Core Insights - Automatic Data Processing Inc. (ADP) reported fiscal first-quarter results with revenues of $5.18 billion, exceeding analyst expectations of $5.14 billion, marking a 7% year-over-year increase [1][2] - The company’s adjusted EPS was $2.49, surpassing the consensus estimate of $2.44 [2] - ADP's Employer Services and PEO segments both saw a 7% revenue increase, with Employer Services at $3.49 billion and PEO Services at $1.69 billion [2] Financial Performance - Adjusted EBIT rose 7% to $1.3 billion, maintaining an adjusted EBIT margin of 25.5% [3] - Net earnings increased by 6% year-over-year to $1.01 billion [3] - As of September 30, ADP held $7.94 billion in cash and equivalents [3] Strategic Developments - ADP acquired Pequity, a compensation management software company, although financial terms were not disclosed [3] - The integration of Pequity's platform aims to enhance ADP's compensation management capabilities through AI-driven insights and budgeting tools [4] Management Commentary - CEO Maria Black highlighted record client satisfaction and high retention rates, alongside the expansion of AI in products and operations [5] - CFO Peter Hadley noted that first-quarter revenue and margins exceeded expectations due to strong new business bookings and client retention [5] Future Outlook - ADP maintained its revenue growth outlook for FY26 at 5%-6%, equating to $21.6 billion-$21.8 billion, aligning with the analyst consensus estimate of $21.8 billion [5] - The adjusted diluted EPS growth forecast is set at 8%-10%, or $10.81-$11.01, compared to the analyst consensus estimate of $10.92 [5] Stock Performance - ADP's stock price decreased by 5.19% to $265.12 following the earnings report [6]