Paylocity Holding Corporation (PCTY) AI Stock Analysis

Paylocity Holding Corporation specializes in providing cloud-based human capital management and payroll software solutions tailored for businesses across the United States. Its core suite includes Payroll and Tax Services, alongside expense management, on-demand payment, and garnishment tools. The company provides workforce optimization tools such as employee self-service, document libraries, compliance dashboards, and time and attendance systems supporting kiosks, time clocks, and mobile apps. Paylocity also delivers talent management tools for recruiting, onboarding, learning, performance, and compensation, as well as employee benefits administration and employee experiences solutions such as community forums, surveys, and peer recognition.

Paylocity increased revenue from $852.7M in FY2022 to $1.77B in FY2026, reflecting a 5-year revenue CAGR of 22.7% through FY2026. Annual revenue growth moderated from 34.1% in FY2022 to 11.0% in FY2026. Over the same timeframe, profitability expanded, with operating margin rising from 9.9% in FY2022 to 21.8% in FY2026, and net margin improving from 10.6% to 15.2%. Net income expanded from $90.8M in FY2022 to $269.7M in FY2026, resulting in FY2026 EPS of $7.81. In the latest quarter ended June 30, 2026, quarterly revenue grew 11.0% year-over-year while quarterly earnings grew 27.6%.

As of June 30, 2026, Paylocity held $271.9M in cash and short-term investments against total debt of $123.5M, yielding net cash of $148.5M. The company maintains a debt-to-equity ratio of 0.10, a current ratio of 1.09, and total shareholders' equity of $1.22B. Operating cash flow stood at $533.3M in FY2026. During FY2026, the business allocated $36.2M to capital expenditures and $398.1M to share buybacks, with its 5-year share count changing by -3.0%.

At a last close of $166.32 on October 16, 2026, Paylocity traded at a trailing P/E of 33.8x, above the 28.1x median of its US-listed Technology peers. Its forward P/E of 15.4x sits below the peer median of 18.8x, while its EV/EBITDA of 15.0x compares to the peer median of 16.6x. The stock carries a price-to-sales multiple of 5.2x versus the peer median of 2.8x. Over the past year, the stock returned 12.0%, trailing the S&P 500 (SPY) return of 16.8%, and over five years returned -41.3% compared to 83.0% for the index.

Wall Street coverage includes 15 Strong Buy, 3 Buy, and 3 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target of $172.60 sits 3.8% above the last close of $166.32. For the current fiscal year ending June 30, 2027, consensus estimates project revenue of $1.89B and EPS of $8.74, representing 5.2% EPS growth. Paylocity beat EPS estimates in each of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of Paylocity Holding Corporation (PCTY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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