Will a New Sports Partnership Broaden Paylocity’s (PCTY) Competitive Edge in HR Tech?

• Paylocity recently announced a five-year partnership with the New York Islanders and UBS Arena, becoming the Official Human Capital Management Partner and delivering HR and payroll solutions to the team’s business operations.
• This agreement not only extends Paylocity’s footprint in the sports and entertainment sector but also elevates its charitable involvement by supporting youth hockey through the Islanders' Recycle the Game program.
• We’ll explore how providing HR technology to a major sports franchise could shape Paylocity’s outlook and reinforce its presence in new industries.

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Paylocity Holding Investment Narrative Recap

To be a shareholder in Paylocity, you need to believe the company can capture long-term demand for unified HR and payroll solutions as businesses pursue digital transformation, with recurring revenues and cross-sell opportunities driving value. While the recent partnership with the New York Islanders extends Paylocity’s reach in sports and entertainment and provides high-profile validation, it does not shift the biggest short-term catalyst, the broad adoption and upsell of its AI-powered platform and new Finance module, nor does it materially change the key risk of decelerating revenue growth as guided for 2026.

This recent sports partnership echoes Paylocity’s earlier agreement with the Chicago Bulls, where it also provided HR tech and supported a youth outreach initiative. Both demonstrate Paylocity’s push to build brand presence in major markets, but the main driver for near-term upside remains whether the company can accelerate adoption of new products like Paylocity for Finance and reignite its top-line growth trajectory to meet or exceed its guidance.

However, with guidance calling for slower revenue growth, investors should be aware that...

Read the full narrative on Paylocity Holding (it's free!)

Paylocity Holding's narrative projects $2.1 billion in revenue and $380.9 million in earnings by 2028. This requires 9.6% yearly revenue growth and a $153.8 million earnings increase from $227.1 million today.

Uncover how Paylocity Holding's forecasts yield a $220.16 fair value, a 41% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided three fair value estimates for Paylocity ranging from US$190.00 to US$234.78. While opinions cover a wide spread, many are keeping an eye on the risk that Paylocity’s 8-9 percent guided revenue growth for 2026 may point to maturing demand, potentially limiting long-term returns for shareholders with higher expectations.

Explore 3 other fair value estimates on Paylocity Holding - why the stock might be worth as much as 51% more than the current price!

Build Your Own Paylocity Holding Narrative

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• A great starting point for your Paylocity Holding research is our analysis highlighting 4 key rewards that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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