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Retained earnings is the accumulated portion of net income that is not distributed to shareholders. Paycom Software's retained earnings for the quarter that ended in Mar. 2026 was $2,394 Mil.
Paycom Software's quarterly retained earnings
increased
from Sep. 2025 ($2,163 Mil) to Dec. 2025 ($2,256 Mil) and
increased
from Dec. 2025 ($2,256 Mil) to Mar. 2026 ($2,394 Mil).
Paycom Software's annual retained earnings
increased
from Dec. 2023 ($1,470 Mil) to Dec. 2024 ($1,888 Mil) and
increased
from Dec. 2024 ($1,888 Mil) to Dec. 2025 ($2,256 Mil).
Historically profitable companies sometimes have negative retained earnings. This is because they have cumulatively paid out more to shareholders than they reported in profits.
For example, in 2011, Microsoft had negative retained earnings. This does not mean the company lost more money than it made over the years. It just means it paid out more money than it earned.
If a company has negative retained earnings, investors should check the 10-year financial results. They should not assume that negative retained earnings prove a company has generally lost money in the past.
Of course, many companies with negative retained earnings have indeed lost money in the past.
Retained Earnings: Warren Buffett's Secret.
One of the most important indicators of durable competitive advantage. Net earnings can be paid out as dividends, used to buy back shares or retained for growth.
If the company loses more than it has accumulated, retained earnings is negative.
If a company isn't adding to its retained earnings, it isn't growing its net worth.
Rate of growth of retained earnings is good indicator whether it's benefiting from a competitive advantage.
Microsoft is negative because it chose to buyback stock and pay dividends.
The more earnings retained, the faster it grows and increases growth rate for future earnings.
Paycom Software Retained Earnings Historical Data
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The historical data trend for Paycom Software's Retained Earnings can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Retained Earnings is the accumulated portion of net income that is not distributed to shareholders. Because the net income was not distributed to shareholders, shareholders' equity is increased by the same amount.
Of course, if a company loses, it is called retained losses, or accumulated losses.
Paycom Software (PAYC) has a Retained Earnings of $2,394 Mil as of Mar. 2026. Retained earnings is the amount of net income not issued to shareholders. View historical data on Paycom Software and its competitors.
Is Paycom Software's Retained Earnings too high?
Paycom Software's current Retained Earnings is $2,394 Mil. Overall, Paycom Software has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paycom Software's Retained Earnings compare to ESTC and CVLT?
Paycom Software's Retained Earnings of $2,394 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Retained Earnings for a Software company?
A good Retained Earnings depends on the Software industry context. However, Retained Earnings should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Retained Earnings mean?
A high Retained Earnings can signal that a stock is expensive relative to its fundamentals. Retained earnings is the amount of net income not issued to shareholders. View historical data on Paycom Software and its competitors. Paycom Software's current Retained Earnings is $2,394 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paycom Software stock overvalued right now?
Based on GuruFocus' analysis, Paycom Software (PAYC) is currently considered Significantly Undervalued. The stock's GF Value™ is $256.25, compared to a current price of $144.22 — trading 43.7% below its estimated fair value. The current Retained Earnings is $2,394 Mil. Paycom Software's overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Retained Earnings calculated?
Retained Earnings is calculated from a company's financial statements. For Paycom Software (PAYC), the current Retained Earnings is $2,394 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Paycom Software (PAYC) Overvalued in 2026?
Based on GuruFocus' analysis, Paycom Software stock appears to be undervalued.
The current stock price of $144.22 is trading 43.7% below its estimated GF Value™ of $256.25.
GuruFocus considers Paycom Software to be Significantly Undervalued.
Key valuation signals for PAYC:
Retained Earnings: $2,394 Mil
GF Value™: $256.25 vs. price of $144.22 (43.7% below fair value)
No single metric tells the full story. See the PAYC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1998, Paycom is a human capital management software-as-a-service provider addressing customer requirements surrounding payroll, talent acquisition, talent management, HR management, as well as time and labor. The company services businesses of all sizes within the United States and internationally. The company primarily generates revenue through the sale of subscriptions providing access to its HCM platform. To a lesser extent, the company also generates revenue from implementation services provided to customers as well as interest income generated from customer funds. As of fiscal 2024, the company serviced slightly over 37,500 customers and stored data on over 7 million employees.
81GF Score
Get the complete analysis for PAYC
Retained Earnings is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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