Payroll software maker Paycom forecasts weak 2026 revenue, shares fall

Reuters

Thu, February 12, 2026 at 8:30 AM GMT+9 1 min read

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PAYC

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WDAY

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Feb 11 (Reuters) - Paycom Software forecast annual revenue below Wall Street expectations on ‌Wednesday, as businesses delay or reduce ‌HR and payroll software purchases amid tighter budgets, sending ​its shares down over 7% in extended trading.

Macroeconomic challenges could constrain Paycom’s new customer acquisition, as companies exercise greater caution with HR technology ‌budgets, analysts have ⁠said.

A slowdown in hiring or job cuts among small- and medium-sized ⁠businesses, Paycom’s core client base, could be an additional headwind.

The human capital management market ​has become ​increasingly crowded, with ​Paycom competing against rivals ‌such as ADP, Paylocity and Workday for market share.

The Oklahoma City-based company provides cloud-based software that handles everything from talent acquisition and payroll to time management on a ‌single platform.

Paycom forecast 2026 revenue in ​the range of $2.18 billion ​to $2.20 billion, ​below analysts’ average estimate of $2.23 billion, ‌according to data compiled ​by LSEG.

The ​payroll processor reported revenue of $544.3 million for the fourth quarter ended December 31, ahead ​of analysts’ ‌estimates of $543 million.

(Reporting by Juby Babu ​in Mexico City; Editing by Alan ​Barona and Vijay Kishore)

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