Core Insights - For the four weeks ending November 8, 2025, U.S. private employers experienced an average job loss of -13,500 jobs per week according to the NER Pulse, which is a weekly update of the ADP National Employment Report [1] Group 1: Employment Data - The NER Pulse provides preliminary estimates of week-over-week changes in U.S. employment based on a four-week moving average, utilizing ADP's high-frequency data [1][3] - The data is seasonally adjusted and released with a two-week lag, indicating a structured approach to employment reporting [1] Group 2: ADP Research and Collaboration - The ADP National Employment Report and the NER Pulse are produced in collaboration with the Stanford Digital Economy Lab, highlighting a partnership aimed at enhancing employment data accuracy [3] - ADP Research focuses on making the future of work more productive through data-driven discovery, serving companies, workers, and policymakers [3] Group 3: ADP Overview - ADP has over 75 years of experience in shaping the world of work, providing HR and payroll solutions to more than 1.1 million clients across over 140 countries [5] - The company emphasizes innovation and expertise, aiming to solve business challenges for clients of all sizes [5]

Core Viewpoint - Automatic Data Processing Inc. (ADP) is a leading company in the human resources and payroll services industry, reporting strong fiscal first-quarter results despite a stock decline [1][2][3]. Financial Performance - ADP reported quarterly revenues of $5.18 billion, exceeding the analyst consensus estimate of $5.14 billion, representing a 7% year-over-year increase [2][6]. - The company's adjusted earnings per share (EPS) were $2.49, surpassing the expected $2.44, while adjusted earnings before interest and taxes (EBIT) rose by 7% to $1.3 billion, maintaining an adjusted EBIT margin of 25.5% [3][6]. - Net earnings increased by 6% year-over-year to $1.01 billion, indicating strong financial performance [3]. Market Position - ADP's market capitalization is approximately $106.65 billion, with a trading volume of 1,047,374 shares on the NASDAQ exchange [5]. - The stock price is currently around $263.28, showing a slight increase of approximately 0.79% or $2.06, with fluctuations between a low of $260.22 and a high of $265.92 during the trading day [4][5]. - Over the past year, the stock has reached a high of $329.93 and a low of $260.22, reflecting some volatility in the market [5]. Cash Position - As of September 30, ADP held $7.94 billion in cash and equivalents, indicating a robust financial position that suggests potential for future growth [4][6].

Core Insights - Automatic Data Processing Inc. (ADP) reported fiscal first-quarter 2026 results that surpassed Wall Street expectations, yet shares declined over 5% during intra-day trading [1] Financial Performance - Adjusted earnings per share were $2.49, exceeding the analyst estimate of $2.44 [2] - Revenue increased by 7% year-over-year to $5.2 billion, surpassing the consensus forecast of $5.14 billion [2] - Net earnings rose by 6% to $1.0 billion, while adjusted EBIT increased by 7% to $1.3 billion, maintaining margins at 25.5% [2] Segment Performance - Employer Services revenue grew by 7% to $3.49 billion [3] - PEO Services revenue also saw a 7% increase to $1.69 billion [3] - The average number of worksite employees paid through PEO Services rose by 2% to approximately 754,000 [3] - Interest on funds held for clients increased by 13% to $287 million, supported by a 7% rise in average client fund balances to $34.9 billion [3] Future Outlook - ADP reaffirmed its fiscal 2026 outlook, projecting revenue growth of 5% to 6% [4] - Expected adjusted EBIT margin expansion of 50 to 70 basis points [4] - Anticipated adjusted EPS growth of 8% to 10% [4]

Core Insights - Automatic Data Processing (ADP) reported a revenue of $5.18 billion for the quarter ended September 2025, reflecting a year-over-year increase of 7.1% [1] - Earnings per share (EPS) for the quarter was $2.49, up from $2.33 in the same quarter last year, exceeding the consensus estimate of $2.44 [1] Financial Performance - The reported revenue of $5.18 billion surpassed the Zacks Consensus Estimate of $5.13 billion, resulting in a surprise of +0.95% [1] - EPS also exceeded expectations with a surprise of +2.05% compared to the consensus estimate [1] - Average paid PEO worksite employees during the period was 754, slightly below the two-analyst average estimate of 757 [4] Segment Revenue Breakdown - Employer Services revenue was $3.49 billion, exceeding the average estimate of $3.45 billion, marking a +7.1% change year-over-year [4] - Interest on funds held for clients generated $286.8 million, surpassing the average estimate of $281.99 million, with a year-over-year increase of +13.2% [4] - Other revenues, excluding interest and PEO revenues, totaled $3.2 billion, exceeding the three-analyst average estimate of $3.17 billion, representing a +6.5% change year-over-year [4] - PEO revenues reached $1.68 billion, slightly above the average estimate of $1.67 billion, with a +7.2% year-over-year change [4] - PEO Services revenue was $1.69 billion, also exceeding the average estimate of $1.68 billion, reflecting a +7.2% change year-over-year [4] - Other segment revenues reported a loss of $-3.5 million, which was worse than the estimated loss of $-3.05 million, but showed a significant year-over-year improvement of +25% [4] Stock Performance - ADP shares have returned -4.7% over the past month, contrasting with the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

