Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - ADP announced its first quarter fiscal 2026 financial results and revised outlook, which will be available on its investor relations website and filed with the SEC [1][2]. Company Overview - ADP is a global leader in HR and payroll solutions, with over 75 years of experience in the industry [3]. - The company serves more than 1.1 million clients across over 140 countries, providing a range of services including HR, Talent, Time Management, Benefits, Compliance, and Payroll [3]. Upcoming Events - A conference call for financial analysts is scheduled for October 29, 2025, at 8:30 a.m. ET, which will be webcast live and available for replay [2].

Financial Performance - Revenues increased 7% year-over-year to $5.2 billion, with a 6% increase on an organic constant currency basis[2] - Net earnings rose 6% to $1.0 billion, and adjusted net earnings also increased 6% to $1.0 billion[4] - Adjusted EBIT increased 7% to $1.3 billion, maintaining an adjusted EBIT margin of 25.5%[4] - Diluted EPS grew 6% to $2.49, with adjusted diluted EPS also increasing 7% to $2.49[4] - Total revenues for the three months ended September 30, 2025, increased by 7% to $5,175.2 million compared to $4,832.7 million in the same period of 2024[20] - Net earnings for the same period rose by 6% to $1,013.0 million, up from $956.3 million year-over-year[20] - Basic earnings per share increased by 7% to $2.50, compared to $2.34 in the prior year[20] - Adjusted net earnings reached $1,013.0 million, reflecting a 6% increase from $956.3 million in the previous year[26] Revenue Segments - Employer Services revenues increased 7% on a reported basis, with new business bookings growth projected at 4% to 7%[7][11] - PEO Services revenues increased 7%, with average worksite employees paid by PEO Services rising 2% to approximately 754,000[7] - Employer Services segment revenues grew by 7% to $3,491.2 million, while PEO Services also saw a 7% increase to $1,687.5 million[20] - Consolidated revenue growth reported at 7% for both Employer Services and PEO Services, with organic constant currency growth at 6%[31] Client Funds and Interest Income - Interest on funds held for clients rose 13% to $287 million, with average client funds balances increasing 7% to $34.9 billion[8] - The average interest yield on client funds increased by 20 basis points to 3.3%[8] - The company anticipates client funds interest revenue of $1.300 to $1.320 billion for fiscal 2026, based on expected growth in client funds balances of 3% to 4%[12] - Average investment balances for client funds increased to $34.9 billion, up 7% from $32.8 billion in the previous year[22] - Interest income from funds held for clients rose to $286.8 million, a 13% increase compared to $253.3 million in the prior year[22] - Average interest rate earned on funds held for clients increased to 3.3%, up from 3.1% year-over-year[22] - Corporate extended interest income grew to $78.7 million, a 16% increase from $67.8 million in the prior year[22] - The net impact from the Client Funds Strategy increased to $263.7 million, a 29% rise from $203.8 million in the prior year[22] Assets and Liabilities - Total current assets as of September 30, 2025, amounted to $44,202.5 million, up from $43,252.2 million as of June 30, 2025[18] - Cash and cash equivalents decreased to $2,478.0 million from $3,347.8 million as of June 30, 2025[18] - Total liabilities increased to $47,947.0 million from $47,181.3 million in the previous quarter[18] - The company reported a net cash flow from operating activities of $642.3 million for the three months ended September 30, 2025, down from $824.4 million in the same period of 2024[19] - The company’s total stockholders' equity rose to $6,373.8 million as of September 30, 2025, compared to $6,188.0 million as of June 30, 2025[18] Future Outlook - The company maintains a fiscal 2026 revenue growth outlook of 5% to 6% and adjusted diluted EPS growth of 8% to 10%[4] - Fiscal 2025 earnings before income taxes are projected at $5,310.1 million with a margin of 25.8%[33] - Adjusted EBIT margin (Non-GAAP) for Fiscal 2026 is expected to be 26.0%, an increase of 50 to 70 basis points[33] - Diluted earnings per share (GAAP) for Fiscal 2025 is estimated at $9.98, with a growth guidance of 8% to 10%[33] - Adjusted diluted earnings per share (Non-GAAP) for Fiscal 2025 is projected at $10.01, also with an 8% to 10% growth outlook[33] - The effective tax rate (GAAP) is anticipated to be 23.2% for Fiscal 2025, with a slight decrease to 23.0% in Fiscal 2026[33] Strategic Focus and Risks - The company is focusing on transformation and optimization initiatives, with a recorded impact of $19.3 million in optimization initiatives for Fiscal 2025[33] - The company emphasizes the importance of client retention and the successful launch of new solutions as key factors for future growth[34] - The company acknowledges various risks including market conditions, technology changes, and regulatory compliance that may impact future performance[34]

