Paylocity Tops Q4 Estimates, Guides to ~7% FY27 Revenue Growth, and Highlights $398M in FY26 Buybacks
PCTY sits 59% above its 52-week low of $92.99.
Summary
Paylocity reported Q4 FY2026 revenue of $444.7M (+11% YoY) and adjusted EBITDA of $145.5M, beating estimates. FY27 guidance implies ~7% revenue growth and adjusted EBITDA of $690M-$700M. The company repurchased $398M in shares during FY26.
Key Events · Earnings and Guidance · PCTY
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Q4 Revenue and Earnings Beat
Q4 FY2026 total revenue of $444.7M (+11.0% YoY) and adjusted EBITDA of $145.5M exceeded consensus estimates, with adjusted operating income of $120.2M.
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Full-Year FY2026 Performance
FY2026 total revenue reached $1.771B (+11.0% YoY), GAAP net income rose 18.8% to $269.7M ($4.92 diluted EPS), and adjusted EBITDA grew 12.3% to $654.9M.
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FY2027 Guidance Issued
Management expects FY2027 total revenue of $1.880B-$1.895B (~7% growth) and adjusted EBITDA of $690M-$700M, implying continued margin expansion.
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Share Repurchase Update
Paylocity repurchased $398.1M (2.8M shares) in FY2026, bringing total buybacks to $697.8M (4.6M shares) since May 2024, reducing diluted share count.
Analysis · PCTY · Technology
A strong fiscal fourth quarter saw adjusted EBITDA of $145.5M beat consensus by 10.6%, while adjusted operating income of $120.2M also exceeded expectations. For the full year, revenue climbed 11% to $1.77B, and the company returned $398M to shareholders through buybacks. Looking ahead, FY27 guidance calls for approximately 7% total revenue growth and adjusted EBITDA of $690M-$700M, reflecting continued margin expansion aided by a change in deferred cost amortization. The results underscore Paylocity's ability to grow profitably while returning capital, though the deceleration in revenue growth from 11% to ~7% warrants attention.
At the time of this filing, PCTY was trading at $148.25 on NASDAQ in the Technology sector, with a market capitalization of approximately $7.7B. The 52-week trading range was $92.99 to $197.78. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.