Overview

* ADP fiscal Q1 revenue grows 7% to $5.2 bln, beating analyst expectations

* Adjusted EPS for fiscal Q1 rises 7% to $2.49, exceeding analyst estimates

* Adjusted EBIT for fiscal Q1 increases 7% to $1.3 bln, surpassing estimates

Outlook

* ADP maintains fiscal 2026 revenue growth guidance of 5% to 6%

* Company expects adjusted diluted EPS growth of 8% to 10% for fiscal 2026

* ADP anticipates PEO Services revenue growth of 5% to 7% in fiscal 2026

Result Drivers

* NEW BUSINESS BOOKINGS - ADP attributes revenue growth to strong new business bookings and high client revenue retention

* AI INTEGRATION - ADP continues to infuse AI into products and operations to enhance client solutions and efficiency

* INTEREST REVENUE - Increased interest on funds held for clients contributed to revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $5.18 $5.13

Revenue bln bln (12

Analysts

)

Q1 Beat $2.49 $2.43

Adjusted (14

EPS Analysts

)

Q1 EPS $2.49

Q1 Net $1 bln

Income

Q1 Beat $1.30 $1.29

Adjusted bln bln (8

EBIT Analysts

)

Q1 25.50%

Adjusted

EBIT

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy."

* Wall Street's median 12-month price target for Automatic Data Processing Inc ( ADP ) is $313.00, about 10.7% above its October 28 closing price of $279.63

* The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 28 three months ago

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)