Paycom Software, Inc. — Cyborg Score 8/10

Strong
Cloud human capital management software

Strategic Profile

Paycom is positioned as the most automated solution in its industry, leveraging AI-powered automation tools like Beti, GONE, and IWant to drive client efficiency and operational performance. The company demonstrated strong client retention at 91% in 2025 and achieved 5% year-over-year client count growth to approximately 20,300 parent company accounts.

Cyborg Score Rationale

Paycom delivered Q4 2025 EPS of $2.45, exceeding analyst expectations by 8.89%. Q1 2026 generated $572M in revenue (+8% YoY) with 27% net margin and 48% Adjusted EBITDA margin. Strong fundamentals combined with high retention and market expansion opportunity support confident outlook.

Top Insights

  • (February 2026) CEO highlighted 2025 achievement of 91% client retention and expansion of automated decisioning tools as key competitive differentiators
  • (May 2026) Q1 2026 revenue grew 8% YoY to $572M with strong net income of $156M and EPS of $3.04, beating analyst expectations
  • (Q1 2026) Company aggressively returned capital via $1.06B share buybacks and $17.7M dividend payments while maintaining growth trajectory
  • (January 2025) Launched IWant, a command-driven AI solution, expanding automation capabilities across user types

Named Competitors

  • Workforce Now — Comprehensive HR, payroll, and talent management for enterprises
  • Workday HCM — Cloud HR and financial management platform for large enterprises
  • BambooHR — Cloud HR software focused on SMB market with automation features

Recent Developments

  • (February 2026) Reported FY2025 results with 91% client retention rate and launched expanded automated decisioning tools
  • (May 2026) Q1 2026 revenue of $572M (+8% YoY), net income of $156M; provided FY2026 guidance of $2.175-$2.195B revenue (+6-7% growth)
  • (May 2026) Announced quarterly dividend of $0.375 per share and aggressive share repurchase program totaling $1.06B in Q1 2026

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