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]