ROSELAND, N.J., Jan. 28, 2026 /PRNewswire/ -- ADP (Nasdaq: ADP), a global leader in HR and payroll solutions, today announced its second quarter fiscal 2026 financial results along with its revised fiscal 2026 outlook through an earnings release available on the company's website at investors.adp.com/events-and- presentations. This earnings release will also be furnished to the Securities and Exchange Commission (SEC) on a Current Report on Form 8-K and available at sec.gov. ADP, the ADP logo, and Always De ...

Second Quarter Segment Results ADP Reports Second Quarter Fiscal 2026 Results ROSELAND, N.J. – January 28, 2026 – ADP (Nasdaq: ADP), a global leader in HR and payroll solutions, today announced its second quarter fiscal 2026 financial results and updated its fiscal 2026 outlook. Second Quarter Fiscal 2026 Consolidated Results Compared to last year's second quarter, revenues increased 6% to $5.4 billion and 5% on an organic constant currency basis. Net earnings increased 10% to $1.1 billion, and adjusted net ...

Group 1 - For the four weeks ending January 3, 2026, U.S. private employers added an average of 7,750 jobs per week, marking a decline in job gains for the third consecutive week [1] - The job gains for the previous weeks were 8,000 for the week ending December 27, 2025, 11,000 for December 20, 2025, and 10,500 for December 13, 2025, indicating a downward trend [1] - The NER Pulse provides a four-week moving average of employment changes, based on ADP's high-frequency data, which is seasonally adjusted and has a two-week lag for accuracy [1] Group 2 - The NER Pulse is published every Tuesday at 8:15 a.m. ET, except during the release of the monthly National Employment Report [2] - The next NER Pulse is scheduled for release on February 10, 2026, with a calendar available on the NER website [3]

Core Insights - Artificial intelligence (AI) is being hailed as one of the most significant technological innovations, comparable to fire, electricity, and the internet, with industry leaders like Bill Gates and Jensen Huang emphasizing its transformative potential [1][2] - There is a growing concern among employees regarding job security due to AI, with surveys indicating that over half of the workforce feels anxious about the impact of AI on their jobs [1] - Jensen Huang argues that AI will not lead to job losses but will create demand for manual labor in sectors like construction and data center development [2] Industry Developments - The human capital management (HCM) industry is tasked with ensuring that AI innovation remains ethical and responsible, while also focusing on enhancing human creativity and connection [3] - The 2025 Artificial Intelligence Index Report from Stanford University highlights that generative AI attracted nearly $34 billion in private investment in 2024, marking an 18.7% increase from the previous year [4] - Adoption rates of AI are rapidly increasing, with 78% of surveyed companies using AI in 2024, reflecting a 55% increase from the previous year, surpassing the early 2000s internet adoption rates [5]

Core Viewpoint - ADP is set to release its second-quarter fiscal 2026 results on January 28, with expectations of solid revenue growth and earnings performance [1][9]. Group 1: Revenue Expectations - The Zacks Consensus Estimate for ADP's total revenue is $5.4 billion, reflecting a year-over-year growth of 6.7% [2][9]. - Employer Services revenues are projected at $3.6 billion, indicating a 5% increase compared to the same quarter last year, driven by strong business bookings [2][9]. - For Professional Employer Organization (PEO) services, revenues are estimated at $1.8 billion, suggesting a 6% year-over-year growth, supported by consistent increases in new business bookings [3]. Group 2: Earnings Projections - The consensus estimate for earnings per share (EPS) is $2.58, which represents a year-over-year growth of 9.8% [4][9]. - Interest on funds held for clients is expected to generate $310 million, indicating a 14% increase from the previous year, attributed to higher client fund balance growth [3][9]. Group 3: Earnings Prediction Model - The current model does not predict a definitive earnings beat for ADP, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [5].

