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Paycom Software (PAYC) Q3 2026 earnings results (third quarter 2026)
10-Q filed Nov 5, 2026
Paycom Software (PAYC) reported revenue of $544M for the third quarter 2026 (Q3 2026), +10% from a year earlier and +2% from the quarter before. Operating margin was 36.0%, net earnings $133M (24.5% of revenue).
Paycom Software, Q3 2026: revenue $544M (+10% year over year), operating margin 36.0%, net earnings $133M, operating cash flow $186M. The chart follows the revenue to costs, profit and cash.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $544M | +2% | +10% |
| Operating profit | $196M | +16% | +74% |
| Net earnings | $133M | +24% | +20% |
| Operating cash flow | $186M | -13% | +5% |
| Free cash flow | $164M | -14% | +105% |
What changed
Revenue was $543.8M in Q3 2026, up 10% year over year and up 2% from the previous quarter. Recurring and Other was the largest line at 95% of revenue. Recurring and Other added $52.8M year over year (up 11%), 105% of the total change. Interest on Funds Held for Clients declined 9%.
Operating profit was $195.8M, a 36.0% margin (up 13.2 points year over year). Of the extra revenue versus Q3 2025, 165% reached operating profit, above the 23% margin then. Net earnings were $133.2M, up 20% year over year. The effective tax rate was 28.1%.
Operating cash flow was $186.3M (up 5% year over year), 140% of net earnings. Non-cash charges added back $50.7M of depreciation and amortization and $20.4M of share-based compensation. Working capital and other items used $18.0M. Capital expenditures of $22.5M left free cash flow of $163.8M.
Questions
What was Paycom Software's revenue in the third quarter 2026?
Paycom Software (PAYC) reported revenue of $544M for the third quarter 2026 (Q3 2026), +10% from a year earlier and +2% from the quarter before.
Was Paycom Software profitable in the third quarter 2026?
Operating profit was $196M (36.0% of revenue) and net earnings $133M.
Source: Paycom Software 10-Q on SEC EDGAR.