Financial Data and Key Metrics Changes - The company reported a 7% revenue growth and a 7% adjusted EPS growth for the first quarter of fiscal 2026 [5][16] - Employer Services segment revenue increased by 7% on a reported basis and 5% on an organic constant currency basis [16] - Client funds interest revenue increased more than anticipated, leading to an increase in the full-year forecast by $10 million to a range of $1.30 to $1.32 billion [17][19] Business Line Data and Key Metrics Changes - Employer Services new business bookings showed solid growth, resulting in record sales volume for a first quarter [5] - PEO revenue growth of 7% exceeded expectations, driven by growth in zero margin pass-throughs and higher wages [7][18] - Employer Services pays per control growth rounded down to 0% for the first quarter, reflecting client caution around adding headcount [6][16] Market Data and Key Metrics Changes - Overall client satisfaction score reached a new all-time high for a first quarter, indicating improvements across business units [6] - The company experienced specific strength in ADP® Lyric HCM, with new business bookings exceeding expectations [9][10] Company Strategy and Development Direction - The company is focused on leading with best-in-class HCM technology, including scaling embedded payroll solutions for small businesses [7][8] - The acquisition of Pequity aims to enhance capabilities in compensation management, supporting complex planning needs for clients [11][62] - The company continues to advance AI initiatives to improve operational efficiency and client engagement [12][13] Management's Comments on Operating Environment and Future Outlook - Management described the HCM demand backdrop as relatively stable, with no significant changes observed in deal cycles [24][25] - The company maintains its full-year growth guidance for Employer Services at 4% to 7% and PEO revenue growth at 5% to 7% [16][18] - Management expressed confidence in achieving strategic goals and delivering strong financial results despite slight declines in retention rates [15][19] Other Important Information - The company announced the acquisition of Pequity, which is expected to enhance its compensation management offerings [11][62] - The company was recognized as a leader in multi-country payroll solutions by industry analysts [15] Q&A Session Summary Question: Update on deal cycles and time to close - Management indicated that the HCM demand backdrop remains stable, with no meaningful changes in deal cycles observed in Q1 [24][25] Question: Confidence in Employer Services guidance amid slight downticks - Management expressed confidence in the guidance, noting that movements are relatively small and offsetting each other [26][28] Question: Surprising areas of new bookings growth - Management highlighted growth in small business services, particularly in retirement services and HR outsourcing [32] Question: Performance of PEO during enrollment period - Management reported the highest participation rates in four years, indicating strong demand for health benefits among targeted industries [57][58] Question: Insights on international market performance - Management described the international market as "lumpy," with solid execution expected to drive growth in the future [68] Question: Impact of processing days on revenue growth - Management noted a modest impact of around $10 million due to one less processing day compared to the previous year [85][89]

Financial Data and Key Metrics Changes - The company reported a 7% revenue growth and a 7% adjusted EPS growth for Q1 2026 [4][14] - Employer Services segment revenue increased by 7% on a reported basis and 5% on an organic constant currency basis [14][15] - Client funds interest revenue increased more than anticipated, leading to an increase in the full-year forecast by $10 million to a range of $1.30 to $1.32 billion [16][18] Business Line Data and Key Metrics Changes - Employer Services new business bookings showed solid growth, resulting in record sales volume for a first quarter [4][5] - PEO revenue growth of 7% exceeded expectations, driven by growth in zero margin pass-throughs and higher wages [5][17] - Employer Services pays per control growth rounded down to 0% for the first quarter, reflecting client caution in adding headcount [5][15] Market Data and Key Metrics Changes - Overall client satisfaction score reached a new all-time high for a first quarter, indicating improvements across business units [5] - The company experienced specific strength in ADP® Lyric HCM, with new business bookings exceeding expectations [8][9] - International markets showed a bit of softness in Q1, attributed to the lumpy nature of large, complex deals [87] Company Strategy and Development Direction - The company is focused on leading with best-in-class HCM technology, including the deployment of ADP Workforce Now® NextGen [7][10] - The acquisition of Pequody aims to enhance capabilities in compensation management, supporting complex planning needs [10][78] - AI initiatives are being advanced to improve client engagement and operational efficiency, with a focus on generative AI [11][12] Management's Comments on Operating Environment and Future Outlook - Management described the HCM demand backdrop as relatively stable, with no significant changes observed in deal cycles [23][24] - The company maintains its full-year growth guidance for Employer Services at 4% to 7% and PEO revenue growth at 5% to 7% [15][17] - Management expressed confidence in achieving the fiscal 2026 consolidated revenue outlook of 5% to 6% growth [18] Other Important Information - The company announced the acquisition of Pequody, which will broaden its capabilities in compensation management [10][78] - The company is committed to expanding its global capabilities, having recently gone live with its first GlobalView client in Costa Rica [13] Q&A Session Summary Question: Update on deal cycles and time to close - Management indicated that the HCM demand backdrop remains stable, with no meaningful changes in deal cycles observed in Q1 [23][24] Question: Confidence in Employer Services guidance amid slight downticks - Management expressed confidence in the guidance, noting that movements are relatively small and offsetting each other [25][27] Question: Surprising areas of new bookings growth - Management highlighted growth in small business services, particularly in retirement services and insurance, as well as continued interest in ADP® Lyric HCM [34] Question: Performance of the PEO and participation rates - Management reported the highest participation rates in four years during the recent enrollment period, indicating strong demand for health benefits [71] Question: Impact of recent layoffs in the market - Management stated that the hiring situation is static, with reduced layoff levels, and these factors are contemplated in their guidance [120]

