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Paylocity’s $1 Billion Buyback: Can AI And HCM Momentum Keep Driving Growth?

Paylocity Holding Corporation reported third-quarter fiscal 2026 results showing continued momentum with recurring and other revenue reaching $469.9 million, up 11.6% year-over-year, surpassing the high end of guidance by $7.4 million. Total revenue rose 10.5% versus the same period last year, assisted by strong sales and operational execution and a favorable market demand environment. The company also raised its full-year fiscal 2026 guidance, now targeting recurring and other revenue between $1.638 billion to $1.643 billion, representing 11% to 12% growth, and adjusted EBITDA between $638 million to $642 million. Operational efficiency improvements are reflected in a 77.3% adjusted gross profit margin for the quarter, up 30 basis points year-over-year, and continued gross profit and general and administrative leverage. Adjusted EBITDA margin rose by 110 basis points to 43.8%, leading to increased adjusted EBITDA margin guidance for the full year.