AUTOMATIC DATA PROCESSING (ADP) Company Report

ADP’s November report shows US private employers unexpectedly shed 32,000 jobs, the largest monthly decline in years, led by small businesses under 49 employees.
Education and health services sectors added jobs, contrasting with declines in manufacturing, construction, professional/business services, and information services.
The labor market softness has driven odds of a 25 basis point Federal Reserve rate cut in December to nearly 90%.
Official government employment and inflation data for October and November have been delayed by the shutdown, increasing reliance on ADP’s partial report as a key indicator.

1 day ago

WSJ

ADP reports November 2025 private sector job loss

ADP

Hiring

Demand Weakening

Private‐sector employment declined by 32,000 jobs in November 2025, with the largest pullback at small establishments (1–49 employees).
Year-over-year pay growth slowed to 4.4% for job-stayers and 6.3% for job-changers in November 2025.
Job losses were concentrated in manufacturing, professional and business services, information, and construction sectors.
October 2025 job gains were revised upward from 42,000 to 47,000.

1 day ago

Press Release

ADP raises quarterly dividend to $1.70, marking 51st year of increases

ADP

Dividends

Board approves 10% increase in the quarterly cash dividend, lifting the annual rate to $6.80 per share
Marks 51st consecutive year of dividend increases, underscoring the board’s confidence in ADP’s financial strength
New quarterly dividend of $1.70 per share payable January 1, 2026 to shareholders of record December 12, 2025

Nov 12, 2025, 1:00 PM

Press Release

ADP data shows US private sector lost over 11,000 jobs weekly through late October 2025

ADP

Layoffs

Hiring

Demand Weakening

ADP weekly payroll estimates reveal U.S. private-sector employers shed an average of 11,000 jobs per week through late October, the first decline since August.
Earlier in October, private-sector employment had rebounded modestly with 42,000 jobs added, led by education, healthcare, trade, transportation and utilities.
Job losses continued for a third straight month in professional and business services, information and leisure and hospitality sectors.
The data arrive amid delayed government employment statistics due to the shutdown, increasing reliance on private reports and influencing Federal Reserve rate-cut considerations.

Nov 11, 2025, 1:43 PM

Bloomberg

ADP: October 2025 private sector employment up 42,000; pay growth steady at 4.5%

ADP

Hiring

Private sector employment rose by 42,000 jobs in October, marking a rebound from two months of weak hiring.
Year-over-year pay growth held steady at 4.5% for job-stayers and 6.7% for job-changers.
Service-providing sectors drove gains with 33,000 new jobs, led by trade/transportation/utilities and education/health services.
Small and medium establishments saw net losses of 10,000 and 21,000 jobs, respectively, while large firms (500+ employees) added 73,000 jobs.

Nov 5, 2025, 1:15 PM

Press Release

ADP reports Q1 FY2026 earnings

ADP

Earnings

Guidance Update

M&A

Delivered 7% revenue growth and 7% adjusted EPS growth in Q1 FY2026.
Employer Services revenue rose 7% reported (5% organic) and PEO revenue grew 7%, with ADP reaffirming full-year consolidated revenue growth of 5–6% and adjusted EPS growth of 8–10%.
Raised full-year client funds interest revenue guidance by $10 million to $1.30–1.32 billion, forecasting average client funds balance growth of 3–4% and a yield near 3.4%.
Advanced strategic initiatives: scaling embedded payroll for small businesses, launched a benefits recommendation tool, achieved >80% adoption of NextGen Workforce Now in new mid-market clients, accelerated Lyric HCM bookings, acquired Pequody, and expanded AI-powered ADP Assist usage.
Q1 margins impacted by integration costs: Employer Services margin down 50 bps, PEO margin down 140 bps, while full-year adjusted EBIT margin expansion of 50–70 bps is maintained.

Oct 29, 2025, 12:30 PM

Transcript

ADP reports Q1 FY2026 results

ADP

Earnings

Guidance Update

M&A

ADP delivered 7% revenue growth and 7% adjusted EPS growth in Q1 FY2026, driven by record Employer Services new business bookings and stable HCM demand.
Employer Services revenue rose 7% reported (5% organic) and PEO revenue grew 7%; ADP maintained full-year guidance of 5–6% consolidated revenue growth, 50–70 bps EBIT margin expansion, and 8–10% adjusted EPS growth.
Product adoption accelerated: NextGen Workforce Now was selected by over 80% of new mid-market clients, Lyric HCM bookings exceeded expectations, and ADP acquired Pequity to enhance compensation management offerings.
AI initiatives expanded, with 5.5 million ADP Assist client conversations over the past year and generative AI tools rolled out across sales and service teams to boost productivity and client support.

Oct 29, 2025, 12:30 PM

Transcript

ADP reports Q1 2026 results

ADP

Earnings

Guidance Update

M&A

Delivered 7% revenue growth and 7% adjusted EPS growth in Q1 2026.
Maintained fiscal 2026 guidance: consolidated revenue growth of 5%–6%, adjusted EPS growth of 8%–10%, and raised client funds interest revenue forecast with balances to grow 3%–4% at ~3.4% yield.
Employer Services revenue up 7% (5% organic) with record Q1 new business bookings, flat pays per control, slight retention decline; PEO revenue up 7% with average worksite employee growth of 2%.
Advanced strategic priorities: scaling Embedded Payroll in small business, launched benefits recommendation and digital ICHRA tools; mid-market adoption of Workforce Now NextGen at 80%, and strong ADP Lyric HCM bookings momentum.
Completed Workforce Software integration (margin impact), acquired Pequity compensation software, and expanded AI with ADP Assist achieving 5.5 M client conversations, plus AI tools for sales and development teams.

Oct 29, 2025, 12:30 PM

Transcript

ADP reports Q1 Fiscal 2026 results

ADP

Earnings

Guidance Update

ADP delivered 7% revenue growth and 7% adjusted diluted EPS growth in Q1 FY2026.
Employer Services revenue rose 7% with 6% organic constant currency growth and a 50 bps margin decline.
PEO Services revenue increased 7% alongside a 140 bps margin decline.
Fiscal 2026 outlook: total revenues expected to grow 5–6%, and adjusted diluted EPS to increase 8–10%.

Oct 29, 2025, 12:30 PM

Presentation

ADP acquires compensation management software provider Pequity

ADP

M&A

ADP (Nasdaq: ADP) announced the acquisition of Pequity, a compensation management software provider founded in 2019, to expand its global compensation management offering ( ).
The deal integrates Pequity’s AI-enhanced insights, flexible spreadsheet-style configurations, budgeting and scenario-planning tools, and HCM ecosystem integrations into ADP’s product suite ( ).
The acquisition addresses evolving pay transparency laws and growing demand for deeper analytics and flexible compensation planning among mid-size to multinational clients ( ).

Oct 29, 2025, 12:00 PM

Press Release

Earnings Transcripts

Quarterly earnings call transcripts for AUTOMATIC DATA PROCESSING.

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