ADP(US:ADP) ZACKS·2026-01-28 15:31Core Insights - Automatic Data Processing (ADP) reported a revenue of $5.36 billion for the quarter ended December 2025, reflecting a year-over-year increase of 6.2% [1] - The earnings per share (EPS) for the same period was $2.62, compared to $2.35 a year ago, indicating a positive growth in profitability [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $5.38 billion, resulting in a revenue surprise of -0.47%, while the EPS exceeded the consensus estimate of $2.58, yielding an EPS surprise of +1.62% [1] Financial Performance Metrics - Average paid PEO worksite employees during the period were 758, slightly below the two-analyst average estimate of 762 [4] - Employer Services segment revenues reached $3.61 billion, surpassing the four-analyst average estimate of $3.57 billion, marking a year-over-year increase of 6.5% [4] - Interest on funds held for clients generated revenues of $308.6 million, slightly below the four-analyst average estimate of $310.24 million, but still reflecting a year-over-year growth of 13.1% [4] - Other revenues, excluding interest on funds held for clients and PEO revenues, totaled $3.3 billion, exceeding the three-analyst average estimate of $3.27 billion, with a year-over-year increase of 5.9% [4] - PEO revenues were reported at $1.75 billion, matching the average estimate based on three analysts, and showing a year-over-year increase of 5.5% [4] - PEO Services segment revenues were $1.76 billion, slightly below the three-analyst average estimate of $1.77 billion, with a year-over-year change of 5.5% [4] - The Other segment reported revenues of -$3.3 million, better than the estimated -$3.58 million, but reflecting a year-over-year decline of 2.9% [4] Stock Performance - ADP shares have returned -1.9% over the past month, contrasting with the Zacks S&P 500 composite's increase of +0.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]