Paymentus Holdings, Inc. (PAY) experienced a significant intraday decline of 9.75% on Tuesday, as the stock continued its downward trajectory following disappointing financial guidance and multiple analyst price target reductions.
The sharp decline follows the company's release of its fourth-quarter and full-year 2025 results, which included forward-looking revenue guidance for fiscal year 2026 that fell short of analyst expectations. Paymentus projected revenue between $1.39 billion and $1.41 billion, below the approximately $1.43 billion anticipated by market analysts.
In response to the guidance disappointment, several analysts adjusted their price targets downward. Wedbush reduced its target to $32 from $40 while maintaining its outperform rating, and JP Morgan made a more significant cut to $27 from $38. The combination of weaker-than-expected revenue projections and reduced price targets triggered the substantial sell-off during Tuesday's trading session.
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