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IAC Inc. (IAC) Presents at TD Cowen's 54th Annual Technology, Media & Telecom Conference Transcript

People Inc. is preparing an offer to acquire MGM Resorts for $18 billion in cash, The New York Times reports.

Barry Diller, whose company already owns a 26% share of casino giant, has said he sees it as a business that is less at risk of being disintermediated by technology.

MGM Resorts International shares jumped on Monday after Barry Diller's People Inc. submitted a proposal to acquire the casino operator in a deal that values the company at approximately $18 billion, including debt. People Inc., formerly known as IAC, already owns a 26.1% stake in MGM and has offered to acquire the remaining shares it does not own for $48.30 per share in cash.

Barry Diller is making his next big move as People Inc. (previously IAC) submitted a non-binding proposal to acquire control of MGM Resorts International. The plan would be to buy outstanding MGM shares that People doesn't already own and take the publicly-traded company private. People Inc.

OKLAHOMA CITY, June 01, 2026 (GLOBE NEWSWIRE) -- Murphy Law Firm is investigating claims on behalf of all individuals whose personal and confidential information was compromised in the data breach involving Industrial Acceptance Corporation d/b/a IAC, Inc. To join the class action lawsuit, visit our site HERE. On February 24, 2025, Industrial Acceptance Corporation d/b/a IAC, Inc. (“IAC”) became aware of suspicious activity on its computer network, indicating a data breach.

Bloomberg Intelligence's Jody Lurie joins Scarlet Fu on "Bloomberg Deals." Barry Diller has made an offer for the remaining portion of MGM Resorts International he doesn't already own, marking the latest pivot for the billionaire media mogul after overhauling IAC.

The media industry has spent the better part of a decade working to capture the attention of audiences whose content consumption habits have diversified to include many options beyond legacy models. Increasingly, the vertical screen has become the dominant one in people's lives.

First Quarter Revenues of $572 million, up 8% year-over-year

First Quarter GAAP Net Income of $156 million, representing 27% of total revenues, or $3.04 per diluted share

First Quarter Non-GAAP Net Income of $161 million, or $3.15 per diluted share

First Quarter Adjusted EBITDA of $275 million, representing 48% of total revenues

OKLAHOMA CITY--(BUSINESS WIRE)--Paycom Software, Inc. (“Paycom,” “we” and “our”) (NYSE: PAYC), a leading provider of comprehensive, cloud-based human capital management software, today announced its financial results for the quarter ended March 31, 2026.

“We delivered solid first-quarter results while executing our strategy to provide full-solution automation, stronger client ROI achievement and world-class service to our clients,” said Chad Richison, founder and CEO of Paycom. “Our focus on creating automation and employee-first technology is driving higher engagement and client satisfaction, while reinforcing Paycom’s position as the most automated solution in our industry. We are trusted leaders in AI and automated decisioning, with proven solutions like Beti, GONE and IWant helping our clients operate more efficiently. With only about 5% of the total addressable market served, we remain confident in the long-term growth opportunity ahead.”

Financial Highlights for the First Quarter of 2026

Total Revenues of $571.9 million represented a 7.8% increase compared to total revenues of $530.5 million in the same period last year. Recurring and other revenues of $544.0 million increased 8.8% from the comparable prior year period and constituted 95.1% of total revenues.

GAAP Net Income was $155.7 million, or $3.04 per diluted share, compared to GAAP net income of $139.4 million, or $2.48 per diluted share, in the same period last year.

Non-GAAP Net Income1 was $161.3 million, or $3.15 per diluted share, compared to $157.7 million, or $2.80 per diluted share, in the same period last year.

Adjusted EBITDA1 was $275.4 million, compared to $253.2 million in the same period last year.

Cash and Cash Equivalents were $153.9 million as of March 31, 2026, compared to $370.0 million as of December 31, 2025. During the quarter ended March 31, 2026, Paycom paid $17.7 million in cash dividends and repurchased 8,375,443 shares of common stock for $1.060 billion, in the aggregate.

Financial Outlook

Paycom provides the following expected financial guidance for the year ending December 31, 2026.

Total revenue in the range of $2.175 billion to $2.195 billion, representing year-over-year growth between 6% and 7%.

Recurring and other revenue growth between 7% and 8% year over year.

Interest on funds held for clients of approximately $103 million.

Adjusted EBITDA in the range of $950 million to $970 million, representing a margin of approximately 44% at the midpoint.

