Mizuho Securities has maintained its optimistic stance on Paylocity Holding Corporation (PCTY), reiterating a 'Buy' rating and setting a price target of $150.00. This affirmation comes on the heels of Paylocity's impressive fiscal second-quarter 2026 financial performance, which highlighted substantial revenue growth and strong operational cash flows.
The company's recent earnings report, released on February 5, revealed a robust financial picture. Paylocity reported recurring and other revenue of $387.0 million, marking an 11.3% increase from the previous year. Furthermore, the total revenue for the quarter reached $416.1 million, demonstrating a healthy 10.4% growth compared to fiscal Q2 2025. The positive financial indicators were further bolstered by continuous growth in cash flows, with the trailing twelve months showing a net cash provided by operating activities margin of 28.3% and a free cash flow margin of 23.6%.
Following these encouraging results, several other financial firms also adjusted their outlooks for Paylocity. Baird updated its price target to $220 from $245, while maintaining an 'Outperform' rating, citing the company's significant advancements in margins and free cash flow. Similarly, TD Cowen adjusted its price target to $178 from $188, also retaining a 'Buy' rating, and commended Paylocity's respectable fiscal Q2 performance and its confident position regarding AI displacement and undervalued market standing.
Paylocity Holding Corporation specializes in developing and delivering comprehensive cloud-based software solutions, encompassing payroll, human capital management, benefits administration, time and labor tracking, and talent management. The consistent positive analyst sentiment, underpinned by strong financial results and strategic positioning in the market, paints a promising future for Paylocity, reinforcing its appeal as a noteworthy investment in the technology sector.