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 for client funds interest revenue by $10 million to a range of $1.30 billion 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] - International market performance was described as "lumpy," with a solid pipeline but some softness in the first quarter [68] Company Strategy and Development Direction - The company is focused on leading with best-in-class HCM technology, including the scaling of Embedded Payroll Solutions for small businesses [8][11] - Continued investment in AI initiatives aims to enhance operational efficiency and client engagement [12][14] - The acquisition of Pequity is expected to broaden the company's capabilities in compensation management, aligning with its strategic priorities [10][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the relatively stable HCM demand backdrop and maintained full-year growth guidance of 4%-7% for Employer Services [16][24] - The company anticipates a slight decline in Employer Services retention but remains optimistic about achieving its growth targets [16][18] - Management highlighted the importance of ongoing investments in technology and client services to drive future growth [14][19] Other Important Information - The company announced the acquisition of Pequity, which is expected to enhance its compensation management offerings [10][62] - The company was recognized as a leader in multi-country payroll solutions, underscoring its global capabilities [15] Q&A Session Summary Question: Update on deal cycles and time to close - Management indicated that the demand backdrop remains stable, with no significant changes observed in deal cycles during Q1 [24] Question: Confidence in Employer Services guidance amid slight downticks - Management expressed confidence in the guidance, noting that movements in pays per control and retention are relatively small and offsetting [26][28] Question: Surprising areas of new bookings growth - Management highlighted strong growth in small business services, particularly in retirement services and HR outsourcing [32] Question: Performance of PEO enrollment period - Management reported the highest participation rates in four years, indicating strong demand for health benefits among targeted industries [57] Question: Insights on the recent acquisition - Management emphasized the strategic importance of the acquisition for enhancing compensation management capabilities, although its financial impact is currently minimal [62][64] Question: Differences between U.S. and international markets - Management described international performance as "lumpy," with solid execution expected to drive growth in the future [68] Question: Impact of recent layoffs in the market - Management stated that recent layoffs are not expected to significantly impact guidance, as hiring levels remain static [99]

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]

While reporting financial results for the first quarter on Wednesday, company Automatic Data Processing Inc. (ADP) maintained its adjusted earnings and revenue growth guidance for the full-year 2026.For fiscal 2025, ADP continues to project adjusted earnings per share growth in a range of 8 to 10 percent on revenue growth of 5 to 6 percent.On average, analysts polled expect the company to report earnings of $10.92 per share on revenue growth of 5.78 percent to $21.75 billion for the year. Analysts' estimat ...

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]

Core Insights - Job growth among U.S. small businesses with fewer than 50 employees remains largely unchanged over the last year [1] - The Small Business Jobs Index, a key component of the Paychex report, has fluctuated just over a half percentage point over the last 12 months [1] - Hourly earnings are experiencing growth [1]

Core Insights - Private sector employment increased by 54,000 jobs in August 2025, with a year-over-year pay increase of 4.4% [1][9] - The ADP National Employment Report provides an independent measure of the labor market based on anonymized payroll data from over 26 million private-sector employees in the U.S. [2] Employment Changes - Job growth was primarily in the service-providing sector, which added 42,000 jobs, while the goods-producing sector added 13,000 jobs [5] - The leisure and hospitality industry saw significant growth, adding 50,000 jobs, while construction added 16,000 jobs [4][7] - The report highlighted a month-over-month slowdown in hiring, attributed to factors such as labor shortages and consumer uncertainty [3] Regional Employment Changes - Employment changes by region included: Northeast (+15,000), Midwest (+14,000), South (+4,000), and West (+8,000) [6][8] - Specific regional performance showed variations, with the East North Central region adding 17,000 jobs, while the West North Central region lost 3,000 jobs [7] Establishment Size Impact - Job additions by establishment size were: small establishments (+12,000), medium establishments (+25,000), and large establishments (+18,000) [8] - Large establishments (500+ employees) contributed 18,000 jobs to the overall increase [8] Pay Insights - Year-over-year pay growth for job-stayers was 4.4%, while job-changers experienced a higher growth rate of 7.1% [9][13] - Pay growth varied by industry, with financial activities showing a 5.1% increase and leisure/hospitality at 4.5% [13][20]