Equity Profile

PAYC

Paycom Software, Inc.

IndustrialsHuman Resource & Employment Services$6.5B

Aug5Wed

Pre-Earnings Brief

UpcomingQ2-2026After Close5:00 PM EDT

Company Snapshot

Paycom Software, Inc. is a leading provider of human resource and employment services, offering cloud-based payroll and HR solutions....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability and will show how well Paycom is managing its costs and generating income.

N/A

Revenue Growth

Revenue growth reflects the company's ability to attract and retain customers, which is crucial for its long-term success.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

PAYC Q2-2026 Earnings Preview

Context

Company Snapshot

Paycom Software, Inc. is a leading provider of human resource and employment services, offering cloud-based payroll and HR solutions. As a player in the industrial sector, Paycom is positioned to benefit from trends in digital transformation and workforce management, making it relevant in today's evolving job market.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+36.73%

Avg Stock Reaction

-0.28%

Last Quarter Recap

In Q1 2026, Paycom reported an EPS of $3.15, exceeding expectations by 25.8%. Despite the strong earnings surprise, the stock dropped 4.04% the following day.

Management Promises & Guidance

Focus on enhancing customer experience through improved software features.
Commitment to expanding market presence and customer base.
Plans to invest in technology to streamline operations.

Expectations

Wall Street Expectations

Investors are cautiously optimistic ahead of the earnings report, given Paycom's history of beating EPS estimates. However, the market is also wary of potential revenue surprises.

Bull Case

If Paycom continues its trend of strong earnings surprises, it could signal robust demand for its services, leading to a positive stock reaction.

Bear Case

Conversely, if the company fails to meet expectations or shows signs of slowing growth, it could lead to a significant sell-off.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026, and how does it compare to previous quarters?

Given Paycom's history of beating EPS estimates, this number will be crucial for market sentiment and stock performance.

What is the current customer retention rate, and how has it changed from last quarter?

Customer retention is vital for future revenue growth, and any decline could raise concerns about the company's competitive position.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Paycom's ability to sustain its growth trajectory despite potential market headwinds, particularly in customer retention.

Supporting Evidence

Paycom has consistently beaten EPS estimates, indicating strong operational execution.

The options market is pricing in a larger move than historical averages suggest, which may reflect heightened uncertainty rather than a bearish outlook.

Recent insider buying suggests confidence in the company's future performance.

Key Risk

If customer retention rates show a significant decline, it could undermine the bullish sentiment surrounding the stock.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will be closely watched as it could indicate whether Paycom can sustain its growth in a competitive market.

Bull Confirmed If

An EPS of $3.50 or higher would confirm strong profitability and growth potential.

Bear Confirmed If

An EPS below $2.80 would raise concerns about the company's ability to maintain its growth trajectory.

Pre-Earnings Positioning

Options Market

Implied Move

±7.69%

Historical Avg

±2.0%

Pricing rich

The options market is pricing in a relatively large move, suggesting that traders expect significant volatility around the earnings announcement.

Options are pricing ±20.3% while PAYC has averaged ±2.0% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

44.7%

Calls (11K)P/C Ratio: 0.51Puts (10K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Industrials

n=30

Fade rate: 6 of 20 (30%)

This setup has occurred 30 times across Industrials in the last 2 years. 14 of 20 (70%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 4.6%, with a raw directional average of +0.4% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Paycom beats expectations, history suggests the stock could rise by around 0.99% on the first day, confirming strong demand for its services.

In-Line / Cautious

If results are in line with expectations but management's commentary is cautious, the stock may experience muted movement as investors reassess growth prospects.

Miss

If the company misses expectations, history suggests a potential drop of around 4.04%, reflecting investor disappointment.

Preparation

Congressional Activity

House & Senate STOCK Act disclosures over the trailing 6 months.

