Automatic Data Processing ( (ADP) ) has released its Q1 earnings. Here is a breakdown of the information Automatic Data Processing presented to its investors.
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Automatic Data Processing (ADP) is a global leader in HR and payroll solutions, providing a wide range of services from simple tools for small businesses to integrated platforms for large enterprises, with a focus on innovation and AI-driven insights.
ADP has reported a strong start to fiscal 2026, with a 7% increase in revenues reaching $5.2 billion and a 6% rise in net earnings to $1.0 billion. The company also saw a 7% growth in adjusted EBIT, maintaining a margin of 25.5%, and a 6% increase in diluted earnings per share to $2.49.
Key highlights from the earnings report include a 7% revenue growth in both Employer Services and PEO Services. ADP’s client funds strategy also performed well, with a 13% increase in interest on funds held for clients, driven by a 7% rise in average client funds balances. The company continues to invest strategically, focusing on AI integration to enhance client satisfaction and retention.
Looking ahead, ADP maintains its fiscal 2026 outlook, anticipating revenue growth of 5% to 6% and adjusted diluted EPS growth of 8% to 10%. The company remains committed to strategic investments to support long-term growth and deliver strong financial performance.