Paycom Software (NYSE: PAYC) has delivered a 71% total return since a Fair Value signal flagged the stock as undervalued, according to Investing.com. The move crystallized on August 6, 2026, when shares surged 23.5% in a single session after the company reported second-quarter results that beat consensus on both revenue and earnings and raised full-year guidance to imply an adjusted EBITDA margin near 46%.
The quarter ended June 30, 2026 showed total revenue of $531.2 million, up 9.8% year over year and above the $513.3 million consensus. Recurring and other revenue rose 11% to $505.2 million, representing 95.1% of the total. Non-GAAP earnings per diluted share came in at $2.78 versus a $2.38 estimate, while adjusted EBITDA reached $235 million, a 44.2% margin — up 320 basis points from the prior-year quarter. Management lifted the full-year 2026 outlook to revenue of $2.197–$2.212 billion and adjusted EBITDA of $1.007–$1.022 billion.
For much of 2024 and 2025 the market treated Paycom's Beti self-service payroll automation as a revenue risk, fearing it would cannibalize billable services. The stock fell roughly 61% from its all-time high near $559, and even after the August rally it remained down about 25% over the trailing twelve months. The Q2 print reframed that narrative: the same automation features that reduce service hours are now converting into operating leverage.