Core Insights - ADP is set to release its first-quarter fiscal 2026 results on October 29, with a history of surpassing earnings estimates, averaging a surprise of 3.7% over the last four quarters [1] Revenue Expectations - The Zacks Consensus Estimate for ADP's revenue is $5.1 billion, reflecting a year-over-year growth of 6.1% [2] - Employer Services revenue is expected to be $3.4 billion, indicating a 5% increase from the previous year [2] - Professional Employer Organization (PEO) services are projected to generate $1.7 billion in revenue, suggesting a 7.3% year-over-year growth [3] Earnings Projections - Interest on funds held for clients is estimated at $294.4 million, representing a 16.3% increase from the prior year [3] - The average paid PEO worksite employees for the quarter is projected to be 759, with a 1% change in pay per control anticipated [4] - Earnings per share (EPS) is estimated at $2.44, indicating a year-over-year growth of 4.7% [4] Earnings Prediction Model - The current model does not predict a definitive earnings beat for ADP, with an Earnings ESP of +1.80% and a Zacks Rank of 4 (Sell) [5] Comparison with Other Companies - Western Digital is expected to report revenues of $2.7 billion, a 34% year-over-year decline, with an EPS consensus of $1.58, reflecting an 11.2% decrease [7] - Seagate Technology anticipates revenues of $2.5 billion, indicating a 16.7% year-over-year increase, with an EPS consensus of $2.36, suggesting a 49.4% growth [10]

Core Insights - Automatic Data Processing, Inc. (ADP) is set to release its fourth-quarter fiscal 2025 results on July 30, with a history of surpassing earnings estimates, averaging a surprise of 3.5% over the last four quarters [1][5]. Revenue Expectations - The Zacks Consensus Estimate for ADP's revenue is $5.1 billion, reflecting a 5.9% year-over-year increase, driven by growth across various segments [2][10]. - Revenue from Employer Services is estimated at $3.4 billion, indicating a 5.7% increase from the previous year, supported by strong business bookings [2][10]. - Professional Employer Organization (PEO) services are projected to generate $1.6 billion in revenue, representing a 5.6% year-over-year growth, attributed to higher wages and strong client retention [3][10]. - Interest on funds held for clients is expected to be $287.9 million, a 4% rise from the prior year, benefiting from a stronger average client funds balance [3]. Earnings Projections - The consensus estimate for earnings per share is $2.22, suggesting a 6.2% increase year-over-year, supported by strong revenue growth and disciplined cost control [4]. - The average number of paid PEO worksite employees is estimated at 762, with a minimal change of 0.1% in pay per control anticipated for the quarter [4]. Earnings Prediction Model - Current analysis indicates that ADP does not conclusively predict an earnings beat, with an Earnings ESP of -0.53% and a Zacks Rank of 3 (Hold) [5][6].