Paylocity (NASDAQ:PCTY) Announces Earnings Results, Beats Expectations By $0.22 EPS

Paylocity (NASDAQ:PCTY) issued its quarterly earnings results on Tuesday. The software maker reported $1.84 EPS for the quarter, topping the consensus estimate of $1.62 by $0.22, FiscalAI reports. The firm had revenue of $444.73 million during the quarter, compared to analyst estimates of $431.46 million. Paylocity had a net margin of 14.94% and a return on equity of 25.63%. Paylocity’s revenue for the quarter was up 11.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.56 earnings per share.

Here are the key takeaways from Paylocity’s conference call:

• Fiscal 2026 exceeded expectations: Q4 recurring revenue rose 12.4% and total revenue increased 11%, while adjusted EBITDA of $145.5 million surpassed the high end of guidance by $12.9 million.
• Paylocity reported continued operating momentum, with approximately 44,400 clients, 5% growth in average revenue per client to roughly $37,200, and revenue retention above 92%. Broker referrals contributed more than 25% of new business.
• The company is expanding its platform through Ignite AI, Paylocity Retirement, Elevate Solutions, and the Grayscale and Aidora acquisitions, aiming to improve client productivity and create premium, monetizable product offerings.
• Fiscal 2027 guidance calls for slower growth, with recurring revenue up approximately 8% and total revenue up approximately 7%; assumptions include flat client workforce levels and two interest-rate cuts that would reduce funds-held-for-clients interest income.
• Paylocity repurchased about $398 million of stock in fiscal 2026, reducing diluted shares by 3.1%, and retains approximately $1.3 billion under its authorization while maintaining capacity for acquisitions and other growth investments.

Paylocity Stock Up 0.2%

Paylocity stock traded up $0.34 during midday trading on Wednesday, hitting $143.66. 441,729 shares of the company were exchanged, compared to its average volume of 807,219. The company has a market cap of $7.69 billion, a PE ratio of 30.63 and a beta of 0.48. Paylocity has a fifty-two week low of $92.99 and a fifty-two week high of $197.78. The company’s fifty day moving average price is $116.80 and its 200-day moving average price is $114.33. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.08 and a quick ratio of 1.08.

More Paylocity News

Here are the key news stories impacting Paylocity this week:

• Positive Sentiment: Quarterly results exceeded expectations: Paylocity reported fiscal Q4 earnings of $1.84 per share, above analyst estimates of approximately $1.54-$1.62 and up from $1.56 a year earlier. Revenue rose 11% year over year to $444.73 million, surpassing the $431.46 million consensus estimate. Paylocity Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Forward revenue guidance was slightly ahead of expectations: Management projected fiscal Q1 2027 revenue of $439.5 million to $444.5 million, compared with the $438.6 million analyst consensus. The outlook provides additional support for the stock following the earnings beat. Paylocity Announces Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Analysts raised targets and ratings: BMO Capital Markets increased its target from $143 to $175 and assigned an “outperform” rating. BTIG Research raised its target from $150 to $180 and issued a “buy” rating, while Cantor Fitzgerald lifted its target from $140 to $165 and upgraded the stock to “overweight.” These revisions signal increased confidence in Paylocity’s earnings momentum and potential upside. Paylocity Analyst Price-Target Update
• Neutral Sentiment: Investor materials and the earnings-call transcript provide additional detail on fiscal 2026 performance and management’s outlook, but no separate material change beyond the reported results and guidance was specified. Paylocity Q4 2026 Earnings Call Transcript

Insider Transactions at Paylocity

In other news, SVP Andrew Cappotelli sold 899 shares of the business’s stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $115.05, for a total transaction of $103,429.95. Following the transaction, the senior vice president directly owned 17,679 shares of the company’s stock, valued at approximately $2,033,968.95. The trade was a 4.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 19.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Paylocity

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC lifted its stake in shares of Paylocity by 75.1% in the fourth quarter. AQR Capital Management LLC now owns 943,591 shares of the software maker’s stock worth $143,747,000 after acquiring an additional 404,605 shares in the last quarter. Morgan Stanley increased its holdings in Paylocity by 117.9% during the 4th quarter. Morgan Stanley now owns 817,209 shares of the software maker’s stock worth $124,625,000 after purchasing an additional 442,218 shares during the last quarter. Millennium Management LLC raised its position in shares of Paylocity by 97.7% in the 3rd quarter. Millennium Management LLC now owns 748,803 shares of the software maker’s stock valued at $119,262,000 after purchasing an additional 369,975 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of Paylocity by 6.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 659,472 shares of the software maker’s stock valued at $100,570,000 after purchasing an additional 42,725 shares in the last quarter. Finally, Alyeska Investment Group L.P. purchased a new position in shares of Paylocity during the 3rd quarter valued at approximately $104,657,000. 94.76% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. BMO Capital Markets boosted their price objective on shares of Paylocity from $143.00 to $175.00 and gave the company an “outperform” rating in a research note on Wednesday. Barclays set a $154.00 target price on Paylocity in a research report on Wednesday. KeyCorp boosted their price target on Paylocity from $172.00 to $178.00 and gave the company an “overweight” rating in a research report on Wednesday. Citigroup raised their price objective on Paylocity from $133.00 to $136.00 and gave the stock a “buy” rating in a report on Monday, May 11th. Finally, Cantor Fitzgerald lifted their price objective on Paylocity from $140.00 to $165.00 and gave the company an “overweight” rating in a research note on Wednesday. Twelve investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $158.18.

About Paylocity

Paylocity (NASDAQ: PCTY) is a leading provider of cloud-based payroll and human capital management (HCM) software designed to streamline workforce administration for mid-sized organizations. The company’s integrated platform automates core functions such as payroll processing, benefits administration, time and labor tracking, and compliance management, enabling employers to manage employee data more efficiently and reduce administrative burdens.

In addition to payroll and HR capabilities, Paylocity offers talent management solutions including recruiting, onboarding, performance tracking, and learning management.