Core Insights - The ADP employment data indicates a strong job growth in the U.S., with an average weekly increase of 14,250 jobs over the last four weeks, totaling approximately 57,000 jobs [1] - This job growth significantly exceeds the Dallas Fed's estimated breakeven point of 30,000 jobs per month, suggesting a robust labor market [1] - The strong ADP data may lead Federal Reserve Chairman Jerome Powell to adopt a more cautious stance regarding potential interest rate cuts in December, which could be perceived as a hawkish surprise affecting the market [1] - Federal Reserve's most dovish member, Waller, has previously supported rate cuts based on ADP data but emphasizes the need for caution [1]

Core Insights - Automatic Data Processing (ADP) reported quarterly earnings of $2.49 per share, exceeding the Zacks Consensus Estimate of $2.44 per share, and up from $2.33 per share a year ago, representing an earnings surprise of +2.05% [1][2] - The company achieved revenues of $5.18 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.95% and increasing from $4.83 billion year-over-year [2] - ADP has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of ADP's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is $2.61 on revenues of $5.33 billion, and for the current fiscal year, it is $10.92 on revenues of $21.73 billion [7] Industry Context - The Internet - Software industry, to which ADP belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact ADP's stock performance [5][6]

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ADP Earnings Call & Webcast Q1 Fiscal 2026 October 29, 2025 Copyright © 2025 ADP, Inc. DISCLAIMERS FORWARD-LOOKING STATEMENTS This document and other written or oral statements made from time to time by ADP may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by the use of words like "outlook," "expects," "assumes," "projects," "anticipates," "estimates," "we believe," "co ...

Accessibility StatementSkip Navigation Transaction will expand global compensation management offering to address the needs of the dynamic talent market ROSELAND, N.J., Oct. 29, 2025 /PRNewswire/ -- ADP® (Nasdaq: ADP), a global leader in HR and payroll solutions, today announced that it has acquired Pequity, an innovative compensation management software provider founded in 2019. This acquisition will broaden the tools ADP offers to support the complex compensation planning needs of its mid-size, enterpri ...

Group 1 - The company Automatic Data Processing Inc. (ADP) maintained its adjusted earnings and revenue growth guidance for the full-year 2026 [1] - For fiscal 2025, ADP projects adjusted earnings per share growth in a range of 8 to 10 percent on revenue growth of 5 to 6 percent [1] Group 2 - Analysts expect the company to report earnings of $10.92 per share on revenue growth of 5.78 percent, totaling $21.75 billion for the year [2]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - ADP announced its first quarter fiscal 2026 financial results and revised outlook, which will be available on its investor relations website and filed with the SEC [1][2]. Company Overview - ADP is a global leader in HR and payroll solutions, with over 75 years of experience in the industry [3]. - The company serves more than 1.1 million clients across over 140 countries, providing a range of services including HR, Talent, Time Management, Benefits, Compliance, and Payroll [3]. Upcoming Events - A conference call for financial analysts is scheduled for October 29, 2025, at 8:30 a.m. ET, which will be webcast live and available for replay [2].