We have not reconciled the forward-looking adjusted EBITDA ranges and adjusted EBITDA margin presented above and discussed on the teleconference call to net income, nor the forward-looking non-GAAP effective income tax rate discussed on the teleconference call, to comparable GAAP measures because applicable information for future periods, on which these reconciliations would be based, is not readily available due to uncertainty regarding, and the potential variability of, depreciation and amortization, interest expense, taxes, non-cash stock-based compensation expense and other items. Accordingly, reconciliations of the forward-looking adjusted EBITDA ranges to net income, the forward-looking adjusted EBITDA margin to net income margin, and the forward-looking non-GAAP effective income tax rate to the GAAP effective income tax rate are not available at this time without unreasonable effort.

Use of Non-GAAP Financial Information

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP financial measures in this press release and on the related teleconference call, including adjusted EBITDA, non-GAAP net income, adjusted gross profit, adjusted gross margin, adjusted sales and marketing expenses, adjusted total administrative expenses, adjusted research and development expenses, adjusted total research and development costs, adjusted EBITDA margin, non-GAAP effective income tax rate, free cash flow and free cash flow margin. Management uses these non-GAAP financial measures as supplemental measures to review and assess the performance of our core business operations and for planning purposes. We define (i) adjusted EBITDA as net income plus interest expense, taxes, depreciation and amortization, non-cash stock-based compensation expense, certain transaction expenses that are not core to our operations (if any) and any loss on the extinguishment of debt, less any gain on modification of the naming rights agreement, (ii) non-GAAP net income as net income plus non-cash stock-based compensation expense, certain transaction expenses that are not core to our operations (if any) and any loss on the extinguishment of debt, less any gain on modification of the naming rights agreement, all of which are adjusted for the effect of income taxes, (iii) adjusted gross profit as gross profit plus applicable non-cash stock-based compensation expense, (iv) adjusted gross margin as gross profit plus applicable non-cash stock-based compensation expense, divided by total revenues, (v) each adjusted expense item as the GAAP expense amount less applicable non-cash stock-based compensation expense, (vi) adjusted total research and development costs as total research and development costs (including the capitalized portion) less applicable non-cash stock-based compensation (including the capitalized portion), (vii) adjusted EBITDA margin as adjusted EBITDA (calculated as described in clause (i)) divided by total revenues, (viii) non-GAAP effective income tax rate as the provision for income taxes plus the income tax effect on non-GAAP adjustments divided by non-GAAP net income (calculated as described in clause (ii)) plus the provision for income taxes and the income tax effect on non-GAAP adjustments, (ix) free cash flow as net cash provided by operating activities, less purchases of property and equipment and purchases of intangible assets (if any), and (x) free cash flow margin as free cash flow (calculated as described in clause (ix)) divided by total revenues. The terms “capital expenditures” and “cap ex” refer to the aggregate amount of purchases of property and equipment and purchases of intangible assets, if any, during the applicable period. The non-GAAP financial measures presented in this press release and discussed on the related teleconference call provide investors with greater transparency to the information used by management in its financial and operational decision-making. We believe these metrics are useful to investors because they facilitate comparisons of our core business operations across periods on a consistent basis, as well as comparisons with the results of peer companies, many of which use similar non-GAAP financial measures to supplement results under GAAP. In addition, adjusted EBITDA is a measure that provides useful information to management about the amount of cash available for reinvestment in our business, paying dividends, repurchasing common stock and other purposes. Management believes that the non-GAAP measures presented in this press release and discussed on the related teleconference call, when viewed in combination with our results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends affecting our business and performance.

The non-GAAP financial measures presented in this press release and discussed on the related teleconference call are not measures of financial performance under GAAP and should not be considered a substitute for net income, gross profit, gross margin, research and development expenses, sales and marketing expenses, administrative expenses, total research and development costs, GAAP effective income tax rate and net cash provided by operating activities. Non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation, or as a substitute for the consolidated statements of income data prepared in accordance with GAAP. The non-GAAP financial measures that we present may not be comparable to similarly titled measures of other companies, and other companies may not calculate such measures in the same manner as we do.

Conference Call Details

In conjunction with this announcement, Paycom will host a conference call today, May 6, 2026, at 5:00 p.m. Eastern time to discuss its financial results. To access this call, dial (833) 461-5787 and provide 317740632 as the access code. A live webcast as well as the replay of the conference call will be available on the Investor Relations page of Paycom’s website at investors.paycom.com.

