ADP Reports First Quarter Fiscal 2026 Results ROSELAND, N.J. – October 29, 2025 – ADP (Nasdaq: ADP), a global leader in HR and payroll solutions, today announced its first quarter fiscal 2026 financial results and updated its fiscal 2026 outlook. First Quarter Fiscal 2026 Consolidated Results Compared to last year's first quarter, revenues increased 7% to $5.2 billion and 6% on an organic constant currency basis. Net earnings increased 6% to $1.0 billion, and adjusted net earnings increased 6% to $1.0 billi ...

Performance Overview - The Dividend Kings experienced a decline of 1.58% in September, underperforming the SPDR S&P 500 ETF (SPY) by 4.47% [1] Current Month Performance - The performance in the current month is not showing improvement compared to previous results [1]

Core Insights - ADP has launched a new data release mechanism to provide preliminary estimates of private sector employment on a weekly basis, starting from October 29, 2025 [1] - The initial data indicates an average of 14,250 new jobs added weekly in the private sector, based on a four-week moving average from over 26 million anonymous payroll records [1] - This weekly data will serve as a leading indicator for ADP's traditional monthly employment report, which will continue to be released on the first Wednesday of each month [1] Group 1 - The introduction of weekly employment data aims to provide a more timely reference for labor market dynamics [1] - The next monthly employment report is scheduled for November 5, 2025, and will include detailed employment metrics across industry distribution, company size, and geographic dimensions [1] - ADP's Chief Economist highlighted the importance of near real-time data in providing a clearer view of the labor market during critical economic periods [1] Group 2 - Subsequent weekly preliminary estimates will be updated on November 11, 18, and 25, 2025 [1] - The weekly data is designed to enhance market sensitivity to changes in employment trends, especially in a context where economic policy heavily relies on data [1]

Group 1 - ADP Research will begin releasing weekly U.S. employment data to provide high-frequency insights into the labor market, supplementing its monthly reports [2][3] - The average new employment figure for the four weeks ending October 11 was 14,250, covering about 20% of the U.S. private sector workforce [3] - The release of this data comes amid a government shutdown, making third-party data sources increasingly valuable as official statistics are paused [3][4] Group 2 - ADP's Chief Economist Nela Richardson stated that the new weekly employment data will offer a clearer picture of the labor market during this critical economic period [4] - There is a general expectation that Federal Reserve officials will lower interest rates in response to a cooling labor market, as hiring has slowed and demand for workers has eased [4] - ADP's data is compiled in collaboration with the Stanford Digital Economy Lab, based on weekly payroll data from over 26 million private sector employees [4]

Group 1 - The core point of the article highlights a strong rebound in private sector employment, with an average of 14,250 new jobs added weekly over the past four weeks, contrasting with negative growth in September [1][2] - The data is based on a collaboration between ADP and Stanford Digital Economy Lab, utilizing weekly salary records from over 26 million private sector employees [1] - ADP's Chief Economist, Nela Richardson, emphasizes that the near real-time employment data will provide clearer insights into the labor market during this critical economic period [1] Group 2 - The weekly addition of 14,250 jobs translates to an average monthly employment growth of approximately 55,000 jobs, a significant improvement compared to a decrease of 32,000 jobs reported in September's National Employment Report (NER) [2] - ADP plans to continue releasing a final monthly estimate, with the next NER scheduled for November 5, 2025, at 8:15 AM Eastern Time [2] - The next preliminary estimate for private sector weekly employment will be published on November 11 at 8:15 AM [2]

Group 1 - ADP has announced the launch of a weekly preliminary estimate of the National Employment Report to track U.S. labor market dynamics more frequently, starting this week [1] - The first report indicates an average increase of 14,250 private sector jobs over the four weeks ending October 11, 2025 [1] - The new weekly report will be released every Tuesday at 8:15 AM ET, providing a four-week moving average of private sector employment changes [1] Group 2 - The existing monthly National Employment Report will continue to be published on the first Wednesday of each month, providing detailed data across various dimensions [2] - Major financial institutions, including Goldman Sachs and Bank of America, have indicated that the U.S. labor market is steadily losing growth momentum, supported by ADP's data [2] - The accelerated selection process for the next Federal Reserve Chair by President Trump may allow the White House to influence monetary policy ahead of schedule [2]

