PCTY - Expect Solid 4Q and Consistent Execution to Continue; Rightsizing FY27 Revs In Line W/Street

研报英文原文证据摘录

PCTY - Expect Solid 4Q and Consistent Execution to Continue; Rightsizing FY27 Revs In Line W/Street

Truist Securities

Equity Research Report June 29, 2026

TMT: Application Software and Paylocity Holding Corporation (PCTY)

Agentic AI

PCTY - Expect Solid 4Q and Consistent Execution to Continue;

Terry Tillman Rightsizing FY27 Revs In Line W/Street

404-926-5362

Terry.Tillman@truist.com

The company has executed on double-digit recurring revenue growth over the L-T horizon

Connor Passarella and we expect that to continue in upcoming 4Q. Into FY27 and ahead of what we assume is

212-326-6153 typical conservative guidance, we have fine-tuned our forward rev estimates to be more in

Connor.Passarella@truist.com line with consensus (we had been meaningfully ahead). We would not be surprised to see

the company beat our prior estimates but would assume a walking up of estimates based on

Giancarlo Valle solid business execution/beat-and-raise dynamics as FY27 progresses. Separately, based

212-537-9006 on persistent/incremental AI-driven sector value travails and modestly lower L-T rev CAGR

Giancarlo.Valle@Research.truist.com of 9.5% vs 11% previously, PT lowered to $165 from $180.

Luc Radice Note: We summarize well-articulated talking points by senior management, in our opinion, 212-537-9032

Luc.Radice@truist.com going back several quarters ago related to moats/defensibility that a vendor like Paylocity

should be able to rely on when confronting a market narrative on potential vibe coding and/

or AI disruptor risk going forward. See page 3 for the commentary.

Stock Rating BUY As Figure 1 shows below, the company has executed well over a number of quarters against our FY26 estimates, and we expect another quarter of solid demand and business execution Unchanged