While reporting financial results for the second quarter on Wednesday, company Automatic Data Processing Inc. (ADP) boosts its adjusted earnings and revenue growth guidance for the full-year 2026.For fiscal 2025, ADP now projects earnings per share and adjusted earnings per share growth in a range of 9 to 10 percent on revenue growth of about 6 percent.On average, analysts polled expect the company to report earnings of $10.92 per share on revenue growth of 5.82 percent to $21.76 billion for the year. Anal ...

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 ...

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 - 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]

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]

Core Insights - The NER Pulse indicates that U.S. private employers added an average of 8,000 jobs per week for the four weeks ending December 27, 2025, reflecting a modest slowdown in hiring during the last week of 2025 [1]. Employment Data Summary - The four-week moving average of job additions showed the following weekly changes: - Week ending 12/27/2025: 8,000 jobs - Week ending 12/20/2025: 11,250 jobs - Week ending 12/13/2025: 10,250 jobs - Week ending 12/6/2025: 8,750 jobs - Week ending 11/29/2025: 13,250 jobs - Week ending 11/22/2025: 3,750 jobs - Week ending 11/15/2025: -8,500 jobs - Week ending 11/8/2025: -11,750 jobs - Week ending 11/1/2025: -7,500 jobs - Week ending 10/25/2025: -4,750 jobs - Week ending 10/18/2025: 11,500 jobs - Week ending 10/11/2025: 10,250 jobs [1]. NER Pulse Release Information - The NER Pulse is published every Tuesday at 8:15 a.m. ET, except during the weeks when the monthly National Employment Report is released [2]. - The next NER Pulse is scheduled for release on January 27, 2026 [3]. About ADP Research - ADP Research aims to enhance workplace productivity through data-driven insights, providing valuable information for companies, workers, and policymakers [4]. - ADP has over 75 years of experience in HR and payroll solutions, serving more than 1.1 million clients across 140+ countries [5].

Core Insights - Fenimore Asset Management's Q4 2025 investor letter indicates a solid yet volatile stock market, influenced by AI enthusiasm, economic uncertainty, and monetary policy concerns [1] - The firm anticipates mixed market conditions in 2026, with many AI-related stocks appearing expensive while high-quality companies are trading at multi-year lows, presenting potential investment opportunities [1] Market Performance - The S&P 500 Index rose by 2.66% in Q4 2025, driven by large-cap technology and communication services stocks [1] - Fenimore Small Cap Strategy returned -4.12%, underperforming the Russell 2000 Index, which returned 2.19% [1] - Fenimore Dividend Focus Strategy declined by -4.41% compared to the Russell Midcap Index's 0.16% return [1] - Fenimore Value Strategy saw a decline of -1.17% against the Russell Midcap Index's 0.16% return [1] Company Focus: Paychex, Inc. - Paychex, Inc. (NASDAQ:PAYX) was highlighted as a key performance detractor in the Fenimore Dividend Focus Strategy [2] - As of January 15, 2026, Paychex, Inc. stock closed at $110.51, with a one-month return of -1.58% and a 52-week loss of 24.46% [2] - Paychex, Inc. has a market capitalization of $39.669 billion [2] Performance Analysis of Paychex, Inc. - Despite reporting strong earnings that exceeded expectations, Paychex, Inc. stock sold off by 10% due to economic concerns, impacting the near-term outlook [3] - Weak employment numbers for small and midsized businesses have pressured the stock [3]

Core Thesis - The bullish thesis on Automatic Data Processing, Inc. (ADP) emphasizes its position as a high-quality, mission-critical services company with a strong business model characterized by recurring revenue and deep customer entrenchment [2][7] Business Model - ADP's core earnings power is derived from Employer Services, where clients pay recurring fees for payroll processing, tax filing, and essential HR functions [2] - The company boasts a 92.1% revenue retention rate, indicating that customers rarely leave once onboarded [3] - ADP earns interest income on approximately $31 billion of held client funds, generating about $1.2 billion of high-margin income in fiscal 2025 [3] Financial Performance - ADP efficiently converts earnings to cash, producing nearly $4.9 billion in operating cash flow on $4.1 billion of net income with minimal capital spending [5] - The company's margins may fluctuate due to investments in sales and product development, but these are seen as reinvestments to maintain a resilient franchise rather than signs of structural weakness [6] Market Position - ADP operates a co-employment model through its PEO segment, which can inflate reported revenue but still reflects meaningful economic revenue and margins [4] - The business is predominantly U.S.-based, with international payroll adding complexity that strengthens customer reliance and creates long-term margin expansion opportunities [4] - The company's competitive advantage is supported by high switching costs, regulatory complexity, and a broad distribution network that consistently generates new client wins [5]

Group 1 - Automatic Data Processing, Inc. (ADP) announced a new stock buyback authorization of $6 billion, replacing the previous $5 billion authorization from 2022 [1] - As of December 31, 2025, ADP had approximately 403 million common shares outstanding [1] Group 2 - ADP has over 75 years of experience in HR and payroll solutions, serving more than 1.1 million clients across 140+ countries [2] - The company focuses on innovation and expertise to address business challenges, offering tools for small businesses to integrated platforms for global enterprises [2] - ADP emphasizes its commitment to people through AI-driven insights and innovative solutions in HR, Talent, Time Management, Benefits, Compliance, and Payroll [2]

Core Insights - Private sector employment increased by 41,000 jobs in December, with a year-over-year pay increase of 4.4% [1][10] - 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 - The increase in jobs was primarily driven by the education and health services, and leisure and hospitality sectors [5] - The breakdown of job changes by industry shows a loss of 3,000 jobs in goods-producing sectors and a gain of 44,000 jobs in service-providing sectors [6] - Regional job changes included gains of 40,000 in the Northeast, 9,000 in the Midwest, and 54,000 in the South, while the West saw a loss of 61,000 jobs [7][9] Industry-Specific Insights - Notable job changes by industry included: - Education/health services: +39,000 - Leisure/hospitality: +24,000 - Professional/business services: -29,000 - Manufacturing: -5,000 [8] Pay Insights - Pay growth for job-stayers remained at 4.4% year-over-year, while pay growth for job-changers increased to 6.6% from 6.3% [10] - Median pay changes for job-stayers varied by industry, with financial activities at 5.2% and leisure/hospitality at 4.5% [14] - Pay growth for job-stayers by firm size showed small firms at 2.3%, medium firms at 4.6%, and large firms at 4.8% [21]