Paycom Software (PAYC) Q3 Earnings Lag Estimates

Core Viewpoint - Paycom Software reported quarterly earnings of $1.94 per share, missing the Zacks Consensus Estimate of $1.96 per share, but showing an increase from $1.67 per share a year ago, indicating a mixed performance in earnings despite revenue growth [1][2]. Financial Performance - Paycom's revenues for the quarter ended September 2025 were $493.3 million, surpassing the Zacks Consensus Estimate by 0.19% and up from $451.93 million year-over-year [2]. - The company has exceeded consensus revenue estimates four times over the last four quarters [2]. Stock Performance - Paycom shares have declined approximately 11.3% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.48 on revenues of $543.09 million, and for the current fiscal year, it is $9.25 on revenues of $2.05 billion [7]. - The trend of earnings estimate revisions for Paycom was mixed ahead of the earnings release, which may influence future stock performance [6]. Industry Context - The Internet - Software industry, to which Paycom belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8].