ADP Reports Q1 Revenue Up 7% to $5.2 Billion

Reuters
2025/10/29
ADP Reports Q1 Revenue Up 7% to $5.2 Billion

ADP reported first quarter fiscal 2026 results with revenues increasing 7.0% compared to the previous year's first quarter, reaching $5.2 billion. Net earnings rose 6.0% to $1.0 billion, while adjusted net earnings also grew 6.0% to $1.0 billion. Adjusted EBIT increased 7.0% to $1.3 billion, with the adjusted EBIT margin remaining flat at 25.5%. Diluted earnings per share increased 6.0% to $2.49, and adjusted diluted EPS grew 7.0% to $2.49. The company's effective tax rate for the quarter was 22.5% on both a reported and adjusted basis. Employer Services revenues rose 7.0% on a reported basis and 5.0% on an organic constant currency basis, while U.S. pays per control was approximately flat and the Employer Services segment margin decreased by 50 basis points. PEO Services revenues increased 7.0% compared to the prior year's first quarter. ADP maintained its fiscal 2026 consolidated outlook, forecasting revenue growth of 5.0% to 6.0%, adjusted EBIT margin expansion of 50 to 70 basis points, and adjusted diluted EPS growth of 8.0% to 10.0%. The company highlighted continued strategic investments in AI and technology, along with record client satisfaction and strong client revenue retention.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. ADP - Automatic Data Processing Inc. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0000008670-25-000042), on October 29, 2025, and is solely responsible for the information contained therein.

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