Paylocity (PCTY) Beats Q2 Earnings and Revenue Estimates

Core Insights - Paylocity (PCTY) reported quarterly earnings of $1.85 per share, exceeding the Zacks Consensus Estimate of $1.57 per share, and up from $1.52 per share a year ago [1] - The earnings surprise for this quarter was +18.05%, and the company has consistently surpassed consensus EPS estimates over the last four quarters [2] Financial Performance - Paylocity's revenues for the quarter ended December 2025 were $416.13 million, surpassing the Zacks Consensus Estimate by 1.78%, and an increase from $376.98 million year-over-year [3] - The company has also topped consensus revenue estimates in each of the last four quarters [3] Stock Performance and Outlook - Paylocity shares have declined approximately 17% since the beginning of the year, while the S&P 500 has gained 0.5% [4] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][5] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $2.44 on revenues of $483.82 million, and for the current fiscal year, it is $7.37 on revenues of $1.73 billion [8] - The estimate revisions trend for Paylocity was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - The Internet - Software industry, to which Paylocity belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]