If You Invested $1000 in Paycom Software a Decade Ago, This is How Much It'd Be Worth Now

How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Paycom Software (PAYC) ten years ago? It may not have been easy to hold on to PAYC for all that time, but if you did, how much would your investment be worth today?

Paycom Software's Business In-Depth

With that in mind, let's take a look at Paycom Software's main business drivers.

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.

Founded in 1998, the company offers analytics that manages the complete employment life cycle from recruitment to retirement.

Paycom serves nearly 39,200 clients or nearly 20,300 customers based on Parent Company Grouping. Its human resource services include retirement services administration, workers’ compensation administration, employee benefit solutions, professional employer organization and other administrative services for businesses.

Paycom’s HCM solution offers a full suite of applications that generally falls within the following categories, namely talent acquisition, time and labor management, payroll, talent management and HR management.

Its HCM software streamlines and automates many of the day-to-day record-keeping processes and provides a framework for HR staff to manage benefits administration and payroll, map out succession planning and document such things as personnel actions and compliance with industry and/or government regulations. The cloud-based HCM reduces the administrative burden on employers and increases employee productivity.

In 2025, Paycom reported revenues of $2.05 billion, representing growth of 9% year over year. Recurring revenues of $1.94 billion grew 10.3% from the prior year and constituted 94.5% of total revenues.

Paycom talent acquisition and talent management applications compete primarily with Cornerstone OnDemand, Oracle, SAP and Workday. Its payroll applications including payroll processing rival primarily with Automatic Data Processing, Ceridian, Paychex, Paylocity and The Ultimate Software. Its HR management applications contend mainly with ADP, Ceridian, Oracle, Paychex, Paylocity, SAP and Workday. The company’s time and labor management applications compete primarily with ADP, Ceridian, Kronos, Paylocity and The Ultimate Software Group.

As of Dec. 31, 2025, the company had 5,770 employees across the United States.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Paycom Software, ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in September 2016 would be worth $4,633.89, or a 363.39% gain, as of September 2, 2026, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

The S&P 500 rose 251.54% and the price of gold increased 216.67% over the same time frame in comparison.

Analysts are forecasting more upside for PAYC too.

Paycom is benefiting from an employee-first, single-database HCM platform that is pushing automation deeper into payroll and HR workflows. Rising adoption of IWant, Project Arc and new products such as Career and Succession Planning and Asset Management broadens the platform and supports cross-selling. Revenue growth accelerated in the second quarter, while automation-driven efficiencies lifted margins and management raised its full-year outlook. Sales capacity expansion and faster rep productivity add to the longer-term opportunity. Aggressive buybacks also support per-share value creation. Risks remain from client employment sensitivity, slower client additions, intense HCM competition and cybersecurity exposure. Higher borrowings used for repurchases increase leverage, but operating cash generation remains healthy.

The stock has jumped 35.74% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 8 higher, for fiscal 2026; the consensus estimate has moved up as well.

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This article originally published on Zacks Investment Research (zacks.com).

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