Payroll software maker Paycom forecasts weak 2026 revenue, shares fall

NEW YORK: 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 seven per cent 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 US$2.18 billion to US$2.20 billion, below analysts’ average estimate of US$2.23 billion, according to data compiled by LSEG.

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

© New Straits Times Press (M) Bhd

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