Nov. 6 at 6:48 PM
Paycom shares plunged after the HR software company reported earnings that met expectations but reignited concerns about a weakening job market.
For the third quarter, Paycom posted adjusted earnings of
$1.94 per share and revenue of
$493 million, up 9% year over year and slightly above forecasts. Despite reaffirming its full-year outlook, the stock fell 12% to
$161.21, its lowest level since October 2024.
Analysts said the results were solid, citing efficiency gains and steady demand. Oppenheimer maintained a Perform rating, while KeyBanc reiterated Overweight due to strong traction from Paycom’s AI engine “IWant”, which leverages worker data. The firm noted that Paycom’s heavy AI investment phase is mostly complete.
However, both KeyBanc and UBS lowered price targets—to
$250 and
$245, respectively—citing “labor market uncertainty.” Paycom’s per-employee pricing model makes it sensitive to hiring slowdowns, and recent layoffs at UPS and Amazon have heightened investor caution.
$PAYC