Payroll software maker Paycom forecasts weak 2026 revenue, shares fall | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]Feb 11 (Reuters) - Paycom Software [(PAYC.N), opens new tab] forecast annual revenue below Wall Street expectations on Wednesday, as businesses delay or reduce HR and payroll software purchases amid tighter budgets, sending its shares down over 7% in extended trading.Macroeconomic challenges could constrain Paycom' ...

Core Insights - Automatic Data Processing is considered undervalued compared to its peers in the Professional Services industry based on PE, PB, and PS ratios, indicating potential investment opportunities [2] - The company demonstrates strong performance in ROE, EBITDA, and gross profit, reflecting efficient operations and profitability [2] - A low revenue growth rate is identified as a potential concern for the company's future prospects within the industry [2] Financial Position - Automatic Data Processing has a lower debt-to-equity ratio of 0.68 compared to its top 4 peers, indicating a stronger financial position and less reliance on debt financing [4] - The favorable balance between debt and equity is viewed positively by investors, suggesting a lower financial risk profile [4]

Core Insights - ADP is a leading provider in the HR and payroll solutions sector, serving over 1.1 million clients globally and focusing on data-driven workplace solutions [1] - The latest ADP National Employment Report shows a positive trend in U.S. private employment, with an average of 6,500 jobs added weekly for the four weeks ending January 24, 2026 [2] - ADP's recent earnings report revealed earnings per share of $2.62 and revenue of approximately $5.36 billion, both exceeding market expectations [3] - Despite positive employment trends and strong financial results, ADP's stock price has seen fluctuations, currently priced at $223.92, down approximately 1.19% [4] - Analyst David Grossman from Stifel Nicolaus has set a price target of $270 for ADP, indicating a potential upside of about 16.7% from the current price [5] Financial Performance - ADP reported earnings per share of $2.62, surpassing the estimated $2.57, and achieved revenue of approximately $5.36 billion, exceeding the estimated $5.34 billion [3][6] - The stock has fluctuated, with a current price of $223.92, reflecting a decrease of about 1.19% [4][6] Employment Trends - The ADP National Employment Report indicates a positive trend in U.S. private employment, with an average of 6,500 jobs added per week [2][6]

adjusted)1/24/20266,5001/17/20265,0001/10/20263,7501/3/20268,25012/27/20254,25012/20/20258,00012/13/20259,50012/6/20252,50011/29/202517,00011/22/202520,0 NER Pulse is an estimate of the week-over-week change in employment based on a four-week moving average. These estimates are based on ADP's finely tuned, high- frequency data. The data is seasonally adjusted and have a two-week lag to allow for more complete and accurate estimates of real-time employment trends.The NER Pulse, including 12 weeks of historic ...

Market Overview - Pre-market futures have shown a recovery from early lows, influenced by Q4 earnings reports and private-sector job numbers, with the Dow up by 142 points and the S&P 500 up by 10 points, while the Nasdaq is down by 66 points [1] Employment Data - Private-sector payrolls for January reported by ADP came in at +22K, significantly below expectations, and down from a revised +37K the previous month, marking the first back-to-back monthly job gains since April and May of the previous year [2] - Services employment accounted for most of the private-sector hires, with +21K in services compared to only +1K in goods-producing sectors; Healthcare Services led with +74K hires, followed by Financial Services with +14K and Construction with +9K, while Professional & Business Services lost -57K jobs [3] - ADP Chief Economist noted that hiring trends are following consumer demand rather than technology advancements, indicating a disconnect between stock market performance and private-sector job growth [4] Sector Insights - The job gains in the Construction sector may hint at increased labor demand due to data-center buildouts, although it is considered premature to draw definitive conclusions [5] - A new ADP methodology revealed a downward adjustment of -212K fewer hires for the private sector in 2025, reducing total expected hires from +771K in 2024 to +398K in 2025, which may provide a clearer picture of the labor market [6] Earnings Reports - Eli Lilly & Co. reported a +7.9% earnings surprise with earnings of $7.54 per share and revenues of $19.29 billion, driven by strong performance in diabetes and weight loss drugs [8] - AbbVie reported earnings of $2.71 per share, exceeding estimates of $2.66, while Novartis reported $2.03 per share, beating consensus by 4 cents; however, AbbVie shares fell by -3% despite the positive earnings [9] - Phillips 66 reported earnings of $2.47 per share, surpassing expectations of $2.11 and significantly improving from a loss of -$0.15 per share in the same quarter last year, with shares up by +1.3% in pre-market trading [10]

