Paycom Software Stock: Is PAYC Outperforming the Technology Sector?

Oklahoma City-based Paycom Software, Inc. (PAYC) offers a cloud-based human capital management (HCM) solution delivered as a software-as-a-service (SaaS) solution for small to mid-sized companies. Valued at a market cap of $12.9 billion, the company’s software offers a comprehensive suite of tools, including payroll, talent management, HR, and time tracking, all integrated into a single platform.

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Paycom Software fits this description perfectly. The company is recognized for its user-friendly interface and automation capabilities, enabling organizations to streamline HR processes, ensure compliance, and enhance the employee experience.

Shares of Paycom Software have dipped 16.8% from its 52-week high of $267.76. PAYC stock has decreased marginally over the past three months, underperforming the iShares U.S. Technology ETF’s (IYW) 13.4% increase.

In the long term, Paycom Software’s stock has risen 8.7% on a YTD basis, whereas IYW has returned 6.7%. Moreover, over the past 52 weeks, shares of PAYC have soared 57.4%, significantly outperforming the IYW's 13.2% return.

Despite the recent downturn, the stock has been trading mostly above its 50-day moving average since last year. In addition, it has risen above its 200-day moving average since late October last year.

Paycom Software stock climbed 9% following Q1 2025 results on May 7. The company reported revenues of $530.5 million, up 6.1% year-over-year, exceeding the Wall Street expectations. Meanwhile, adjusted EBITDA grew 10.3% year-over-year to $253.2 million. Its adjusted EPS came in at $2.80, marking an 8.1% increase from the year-ago quarter, topping the analysts’ estimate.

Looking ahead, the company has raised its full-year guidance, with adjusted EBITDA projected to be in the range of $843 million to $858 million, compared to the earlier forecast, further boosting investor sentiment.

In comparison, rival Autodesk, Inc. (ADSK) has lagged behind PAYC stock. ADSK stock has gained 2.3% on a YTD basis and 24.7% over the past 52 weeks.

Despite the stock’s outperformance relative to the sector, analysts are cautious about its stock’s prospects. PAYC stock has a consensus rating of “Hold” from the 17 analysts covering the stock, and as of writing, it is trading below the mean price target of $244.69.