Core Insights - ADP has announced a preliminary U.S. estimate indicating an average increase of 14,250 jobs in the four weeks ending on October 11, 2025, providing a timely view of the labor market [3][4]. Employment Data Release - ADP will release a weekly preliminary estimate of private sector employment every Tuesday, starting from October 28, 2025, to offer a directional indicator of the labor market [1][4]. - A comprehensive monthly jobs report will continue to be released on the first Wednesday of each month, based on anonymized payroll data from over 26 million private-sector employees in the U.S. [2][4]. Methodology and Collaboration - The preliminary estimate is based on ADP's high-frequency data and is produced in collaboration with the Stanford Digital Economy Lab, ensuring a dynamic view of job creation and loss [3][4]. - ADP's data is derived from anonymized and aggregated administrative data on private-sector payrolls, providing a detailed picture of employment changes [4][6]. Future Reporting Schedule - The next monthly ADP National Employment Report will be released on November 5, 2025, followed by subsequent weekly preliminary estimates on November 11, 18, and 25, 2025 [5][6].

Group 1 - Automatic Data Processing, Inc. (ADP) has seen its stock price decline from $329 to $283, prompting discussions about its performance and future outlook [1] - Jim Cramer expressed confidence in ADP, suggesting investors should hold onto their shares despite recent negative research [1] - The company is recognized for its cloud-based human capital management solutions, which automate payroll, HR, and workforce functions [2] Group 2 - Since a recent comment by Cramer, ADP's stock has dropped over 4.5%, indicating market volatility and investor sentiment [2] - There is a belief that certain AI stocks may present better investment opportunities compared to ADP, highlighting a competitive landscape in the tech sector [3]

Core Insights - ADP is set to release its first-quarter fiscal 2026 results on October 29, with a history of surpassing earnings estimates, averaging a surprise of 3.7% over the last four quarters [1] Revenue Expectations - The Zacks Consensus Estimate for ADP's revenue is $5.1 billion, reflecting a year-over-year growth of 6.1% [2] - Employer Services revenue is expected to be $3.4 billion, indicating a 5% increase from the previous year [2] - Professional Employer Organization (PEO) services are projected to generate $1.7 billion in revenue, suggesting a 7.3% year-over-year growth [3] Earnings Projections - Interest on funds held for clients is estimated at $294.4 million, representing a 16.3% increase from the prior year [3] - The average paid PEO worksite employees for the quarter is projected to be 759, with a 1% change in pay per control anticipated [4] - Earnings per share (EPS) is estimated at $2.44, indicating a year-over-year growth of 4.7% [4] Earnings Prediction Model - The current model does not predict a definitive earnings beat for ADP, with an Earnings ESP of +1.80% and a Zacks Rank of 4 (Sell) [5] Comparison with Other Companies - Western Digital is expected to report revenues of $2.7 billion, a 34% year-over-year decline, with an EPS consensus of $1.58, reflecting an 11.2% decrease [7] - Seagate Technology anticipates revenues of $2.5 billion, indicating a 16.7% year-over-year increase, with an EPS consensus of $2.36, suggesting a 49.4% growth [10]

Core Viewpoint - Wall Street analysts anticipate Automatic Data Processing (ADP) to report quarterly earnings of $2.44 per share, reflecting a year-over-year increase of 4.7%, with revenues expected to reach $5.13 billion, up 6.1% from the previous year [1] Earnings Projections - The consensus EPS estimate for the quarter has been revised downward by 0.1% over the past 30 days, indicating a collective reassessment by analysts [1][2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [2] Revenue Estimates - The consensus estimate for 'Segment revenues- Employer Services' is $3.45 billion, showing a year-over-year change of +5.7% [4] - 'Revenues- Interest on funds held for clients' is estimated at $281.99 million, indicating a year-over-year change of +11.3% [4] - 'Revenues- PEO revenues' are projected to reach $1.67 billion, reflecting a year-over-year change of +6.3% [4] - 'Segment revenues- PEO Services' are forecasted to be $1.68 billion, with a year-over-year change of +6.7% [5] - 'Revenues, other than interest on funds held for clients and PEO revenues' are expected to total $3.17 billion, indicating a year-over-year change of +5.3% [5] Key Metrics - The average paid PEO worksite employees during the period is estimated to be 757, compared to 737 in the previous year [6] - ADP shares have decreased by 2.5% in the past month, contrasting with the Zacks S&P 500 composite's increase of 1.3% [6] - ADP holds a Zacks Rank 4 (Sell), suggesting expected underperformance relative to the overall market in the near term [6]