Paycom posts 8% revenue growth and 23% EPS rise in Q1 2026, with aggressive $1.05B buybacks amid market skepticism.

Paycom Software reported an 8% increase in revenue and a 23% rise in earnings per share for Q1 2026, maintaining a conservative revenue growth forecast of 6-7% for the year. Despite sector-wide valuation pressures and market doubts about software and AI disruption, Paycom prioritized reliable delivery over optimistic projections. The company aggressively repurchased $1.05 billion in shares, reducing outstanding shares by nearly 15%, partly financed through a revolving credit facility. With a forward GAAP price-to-earnings ratio below 15 and strong free cash flow, Paycom's stock appears undervalued relative to its profitability and growth potential.