About Paycom

Paycom Software, Inc. (NYSE: PAYC) is a cloud-based human capital management software provider that allows organizations of all sizes across the U.S. and internationally to set numerous HR and payroll tasks to “automatic” through employee-first technology. Built on a truly single database, Paycom’s full-solution automation manages the entire employment life cycle, helping organizations streamline processes and improve data accuracy. With its industry-first AI engine, IWant™, Paycom provides instant access to accurate employee data without requiring users to navigate or learn the software. For over 25 years, Paycom has been repeatedly recognized by third‑party reviewers as a leading payroll and HCM solution.

Financial Presentation

Dollar amounts are presented in millions, except amounts per share. As a result, some amounts may not sum or recalculate exactly due to rounding. All percentages have been calculated using unrounded amounts.

Forward-Looking Statements

Certain statements in this press release are, and certain statements on the related teleconference call may be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are any statements that refer to our estimated or anticipated results, other non-historical facts or future events and include, but are not limited to, statements regarding our business strategy; anticipated future operating results and operating expenses, cash flows, capital resources, dividends and liquidity; competition; trends, opportunities and risks affecting our business, industry and financial results, including macroeconomic factors; future expansion or growth plans and potential for future growth, including internationally; our ability to attract new clients to purchase our solution; our ability to retain clients and induce them to purchase additional applications; our ability to accurately forecast future revenues and appropriately plan our expenses; market acceptance of our solution and applications; our expectations regarding future revenues generated by certain applications; the return on investment for users of our solution, as well as how certain applications may impact client employee usage and client satisfaction; our ability to attract and retain qualified employees and key personnel; future regulatory, judicial and legislative changes; how the performance of certain of our offerings is sensitive to changes in the labor market; our plan to add sales teams and our ability to effectively execute such plan; the sufficiency of our existing cash and cash equivalents to meet our working capital and capital expenditure needs over the next 12 months; our plans regarding our capital expenditures and investment activity as our business grows, including with respect to research and development and the expansion of our facilities; our plans to pay cash dividends; our plans to repurchase shares of our common stock through a stock repurchase plan using cash and/or borrowings under our senior secured revolving credit facility; and our expected income tax rate for future periods. In addition, forward-looking statements also consist of statements involving trend analyses and statements including such words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “should,” “will,” “would,” and similar expressions or the negative of such terms or other comparable terminology. These forward-looking statements are based only on information currently available to us, speak only as of the date hereof and are subject to business and economic risks. As such, our actual results could differ materially from those set forth in the forward-looking statements as a result of the factors discussed in our filings with the Securities and Exchange Commission, including but not limited to those discussed in our most recent Annual Report on Form 10-K. We do not undertake any obligation to update or revise the forward-looking statements to reflect events that occur or circumstances that exist after the date on which such statements were made, except to the extent required by law.

Paycom Software, Inc.
Unaudited Consolidated Balance Sheets
(in millions, except per share amounts)

March 31, 2026

December 31, 2025

Assets

Current assets:

Cash and cash equivalents

$

153.9

$

370.0

Accounts receivable

51.3

44.9

Prepaid expenses

58.0

47.5

Inventory

1.5

1.7

Income tax receivable

20.6

78.2

Deferred contract costs

164.1

159.5

Current assets before funds held for clients

449.4

701.8

Funds held for clients

2,624.6

5,137.0

Total current assets

3,074.0

5,838.8

Property and equipment, net

669.0

687.3

Intangible assets, net

34.0

37.4

Goodwill

51.9

51.9

Long-term deferred contract costs

872.8

857.4

Operating lease right-of-use assets

86.2

89.4

Other assets

33.8

36.5

Total assets

$

4,821.8

$

7,598.7

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

9.4

$

6.6

Accrued commissions and bonuses

14.2

28.2

Accrued payroll and vacation

42.6

60.1

Deferred revenue

32.3

28.3

Operating lease liabilities

28.6

28.4

Accrued expenses and other current liabilities

87.7

79.8

Current liabilities before client funds obligation

214.8

231.4

Client funds obligation

2,624.7

5,137.0

Total current liabilities

2,839.5

5,368.4

Deferred income tax liabilities, net

306.6

304.4

Long-term deferred revenue

121.7

121.9

Long-term debt

675.0

—

Long-term operating lease liabilities

60.0

61.9

Other long-term liabilities

7.2

10.6

Total long-term liabilities

1,170.6

498.8

Total liabilities

4,010.1

5,867.2

Commitments and contingencies

Stockholders’ equity:

Common stock, $0.01 par value (100.0 shares authorized, 63.7 and 63.6 shares issued at March 31, 2026 and December 31, 2025, respectively; 46.6 and 54.8 shares outstanding at March 31, 2026 and December 31, 2025, respectively)