Market Overview - Pre-market futures have improved from early lows, influenced by Q4 earnings reports and private-sector job numbers, with the Dow up 142 points and the S&P 500 up 10 points, while the Nasdaq is down 66 points and the Russell 2000 is up 12 points [1] Private Sector Employment - Private-sector payrolls for January reported by ADP show an increase of only 22K, significantly below expectations, and down from a revised 37K the previous month, marking the first back-to-back monthly job gains since April and May of the previous year [2] - The services sector accounted for most of the job gains, adding 21K jobs, while goods-producing sectors only added 1K jobs. Healthcare Services led with 74K hires, followed by Financial Services with 14K and Construction with 9K. Professional & Business Services lost 57K jobs, and Manufacturing has not seen positive job growth since early 2024 [2][3] - A new ADP methodology indicates a downward revision of 212K fewer hires for the entire year of 2025, reducing total private-sector hires from 771K in 2024 to 398K in 2025 [4] Earnings Reports - Eli Lilly & Co. reported a 7.9% earnings surprise with earnings of $7.54 per share and revenues of $19.29 billion, also exceeding estimates by 7.9%, driven by strong performance in diabetes and weight loss drugs [6][7] - AbbVie reported earnings of $2.71 per share, beating estimates of $2.66, while Novartis reported $2.03 per share, surpassing consensus by 4 cents. Novartis shares rose 1.6%, while AbbVie shares fell 3% [7] - Phillips 66 reported earnings of $2.47 per share, exceeding expectations of $2.11 and significantly improving from a loss of $0.15 per share in the same quarter last year, with shares up 1.3% in pre-market trading [8]

ROSELAND, N.J., Feb. 4, 2026 /PRNewswire/ -- Private sector employment increased by 22,000 jobs in January and pay was up 4.5 percent year-over-year according to the January ADP National Employment Report® produced by ADP Research in collaboration with the Stanford Digital Economy Lab ("Stanford Lab"). Continue Reading ADP Research (PRNewsfoto/ADP, Inc.) The ADP National Employment Report is an independent measure of the labor market based on the anonymized weekly payroll data of more than 26 million privat ...

Group 1 - The individual has a master's degree in Analytics and a bachelor's degree in Accounting, with over 10 years of experience in the investment sector, progressing from analyst to management roles [1] - The individual has a personal interest in dividend investing and aims to share insights with the Seeking Alpha community [1] Group 2 - The individual holds long positions in shares of PAYX, NKE, ADP, TROW, and MKC through various financial instruments [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company mentioned [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ______________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number 1-5397 __________________________ AUTOMATIC DATA PROCESSING, INC. (Exact name of registrant as specified in its charter) ____ ...

Core Viewpoint - Automatic Data Processing, Inc. (ADP) is facing challenges in its growth potential due to high valuation and slowing employment trends, despite reporting a revenue increase in its recent financial results [2][3][6]. Financial Performance - For the quarter ending December 2025, ADP reported a revenue of $5.36 billion, reflecting a 6.2% increase from the previous year, but it fell short of the Zacks Consensus Estimate of $5.38 billion, resulting in a negative surprise of 0.47% [4]. - ADP's earnings per share (EPS) for the same quarter was $2.62, surpassing the consensus estimate of $2.58, indicating a positive surprise of 1.62% and growth from the previous year's EPS of $2.35 [4]. Market Position - ADP's current stock price is $254.28, showing a slight decrease of 0.09% or $0.23, with a trading range between $248.30 and $255.73 today [5]. - The company's market capitalization is approximately $102.8 billion, with a trading volume of 1,945,350 shares on the NASDAQ exchange [5]. Analyst Sentiment - Jefferies has maintained an "Underperform" rating for ADP, citing concerns over its high valuation of 22 times earnings and mid single-digit growth potential [2][6]. - The skepticism regarding ADP's Q2 report suggests that analysts do not expect significant share price boosts in the near term [2].