Question · Q1 2026
Kathy Chan asked about the drivers behind the flat pays per control (PPC) in Q1 and the revised flat full-year guidance, seeking confidence that it won't decelerate further. She also inquired about the expected margin dynamic for the rest of the fiscal year, given flat Q1 margins and a maintained full-year expansion target.
Answer
CFO Peter Hadley explained that the flat PPC reflects small movements (tens of basis points) and a narrowing of the guidance range to the lower end (0-1% to flat), based on internal hiring data and a static macro environment. He expressed confidence in the revised guidance given the magnitudes involved. Regarding margins, Peter Hadley stated that Q1 margins beat expectations despite acquisition-related costs. He anticipates a similar net result in Q2, followed by a ramp in the back half of the year driven by business efficiencies and generative AI investments, as the drag from the Workforce Software acquisition anniversary is now behind them.