Financial Performance - Total revenues increased by 7% to $5.175 billion in Q1 Fiscal Year 2026[11], compared to $4.833 billion in Q1 Fiscal Year 2025[11] - Adjusted diluted EPS grew by 7% in Q1 Fiscal Year 2026[11] - Employer Services (ES) revenues increased by 7% to $3.491 billion in Q1 Fiscal Year 2026[15], compared to $3.261 billion in Q1 Fiscal Year 2025[15] - Professional Employer Organization (PEO) revenues increased by 7% to $1.688 billion in Q1 Fiscal Year 2026[24], compared to $1.575 billion in Q1 Fiscal Year 2025[24] Segment Highlights and Outlook - ES margin declined by 50 bps, primarily due to integration and acquisition-related expenses associated with WorkForce Software[16, 18] - The outlook for ES revenues is projected to grow by 5% to 6%[20] - The outlook for PEO revenues is projected to grow by 5% to 7%[28] - Average worksite employees (WSEs) in PEO increased by 2% to 754,000[29] Client Funds and Interest - Average client funds balances were $37.6 billion in Fiscal Year 2025[31] - Client Funds Interest Revenue is expected to be between $1.3 billion and $1.32 billion[31] - Net impact from Client Funds Extended Strategy is projected to be between $1.26 billion and $1.28 billion[31]

Core Insights - ADP has launched ADP® Embedded Payroll, a solution designed for SMB software providers to offer integrated payroll solutions tailored to small business clients [1][4] - The platform supports payroll processing, payments, and tax compliance, leveraging ADP's technology and expertise [1][4] Company Overview - ADP has over 75 years of experience in HR and payroll solutions, continuously addressing business challenges for clients [4][6] - The company serves more than 1.1 million clients across over 140 countries, providing a range of services including HR, Talent, Time Management, Benefits, Compliance, and Payroll [6] Product Features - ADP Embedded Payroll integrates payroll directly into existing business platforms, reducing operational friction and saving time for small business owners [2][4] - The solution offers flexible implementation options, including developer-friendly APIs and ready-to-deploy user interfaces, to accelerate time-to-market for partners [4][5] - It includes enterprise-grade APIs for secure, real-time data exchange, an easy-to-use interface for payroll tasks, and dedicated service teams for customer support [5] Market Positioning - The partnership with Clover enhances the platform's capabilities, allowing small businesses to operate more efficiently and meet customer expectations [2][4] - ADP's omni-channel service is available 24/7, providing partners with go-to-market support and sales tools to improve client retention and overall value proposition [2][4]