Paycom Software (PAYC) Beats Q2 Earnings and Revenue Estimates

Company Performance - Paycom Software (PAYC) reported quarterly earnings of $2.06 per share, exceeding the Zacks Consensus Estimate of $1.78 per share, and up from $1.62 per share a year ago, representing an earnings surprise of +15.73% [1] - The company posted revenues of $483.6 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.46% and increasing from $437.51 million year-over-year [2] - Paycom has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Stock Performance - Paycom shares have increased approximately 8.9% since the beginning of the year, compared to a 7.1% gain for the S&P 500 [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.93 on revenues of $488.9 million, and for the current fiscal year, it is $8.95 on revenues of $2.03 billion [7] - The estimate revisions trend for Paycom was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Internet - Software industry, to which Paycom belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8]