What is Paycom Software's net margin?

Paycom Software (PAYC) reported net margin of 22.4% in Q1 2026.

How has Paycom Software's net margin changed year-over-year?

Paycom Software's net margin increased by 8.9% year-over-year, from 20.6% to 22.4%.

What is the long-term trend for Paycom Software's net margin?

Over 5 years (2020 to 2025), Paycom Software's net margin has grown at a 5.3% compound annual growth rate (CAGR), from 17% to 22.1%.

What does net margin mean?

Net income as a percentage of revenue (trailing twelve months). The bottom-line profitability measure after all costs, interest, and taxes.

Paycom Software PAYC Net margin

Net margin at other companies

Automatic Data Processing, Inc.ADP

20.1%+0.3pp

PaychexPAYX

25.8%-6.1pp

IntuitINTU

21.9%+2.7pp

Workday, Inc.WDAY

8.6%+3.0pp

OracleORCL

25.3%+3.5pp

ServiceNowNOW

12.6%-0.8pp

Other financials

Income statement

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Revenue$571.9M+7.8%

Gross profit$484.6M+8.7%

Operating income$210.2M+13.6%

Net income$155.7M+11.7%

EPS (diluted)$3.04+22.6%

Balance sheet

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Cash & equivalents$153.9M-70.4%

Total debt$763.6M+837%

Total equity$811.7M-52.7%

Total assets$4.8B+5.4%

Cash flow

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Operating cash flow$213.8M+17.2%

CapEx$31.2M-17.2%

Free cash flow$182.6M+26.1%

Valuation

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Market cap$5.82B-47.2%

Profitability

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Gross margin83.4%+1.2pp

Operating margin28.3%+0.4pp

FCF margin21.3%+1.2pp

Returns & leverage

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Return on equity37.1%+12.2pp

Debt / equity0.9×+0.9×

Current ratio1.1×-0.1×

Where this comes from

Calculated from Paycom Software’s reported figures.

net income/total revenue=22.4%

Based on trailing twelve months.

The official record: Paycom Software’s 10-Q, filed May 7, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Paycom Software's net margin?: Paycom Software (PAYC) reported net margin of 22.4% in Q1 2026.
How has Paycom Software's net margin changed year-over-year?: Paycom Software's net margin increased by 8.9% year-over-year, from 20.6% to 22.4%.
What is the long-term trend for Paycom Software's net margin?: Over 5 years (2020 to 2025), Paycom Software's net margin has grown at a 5.3% compound annual growth rate (CAGR), from 17% to 22.1%.
What does net margin mean?: Net income as a percentage of revenue (trailing twelve months). The bottom-line profitability measure after all costs, interest, and taxes.