0.6

0.6

Additional paid-in capital

887.3

878.4

Retained earnings

2,393.8

2,255.6

Accumulated other comprehensive earnings (loss)

(0.6

)

0.3

Treasury stock, at cost (17.1 and 8.8 shares at March 31, 2026 and December 31, 2025, respectively)

(2,469.4

)

(1,403.4

)

Total stockholders’ equity

811.7

1,731.5

Total liabilities and stockholders’ equity

$

4,821.8

$

7,598.7

Paycom Software, Inc.
Unaudited Consolidated Statements of Comprehensive Income
(in millions, except per share amounts)

Three Months Ended March 31,

2026

2025

Revenues

Recurring and other

$

544.0

$

500.0

Interest on funds held for clients

27.8

30.5

Total revenues

571.9

530.5

Cost of revenues

Operating expenses

62.9

66.3

Depreciation and amortization

24.4

18.3

Total cost of revenues

87.3

84.6

Administrative expenses

Sales and marketing

117.6

110.9

Research and development

60.7

62.3

General and administrative

69.4

66.0

Depreciation and amortization

26.7

21.6

Total administrative expenses

274.3

260.8

Total operating expenses

361.7

345.4

Operating income

210.2

185.1

Interest expense

(4.0

)

(0.8

)

Other income, net

9.1

6.0

Income before income taxes

215.3

190.3

Provision for income taxes

59.5

50.9

Net income

$

155.7

$

139.4

Earnings per share, basic

$

3.05

$

2.49

Earnings per share, diluted

$

3.04

$

2.48

Weighted average shares outstanding:

Basic

51.1

56.0

Diluted

51.2

56.3

Comprehensive earnings:

Net income

$

155.7

$

139.4

Unrealized net gains (losses) on available-for-sale securities

(0.7

)

0.6

Tax effect

(0.2

)

(0.1

)

Other comprehensive income (loss), net of tax

(0.9

)

0.5

Comprehensive earnings

$

154.9

$

139.9

Paycom Software, Inc.
Unaudited Consolidated Statements of Cash Flows
(in millions)

Three Months Ended March 31,

2026

2025

Cash flows from operating activities

Net income

$

155.7

$

139.4

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

51.1

39.9

Stock-based compensation expense

14.1

22.2

Amortization of debt issuance costs

0.2

0.3

Loss on disposition of property and equipment

2.9

—

Accretion of discount on available-for-sale securities

(1.3

)

(1.3

)

Non-cash marketing expense

0.1

0.4

Deferred income taxes, net

2.0

(6.2

)

Gain on modification of naming rights agreement

(9.0

)

—

Other

—

0.1

Changes in operating assets and liabilities:

Accounts receivable

(4.6

)

7.9

Prepaid expenses

(15.1

)

(4.5

)

Inventory

0.1

—

Other assets

2.4

0.3

Deferred contract costs

(20.1

)

(31.4

)

Income taxes, net

57.6

54.9

Accounts payable

2.4

(14.4

)

Accrued commissions and bonuses

(13.9

)

(13.4

)

Accrued payroll and vacation

(17.5

)

(12.5

)

Deferred revenue

3.9

4.1

Accrued expenses and other liabilities

1.5

(4.0

)

Net change in operating right-of-use assets and operating lease liabilities

1.4

0.7

Net cash provided by operating activities

213.8

182.5

Cash flows from investing activities

Purchases of investments from funds held for clients

(166.6

)

(342.2

)

Proceeds from investments from funds held for clients

167.0

—

Purchases of property and equipment

(31.2

)

(37.7

)

Net cash used in investing activities

(30.8

)

(379.9

)

Cash flows from financing activities

Proceeds from borrowings under credit facility

675.0

—

Repurchases of common stock

(1,054.3

)

—

Withholding taxes paid related to net share settlements

(6.1

)

(5.2

)

Dividends paid

(17.7

)

(21.1

)

Proceeds from employee stock purchase plan

3.6

—

Net change in client funds obligation

(2,512.3

)

(1,426.0

)

Net cash used in financing activities

(2,911.8

)

(1,452.3

)

Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents

(2,728.8

)

(1,649.7

)

Cash, cash equivalents, restricted cash and restricted cash equivalents

Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period

5,132.5

4,042.8

Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

$

2,403.8

$

2,393.1

Paycom Software, Inc.
Unaudited Consolidated Statements of Cash Flows, continued
(in millions)

