Paycom Software (PAYC) PT Lowered to $115 at Cantor Fitzgerald on Tough 2026 Landscape

Cantor Fitzgerald analyst Matthew VanVliet lowered the price target on Paycom Software (NYSE: PAYC) to $115.00 while maintaining a Neutral rating.

The analyst commented, "While 4Q results were fine, 2026 guidance was light with Recurring & Other growth of 7-8% missing consensus of 9.8% (~2% miss on a $ basis). We had previewed that we expected guidance to come in below 2025 growth, but this was even softer than we had expected. We attribute this to a continuing sluggish demand environment and likely an intensifying competitive landscape. This lower than expected guide was despite 2025 KPIs improving y/y — retention ticked up 1 pt to 91% and client growth accelerated to 5%. It's this disconnect between the improved KPIs and the soft guidance that investors are trying to square. In our opinion, we see the macro/competitive landscape getting tougher in 2026, not better. Therefore, while there is likely some conservatism baked into guidance, we don't view the guide as overly sandbagged. Accordingly, we remain on the sidelines and are lowering our PT to $115 to account for reduced forward outlook."

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