NEW YORK, March 28, 2026, 12:06 PM EDT
Paycom Software wrapped up Friday down 4.85% at $117.06, underperforming not just the S&P 500’s 1.67% loss but also the Nasdaq, which dipped 2.15%. The Oklahoma City-based maker of cloud-based payroll and HR tools closed out the day with a roughly $12.0 billion market cap.
The shift is significant—Paycom continues to face pressure from last month’s weaker 2026 projections. That guidance reignited concerns about the company’s potential growth rate versus competitors like ADP, Paylocity, and Workday.
Losses swept across the sector. Paylocity dropped 5.2%, Workday shed 2.9%, and ADP ended down 1.6% on Friday. Reuters noted the S&P 500 software and services index notched its weakest close since Nov. 6, 2023, as investors exited riskier bets and oil prices surged.
Paycom turned up in the headlines this week, but the catalyst wasn’t one to jolt the stock. A Thursday 8-K revealed director Archana Vemulapalli is stepping down from the board effective March 31, chasing new professional pursuits. The company made it clear her exit wasn’t the result of any clash over policy, practices, or operations.
Guidance is still the sticking point. On Feb. 11, Paycom projected 2026 revenue at $2.175 billion to $2.195 billion, falling short of the $2.23 billion analysts were looking for—even as fourth-quarter revenue came in just above consensus. CEO Chad Richison, in the same update, pointed to “strong results in 2025” and noted retention had ticked up to 91%. Reuters
Management hasn’t just stood by. On March 5, the board signed off on a fresh $200 million for stock buybacks, adding to roughly $1.45 billion already spent since July 2024. Still, a recent Reuters analysis flagged that software investors aren’t convinced: even with repurchases ramping up, AI-related concerns are shaking confidence throughout the sector.
For Andrew Slimmon at Morgan Stanley Investment Management, buybacks that show up in the wake of a sharp drop often come off as “an attempt to stop the decline.” Chase Investment Counsel’s Peter Tuz didn’t mince words: “I don’t think the buybacks are enough.” Reuters
That’s the cloud over Paycom now. Automation efforts — with products like IWant, Beti, and GONE — might keep retention numbers solid, which could put a floor under the shares. But if growth falters again, or the market bets that AI is going to hit payroll and HR software harder than Paycom’s team thinks, Friday’s drop won’t look like just a blip; it’ll show investors want more evidence.