Three Months Ended March 31,

2026

2025

Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents

Cash and cash equivalents

$

153.9

$

520.8

Restricted cash included in funds held for clients

2,249.8

1,872.3

Total cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

$

2,403.8

$

2,393.1

Supplemental disclosures of cash flow information:

Non-cash investing and financing activities:

Purchases of property and equipment, accrued but not paid

$

2.0

$

5.5

Stock-based compensation for capitalized software

$

0.3

$

5.3

Right-of-use assets obtained in exchange for operating lease liabilities

$

2.9

$

2.2

Paycom Software, Inc.
Unaudited Reconciliations of GAAP to Non-GAAP Financial Measures
(in millions, except per share amounts)

Three Months Ended March 31,

2026

2025

Net income to adjusted EBITDA:

Net income

$

155.7

$

139.4

Interest expense

4.0

0.8

Provision for income taxes

59.5

50.9

Depreciation and amortization

51.1

39.9

EBITDA

270.4

231.0

Non-cash stock-based compensation expense

14.1

22.2

Gain on modification of naming rights agreement

(9.0

)

—

Adjusted EBITDA

$

275.4

$

253.2

Net income margin

27.2

%

26.3

%

Adjusted EBITDA margin

48.2

%

47.7

%

Three Months Ended March 31,

2026

2025

Net income to non-GAAP net income:

Net income

$

155.7

$

139.4

Non-cash stock-based compensation expense

14.1

22.2

Gain on modification of naming rights agreement

(9.0

)

—

Income tax effect on non-GAAP adjustments

0.5

(3.9

)

Non-GAAP net income

$

161.3

$

157.7

Weighted average shares outstanding:

Basic

51.1

56.0

Diluted

51.2

56.3

Earnings per share, basic

$

3.05

$

2.49

Earnings per share, diluted

$

3.04

$

2.48

Non-GAAP net income per share, basic

$

3.16

$

2.82

Non-GAAP net income per share, diluted

$

3.15

$

2.80

Three Months Ended March 31,

2026

2025

Earnings per share to non-GAAP net income per share, basic:

Earnings per share, basic

$

3.05

$

2.49

Non-cash stock-based compensation expense

0.28

0.40

Gain on modification of naming rights agreement

(0.18

)

—

Income tax effect on non-GAAP adjustments

0.01

(0.07

)

Non-GAAP net income per share, basic

$

3.16

$

2.82

Three Months Ended March 31,

2026

2025

Earnings per share to non-GAAP net income per share, diluted:

Earnings per share, diluted

$

3.04

$

2.48

Non-cash stock-based compensation expense

0.27

0.39

Gain on modification of naming rights agreement

(0.18

)

—

Income tax effect on non-GAAP adjustments

0.01

(0.07

)

Non-GAAP net income per share, diluted

$

3.15

$

2.80

Three Months Ended March 31,

2026

2025

Adjusted gross profit:

Total revenues

$

571.9

$

530.5

Less: Total cost of revenues

(87.3

)

(84.6

)

Total gross profit

484.5

445.9

Plus: Non-cash stock-based compensation expense

2.2

3.0

Total adjusted gross profit

$

486.7

$

448.9

Gross margin

84.7

%

84.0

%

Adjusted gross margin

85.1

%

84.6

%

Three Months Ended March 31,

2026

2025

Adjusted sales and marketing expenses:

Sales and marketing expenses

$

117.6

$

110.9

Less: Non-cash stock-based compensation expense

(4.1

)

(5.9

)

Adjusted sales and marketing expenses

$

113.5

$

105.0

Total revenues

$

571.9

$

530.5

Sales and marketing expenses as a % of revenues

20.6

%

20.9

%

Adjusted sales and marketing expenses as a % of revenues

19.8

%

19.8

%

Three Months Ended March 31,

2026

2025

Adjusted total administrative expenses:

Total administrative expenses

$

274.3

$

260.8

Less: Non-cash stock-based compensation expense

(11.9

)

(19.2

)

Adjusted total administrative expenses

$

262.5

$

241.6

Total revenues

$

571.9

$

530.5

Total administrative expenses as a % of revenues

48.0

%

49.1

%

Adjusted total administrative expenses as a % of revenues

45.9

%

45.5

%

Three Months Ended March 31,

2026

2025

Adjusted research and development expenses:

Research and development expenses

$

60.7

$

62.3

Less: Non-cash stock-based compensation expense

0.1

(6.9

)

Adjusted research and development expenses

$

60.8

$

55.4

Total revenues

$

571.9

$

530.5

Research and development expenses as a % of revenues

10.6

%

11.7

%

Adjusted research and development expenses as a % of revenues

10.6

%

10.4

%

Three Months Ended March 31,

2026

2025

Total research and development costs:

