11:52 AM EDT, 10/30/2025 (MT Newswires) -- Automatic Data Processing's ( ADP ) fiscal Q1 results showed "resilient" growth even amid unsteady employment trends, RBC Capital Markets said in a note Thursday.

The management services firm reported revenue growth of 7.1% year on year to $5.18 billion, which was above RBC as well as consensus estimates, the note said, adding that the company's outperformance was "broad-based across the segments."

Revenue growth at Automatic Data Processing's ( ADP ) Professional Employer Organization was ahead of estimates, backed by 2% worksite employee growth, RBC said, adding that after a slowdown in fiscal Q4, the company was able to achieve "record bookings."

Meanwhile, the company's margins were flat year on year but were above RBC's forecasts and are expected to increase backed by the company's Workforce Software acquisition as well as efficiencies due to the use of generative AI technology, the note said.

RBC has a sector perform rating on ADP with a $315 price target.

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