What You Need To Know Ahead of Paycom Software's Earnings Release

Core Insights - Paycom Software, Inc. has a market capitalization of $11.6 billion and offers cloud-based human capital management software as a service for U.S. businesses, covering the entire employee lifecycle from recruitment to retirement [1] Financial Performance - Analysts expect Paycom to report an EPS of $1.47 for fiscal Q3 2025, reflecting a 12.2% increase from $1.31 in the same quarter last year, with a history of exceeding Wall Street estimates in the past four quarters [2] - For fiscal 2025, EPS is projected to be $7.53, a decrease of 12.7% from $8.62 in fiscal 2024, but is expected to grow by 7.7% year-over-year to $8.11 in fiscal 2026 [3] Stock Performance - Paycom's stock has increased by 23.3% over the past 52 weeks, outperforming the S&P 500 Index's return of 14.1% and the Industrial Select Sector SPDR Fund's gain of 9.2% during the same period [4] Recent Developments - Following the release of Q2 2025 results, Paycom's shares rose by 4.5%, reporting an adjusted EPS of $2.06 and revenue of $483.6 million, exceeding forecasts. The company raised its full-year revenue outlook to between $2.05 billion and $2.06 billion, and core profit forecast to between $872 million and $882 million, driven by strong demand for new AI-powered features [5] Analyst Ratings - The consensus rating for Paycom stock is "Moderate Buy," with 20 analysts covering the stock: five recommend "Strong Buy" and 15 suggest "Hold." The average price target is $252, indicating a potential upside of 25.5% from current levels [6]