Capitalized research and development costs

$

25.3

$

33.7

Research and development expenses

60.7

62.3

Total research and development costs

$

86.0

$

96.0

Total revenues

$

571.9

$

530.5

Total research and development costs as a % of revenues

15.0

%

18.1

%

Adjusted total research and development costs:

Total research and development costs

$

86.0

$

96.0

Less: Capitalized non-cash stock-based compensation

(0.3

)

(5.3

)

Less: Non-cash stock-based compensation expense

0.1

(6.9

)

Adjusted total research and development costs

$

85.8

$

83.8

Total revenues

$

571.9

$

530.5

Adjusted total research and development costs as a % of revenues

15.0

%

15.8

%

Three Months Ended March 31,

2026

2025

Free cash flow and free cash flow margin:

Net cash provided by operating activities

$

213.8

$

182.5

Purchases of property and equipment

(31.2

)

(37.7

)

Free cash flow

$

182.7

$

144.8

Operating cash flow margin

37.4

%

34.4

%

Free cash flow margin

31.9

%

27.3

%

Paycom Software, Inc.
Unaudited Components of Non-Cash Stock-Based Compensation Expense
(in millions)

Three Months Ended March 31,

2026

2025

Non-cash stock-based compensation expense:

Operating expenses

$

2.2

$

3.0

Sales and marketing

4.1

5.9

Research and development

(0.1

)

6.9

General and administrative

7.8

6.4

Total non-cash stock-based compensation expense

$

14.1

$

22.2

More News From Paycom Software, Inc.

Paycom Software, Inc. (PAYC) Q1 2026 Earnings Call Transcript

Key Takeaways Paycom posted Q1 EPS of $3.15 and revenues of $571.9M, both ahead of consensus and up year over year.PAYC's recurring revenues rose 8.8% to $544M, while gross margin expanded 50 bps to 85.1%.Paycom guided 2026 revenues of $2.175-$2.195B and expects adjusted EBITDA of $950-$970M. Paycom Software, Inc. (PAYC - Free Report) reported better-than-expected first-quarter 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.

The online payroll and human resource technology provider reported non-GAAP earnings of $3.15 per share, which increased 12.5% year over year and beat the Zacks Consensus Estimate by 7.5%.

Paycom’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, the average surprise being 5.7%.

Revenues totaled $571.9 million, which rose 7.8% from the year-ago quarter and exceeded the consensus estimate of $565 million by 1.2%.

Paycom’s Q1 in DetailPaycom’s Recurring revenues (representing 95.1% of the total revenues) improved 8.8% to $544 million in the first quarter. Our estimate for the company’s Recurring revenues was pegged at $538.2 million.

Paycom’s revenues from the Interest on funds held for clients segment decreased to $27.8 million from $30.5 million in the year-ago quarter and contributed 4.9% to total sales. Our estimate for the segment’s revenues was pegged at $27.7 million.

Adjusted gross profits increased 8.4% from the year-ago period to $486.7 million. The adjusted gross margin expanded 50 basis points (bps) on a year-over-year basis to 85.1%.

Paycom’s adjusted EBITDA rose 8.8% year over year to $275.4 million. The adjusted EBITDA margin expanded 50 basis points to 48.2%.

Paycom’s Balance Sheet & Cash FlowPaycom exited the first quarter with cash and cash equivalents of $153.9 million compared with $370 million recorded in the previous quarter. The company had long-term debt of $675 million as of March 31, 2026.

In the first quarter of 2026, PAYC generated operating cash flow of approximately $213.8 million, paid out $17.7 million in dividends and bought back $1.06 billion worth of its common stock.

The board also approved a new $2 billion buyback authorization. Earlier on May 4, Paycom declared its upcoming quarterly dividend of 37.5 cents per share, payable on May 26, 2026.

Paycom Reaffirms 2026 GuidanceFollowing the first-quarter performance, management reaffirmed full-year guidance ranges. For 2026, Paycom continues to expect total revenues of $2.175-$2.195 billion, implying year-over-year growth of 6-7%. The Zacks Consensus Estimate is pegged at $2.19 billion, indicating year-over-year growth of 6.8%.

The company projects recurring revenues to grow 7-8% year over year. PAYC forecasts revenues from Interest on funds held for clients to be $103 million.

Paycom expects its 2026 adjusted EBITDA to be between $950 million and $970 million, translating to an EBITDA margin of approximately 44% at the midpoint.