Trades

1 buy·0 sells

Members

House only

Est. Notional

$1,001.00–$15,000.00

disclosed dollar ranges

Most Active Members

D-CAGilbert CisnerosRep.
1

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on customer retention rates and any changes in strategy to improve them.
2Details on new product features or enhancements that could drive future growth.
3Management's outlook on market conditions and competitive landscape.
4Any commentary on cost management and operational efficiency improvements.
5Insights into customer acquisition strategies and success rates.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

No charge today · Auto-bills $8/mo after 7 days · Cancel anytime

More Earnings This Week

5 Reports

Aug3

ONBMO

ON Semiconductor Corporation

PreviewView

Aug3

LBMO

Company Snapshot

Paycom Software, Inc. is a leading provider of human resource and employment services, offering cloud-based payroll and HR solutions....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability and will show how well Paycom is managing its costs and generating income.

N/A

Revenue Growth

Revenue growth reflects the company's ability to attract and retain customers, which is crucial for its long-term success.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

PAYC Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+36.73%

Avg Stock Reaction

-0.28%

Last Quarter Recap

In Q1 2026, Paycom reported an EPS of $3.15, exceeding expectations by 25.8%. Despite the strong earnings surprise, the stock dropped 4.04% the following day.

Management Promises & Guidance

Focus on enhancing customer experience through improved software features.
Commitment to expanding market presence and customer base.
Plans to invest in technology to streamline operations.

Expectations

Wall Street Expectations

Investors are cautiously optimistic ahead of the earnings report, given Paycom's history of beating EPS estimates. However, the market is also wary of potential revenue surprises.

Bull Case

If Paycom continues its trend of strong earnings surprises, it could signal robust demand for its services, leading to a positive stock reaction.

Bear Case

Conversely, if the company fails to meet expectations or shows signs of slowing growth, it could lead to a significant sell-off.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026, and how does it compare to previous quarters?

Given Paycom's history of beating EPS estimates, this number will be crucial for market sentiment and stock performance.

What is the current customer retention rate, and how has it changed from last quarter?

Customer retention is vital for future revenue growth, and any decline could raise concerns about the company's competitive position.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Paycom's ability to sustain its growth trajectory despite potential market headwinds, particularly in customer retention.

Supporting Evidence

Paycom has consistently beaten EPS estimates, indicating strong operational execution.

The options market is pricing in a larger move than historical averages suggest, which may reflect heightened uncertainty rather than a bearish outlook.

Recent insider buying suggests confidence in the company's future performance.

Key Risk

If customer retention rates show a significant decline, it could undermine the bullish sentiment surrounding the stock.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance will be closely watched as it could indicate whether Paycom can sustain its growth in a competitive market.

Bull Confirmed If

An EPS of $3.50 or higher would confirm strong profitability and growth potential.

Bear Confirmed If

An EPS below $2.80 would raise concerns about the company's ability to maintain its growth trajectory.

Pre-Earnings Positioning

Options Market

Implied Move

±7.69%

Historical Avg

±2.0%

Pricing rich

The options market is pricing in a relatively large move, suggesting that traders expect significant volatility around the earnings announcement.

Options are pricing ±20.3% while PAYC has averaged ±2.0% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.5%

30d HV

44.7%

Calls (11K)P/C Ratio: 0.51Puts (10K)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Industrials

n=30

Fade rate: 6 of 20 (30%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Paycom beats expectations, history suggests the stock could rise by around 0.99% on the first day, confirming strong demand for its services.

In-Line / Cautious

If results are in line with expectations but management's commentary is cautious, the stock may experience muted movement as investors reassess growth prospects.

Miss

If the company misses expectations, history suggests a potential drop of around 4.04%, reflecting investor disappointment.

Preparation

Congressional Activity

House & Senate STOCK Act disclosures over the trailing 6 months.

Trades

1 buy·0 sells

Members

House only

Est. Notional

$1,001.00–$15,000.00

disclosed dollar ranges

Most Active Members

D-CAGilbert CisnerosRep.
1

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on customer retention rates and any changes in strategy to improve them.
2Details on new product features or enhancements that could drive future growth.
3Management's outlook on market conditions and competitive landscape.
4Any commentary on cost management and operational efficiency improvements.
5Insights into customer acquisition strategies and success rates.