-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
PAYC delivered solid Q1 2026 results with revenue of $572M (+8%) and non-GAAP EPS of $3.15 (+13%), beating consensus by $0.16, while adjusted EBITDA margin expanded to 48.2%. Recurring revenue growth of 9% reflects moderation from historical double-digit expansion, consistent with management's conservative 2026 guidance of 6%-7% revenue growth. We believe PAYC's AI automation solutions including Beti, GONE, and IWant position the company as a differentiated leader, driving higher client engagement and satisfaction. Management emphasized confidence in long-term growth opportunities, noting only 5% of the total addressable market is currently served. Capital allocation remained aggressive with $1.06B in share repurchases and $17.7M in dividends, totaling over $1.08B in returns despite taking on $675M in new debt. Continued operational leverage and market share gains expected as the company leverages its employee-first technology platform to capture untapped market opportunity.