Paycom’s Zacks Rank & Stocks to ConsiderCurrently, PAYC carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom (AVGO - Free Report) , Celestica (CLS - Free Report) and Amphenol (APH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Broadcom have gained 19.2% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by 9 cents over the past 30 days, indicating an increase of 67.9% year over year.

Shares of Celestica have gained 30.3% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 3.4% over the past seven days, indicating an increase of 67.9% year over year.

Amphenol shares have jumped 1.1% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up by 11% over the past seven days, indicating an increase of 42.5% year over year.

(We are reissuing this article to correct a mistake. The original article, issued on May 7, 2026, should no longer be relied upon.)

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Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

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To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Paycom Software (PAYC - Free Report) Headquartered in Oklahoma City, Paycom Software, Inc. is a provider of cloud-based human capital management (HCM) software as a service solution for integrated software for both employee records and talent management processes.

PAYC is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Computer and Technology stock. PAYC has a Momentum Style Score of B, and shares are up 4.7% over the past four weeks.

Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.26 to $10.63 per share. PAYC boasts an average earnings surprise of +5.7%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, PAYC should be on investors' short list.

OKLAHOMA CITY--(BUSINESS WIRE)--Paycom Software, Inc. (NYSE: PAYC) (“Paycom”), a leading provider of comprehensive, cloud-based human capital management software, was named a top payroll product in G2's Summer 2026 Grid® Reports, while also placing among the best in several HR and payroll categories, including No. 1 in G2's Implementation Index. Paycom was a top scorer in the Payroll category for its ability to manage and streamline payroll processes, ensuring employees are paid accurately and.

On May 28, 2026, Paycom Software Inc (PAYC) shares rose 3.4% to $136.80. The stock has experienced significant volatility, trading within a 52-week range of $10

Investors interested in Internet - Software stocks are likely familiar with Paycom Software (PAYC) and Autodesk (ADSK). But which of these two stocks presents investors with the better value opportunity right now?

OKLAHOMA CITY--(BUSINESS WIRE)--Paycom Software, Inc. (NYSE: PAYC) (“Paycom”), a leading provider of comprehensive, cloud-based human capital management software, was named one of America's Greatest Workplaces in Tech 2026 by Newsweek. The award recognizes the top technology companies in the U.S. based on their performance across a range of metrics — including compensation, career progression and working environment — from the perspective of their employees. “Being a winning organization starts.

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SAN JOSE, Calif.--(BUSINESS WIRE)--Power Integrations (Nasdaq: POWI) will release its first-quarter financial results after market hours on Thursday, May 7, 2026, and will host a conference call that day beginning at 1:30 p.m. Pacific time.

A live and archived audio webcast of the conference call will be available on the company’s investor web page at https://investors.power.com. Dial-in participants can register for the conference call by clicking here and completing the online form.

About Power Integrations

Power Integrations, Inc. is a leading innovator in semiconductor technologies for high-voltage power conversion. The company’s products are key building blocks in the clean-power ecosystem, enabling the generation of renewable energy as well as the efficient transmission and consumption of power in applications ranging from milliwatts to megawatts. For more information please visit www.power.com.

Power Integrations and the Power Integrations logo are trademarks or registered trademarks of Power Integrations, Inc. All other trademarks are property of their respective owners.

More News From Power Integrations, Inc.

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On April 20, 2026, Power Integrations Inc (POWI) shares rose 5.4%, bringing the current price to $61.83. Over the past year, the stock has fluctuated between a

Power Integrations went vertical in April, which pushed up valuations, but there is not enough that warrants these much higher valuations. The spike in valuations stands in contrast to the modest growth POWI itself called for in the last report, which is not sustainable. The upcoming earnings report has to come in better than the preceding one to back up elevated valuations, but the opposite could happen.

Advisor clients have myriad goals and needs for their portfolios — but this year, delivering on them has gotten more complicated. Events in the Middle East will likely spur inflation for the rest of 2026.

Power Integrations (POWI - Free Report) came out with quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +10.28%. A quarter ago, it was expected that this maker of integrated circuits used for power conversion would post earnings of $0.19 per share when it actually produced earnings of $0.23, delivering a surprise of +21.05%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Power Integrations, which belongs to the Zacks Semiconductors - Power industry, posted revenues of $108.31 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.51%. This compares to year-ago revenues of $105.53 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Power Integrations shares have added about 120.1% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for Power Integrations?While Power Integrations has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Power Integrations was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.29 on $115.06 million in revenues for the coming quarter and $1.23 on $469.55 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Semiconductors - Power is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Workday (WDAY - Free Report) , another stock in the broader Zacks Computer and Technology sector, has yet to report results for the quarter ended April 2026. The results are expected to be released on May 21.