Core Insights - Analysts forecast that Automatic Data Processing (ADP) will report quarterly earnings of $2.58 per share, reflecting a year-over-year increase of 9.8% [1] - Expected revenues for ADP are projected to be $5.38 billion, indicating a 6.7% increase compared to the same quarter last year [1] Earnings Estimates - There has been no revision in the consensus EPS estimate for the quarter over the last 30 days, indicating stability in analysts' forecasts [2] - Revisions to earnings estimates are crucial for predicting investor actions regarding the stock, as trends in these revisions correlate with short-term price performance [3] Revenue Projections - Analysts expect 'Segment revenues- Employer Services' to reach $3.57 billion, a change of +5.3% from the year-ago quarter [5] - 'Revenues- Interest on funds held for clients' are forecasted to be $310.24 million, reflecting a +13.7% change from the previous year [5] - 'Revenues- PEO revenues' are projected to be $1.75 billion, indicating a +5.2% increase from the year-ago quarter [5] - 'Segment revenues- PEO Services' are expected to reach $1.77 billion, a +6.3% change from the prior year [6] - The average prediction for 'Revenues, other than interest on funds held for clients and PEO revenues' is $3.27 billion, showing a +4.9% change from the previous year [6] Employment Metrics - The 'Average paid PEO worksite employees during the period' is projected to be 762, up from 746 reported in the same quarter last year [7] Stock Performance - Over the past month, ADP shares have recorded returns of +0.7%, compared to the Zacks S&P 500 composite's +0.6% change [7] - ADP holds a Zacks Rank 3 (Hold), suggesting it will likely perform in line with the overall market in the upcoming period [7]

Core Viewpoint - Growth investing can be simplified by focusing on dividend stocks, particularly Dividend Kings, which have a long history of increasing payouts and may outperform traditional growth stocks over time [2][6]. Group 1: Dividend Kings - Dividend Kings are companies that have raised their annual per-share dividend payments for at least 50 consecutive years, with only 56 stocks qualifying as of early 2026 [5]. - These companies often represent stable, slow-moving businesses that can provide reliable income and potential for long-term capital appreciation [6]. Group 2: Company Examples - **Automatic Data Processing (ADP)**: - ADP processes payroll for over 1 million corporate customers and is expected to generate $21.8 billion in revenue this fiscal year, a 5.8% increase from the previous year [8]. - The company has a market cap of $103 billion and a dividend yield of 2.48%, with dividends raised for 51 consecutive years [10][12]. - ADP consistently converts 20% to 25% of its revenue into net income, supporting ongoing dividend increases [11]. - **Walmart**: - Walmart has increased its per-share dividend payout for 52 consecutive years and has a market cap of $946 billion [13]. - The current dividend yield is 0.79%, with a stock price increase of 156% over the past three years [15]. - Walmart's extensive reach in the U.S. allows it to maintain significant earnings, funding stock buybacks and sustaining dividends despite low profit margins of 3% to 4% [17]. - **American States Water**: - This utility company has raised its dividend for 70 consecutive years, with an average annual increase of over 8% in the past decade [21]. - The company serves over 1 million people and has a market cap of $2.9 billion, with a forward-looking dividend yield of 2.8% [22][24]. - The growing scarcity of potable water and demand for electricity provide American States Water with strong pricing power [23].

On The Express 🎙️this week with @calebsilver - 'The Real Deal of the Jobs Market', with @NelaRichardson of @ADP and how #AI will change how and what we work on in the very near future. The convo starts at the 9:00 mark. Follow this link to tune in: https://t.co/hBzbgqOBL2 https://t.co/z0rXuMjJoN ...

Group 1 - ADP has been recognized as one of the "World's Most Admired Companies" by FORTUNE magazine for 2026, marking its 20th year on the list [1][2] - The recognition is based on performance in areas such as product and service quality, global business effectiveness, and innovation [1] - Maria Black, ADP's CEO, emphasized the company's commitment to keeping people at the center of its operations, leveraging AI to enhance human creativity and connection [1] Group 2 - FORTUNE collaborates with Korn Ferry to evaluate approximately 1,500 companies, including the largest U.S. companies and non-U.S. companies with revenues of $10 billion or more [2] - The evaluation criteria include investment value, quality of management and products, social responsibility, and talent attraction [2] - A company must rank in the top half of its industry survey to be included in the list [2] Group 3 - The complete list of the "World's Most Admired Companies" will be published in the February/March 2026 issue of FORTUNE magazine, available on newsstands starting February 17th [3] - ADP was also recognized in The Wall Street Journal's Management Top 250 recently [3] Group 4 - ADP has over 75 years of experience in shaping the world of work, providing HR and payroll solutions [4] - The company serves more than 1.1 million clients across over 140 countries, offering a range of services from simple tools for small businesses to integrated platforms for global enterprises [4] - ADP focuses on using AI-driven insights to design innovative solutions that help people achieve greater success at work [4]

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