This maker of human resources software is expected to post quarterly earnings of $2.49 per share in its upcoming report, which represents a year-over-year change of +11.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Workday's revenues are expected to be $2.52 billion, up 12.4% from the year-ago quarter.

Power Integrations, Inc. (POWI) Q1 2026 Earnings Call Transcript

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Compact, low-profile designs use highly integrated, 1700 V-rated PowiGaN™, single-HEMT ICs to save space, simplify designs, improve reliability and lower BOM count with 88 percent efficiency

TAIPEI, Taiwan--(BUSINESS WIRE)--COMPUTEX – Power Integrations (NASDAQ: POWI), the leader in high-voltage integrated circuits for energy-efficient power conversion, today introduced two new ultra-slim, compact auxiliary power supply reference designs for 800 VDC AI data centers. The single-output, 15 W design is only 30 mm by 30 mm with a 7 mm profile, while the isolated, six-rail, 35 W design is only 80 mm by 60 mm with an 8 mm profile. Optimized specifically for the NVIDIA Kyber liquid-cooled, blade-rack architecture, these ultra-compact solutions free up approximately 30 percent space on densely packed main power distribution boards (PDBs) with an estimated 30 percent reduction in the BOM count—streamlining design and improving overall reliability. These designs are highly efficient with at least 88 percent efficiency across line and load.

As the only company offering single-HEMT 1700 V GaN devices, Power Integrations can design best-in-class, highly efficient flyback converters with a low BOM count while maintaining wide safety margins on an 800 V bus.

Share “As the only company offering single-HEMT 1700 V GaN devices, Power Integrations can design these best-in-class, highly efficient flyback converters with a low BOM count while maintaining wide safety margins on an 800 V bus,” said Jason Yan, Senior Training Manager at Power Integrations. “The only alternative solutions are discrete, costly silicon carbide (SiC) devices which require 30 percent more components and space to operate.”

The newly published design example reports describe 35 W and 15 W flyback auxiliary power supplies for high-voltage AI data center applications. These compact power supply units (PSUs) provide power for internal components such as MCUs, gate drivers, and op-amps, which deliver critical “control and housekeeping” functions to ensure reliability, efficiency and system safety.

Both designs are based on Power Integrations’ InnoMux™-2 ICs with 1700 V PowiGaN gallium-nitride (GaN) technology. The 1700 V-rated InnoMux-2 IC easily supports 1000 VDC nominal input voltage in a flyback configuration and can deliver flat efficiency of 90 percent in discontinuous conduction mode (DCM) while maximizing power delivery.

Resources

These designs can be downloaded for free from power.com:

DER-1110 – this design uses the IMX2353F to deliver a 35 W, multi-output flyback PSU for auxiliary power supplies used in high-voltage AI data centers. DER-1114 – this design uses the IMX2353F to deliver a 15 W, single-output flyback PSU for auxiliary power supplies used in high-voltage AI data centers. For further information, contact a Power Integrations sales representative or one of the company’s authorized worldwide distributors—DigiKey, Newark, Mouser and RS Components, or visit power.com.

About Power Integrations

Power Integrations, Inc. is a leading innovator in semiconductor technologies for high-voltage power conversion. The company’s products are key building blocks in the clean-power ecosystem, enabling the generation of renewable energy as well as the efficient transmission and consumption of power in applications ranging from milliwatts to megawatts. For more information, please visit www.power.com.

Power Integrations, the Power Integrations logo, PowiGaN, InnoMux-2, and EcoSmart are trademarks, service marks or registered trademarks of Power Integrations, Inc. NVIDIA is a registered trademark of NVIDIA. All other trademarks are the property of their respective owners.

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Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Power Integrations (POWI - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Power Integrations currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if POWI is a promising momentum pick, let's examine some Momentum Style elements to see if this maker of integrated circuits used for power conversion holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For POWI, shares are up 18.56% over the past week while the Zacks Semiconductors - Power industry is up 18.56% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 14.57% compares favorably with the industry's 14.57% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Power Integrations have risen 82.37%, and are up 68.91% in the last year. On the other hand, the S&P 500 has only moved 10.51% and 29.58%, respectively.

Investors should also take note of POWI's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now POWI is averaging 1,478,584 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with POWI.

Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost POWI's consensus estimate, increasing from $1.23 to $1.31 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that POWI is a #2 (Buy) stock and boasts a Momentum Score of A. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Power Integrations on your short list.