Performance Overview - The Dividend Kings experienced a decline of 1.58% in September, underperforming the SPDR S&P 500 ETF (SPY) by 4.47% [1] Current Month Performance - The performance in the current month is not showing improvement compared to previous results [1]

Core Insights - ADP has launched a new data release mechanism to provide preliminary estimates of private sector employment on a weekly basis, starting from October 29, 2025 [1] - The initial data indicates an average of 14,250 new jobs added weekly in the private sector, based on a four-week moving average from over 26 million anonymous payroll records [1] - This weekly data will serve as a leading indicator for ADP's traditional monthly employment report, which will continue to be released on the first Wednesday of each month [1] Group 1 - The introduction of weekly employment data aims to provide a more timely reference for labor market dynamics [1] - The next monthly employment report is scheduled for November 5, 2025, and will include detailed employment metrics across industry distribution, company size, and geographic dimensions [1] - ADP's Chief Economist highlighted the importance of near real-time data in providing a clearer view of the labor market during critical economic periods [1] Group 2 - Subsequent weekly preliminary estimates will be updated on November 11, 18, and 25, 2025 [1] - The weekly data is designed to enhance market sensitivity to changes in employment trends, especially in a context where economic policy heavily relies on data [1]

Group 1 - ADP Research will begin releasing weekly U.S. employment data to provide high-frequency insights into the labor market, supplementing its monthly reports [2][3] - The average new employment figure for the four weeks ending October 11 was 14,250, covering about 20% of the U.S. private sector workforce [3] - The release of this data comes amid a government shutdown, making third-party data sources increasingly valuable as official statistics are paused [3][4] Group 2 - ADP's Chief Economist Nela Richardson stated that the new weekly employment data will offer a clearer picture of the labor market during this critical economic period [4] - There is a general expectation that Federal Reserve officials will lower interest rates in response to a cooling labor market, as hiring has slowed and demand for workers has eased [4] - ADP's data is compiled in collaboration with the Stanford Digital Economy Lab, based on weekly payroll data from over 26 million private sector employees [4]

Group 1 - The core point of the article highlights a strong rebound in private sector employment, with an average of 14,250 new jobs added weekly over the past four weeks, contrasting with negative growth in September [1][2] - The data is based on a collaboration between ADP and Stanford Digital Economy Lab, utilizing weekly salary records from over 26 million private sector employees [1] - ADP's Chief Economist, Nela Richardson, emphasizes that the near real-time employment data will provide clearer insights into the labor market during this critical economic period [1] Group 2 - The weekly addition of 14,250 jobs translates to an average monthly employment growth of approximately 55,000 jobs, a significant improvement compared to a decrease of 32,000 jobs reported in September's National Employment Report (NER) [2] - ADP plans to continue releasing a final monthly estimate, with the next NER scheduled for November 5, 2025, at 8:15 AM Eastern Time [2] - The next preliminary estimate for private sector weekly employment will be published on November 11 at 8:15 AM [2]

Group 1 - ADP has announced the launch of a weekly preliminary estimate of the National Employment Report to track U.S. labor market dynamics more frequently, starting this week [1] - The first report indicates an average increase of 14,250 private sector jobs over the four weeks ending October 11, 2025 [1] - The new weekly report will be released every Tuesday at 8:15 AM ET, providing a four-week moving average of private sector employment changes [1] Group 2 - The existing monthly National Employment Report will continue to be published on the first Wednesday of each month, providing detailed data across various dimensions [2] - Major financial institutions, including Goldman Sachs and Bank of America, have indicated that the U.S. labor market is steadily losing growth momentum, supported by ADP's data [2] - The accelerated selection process for the next Federal Reserve Chair by President Trump may allow the White House to influence monetary policy ahead of schedule [2]

Core Insights - ADP has announced a preliminary U.S. estimate indicating an average increase of 14,250 jobs in the four weeks ending on October 11, 2025, providing a timely view of the labor market [3][4]. Employment Data Release - ADP will release a weekly preliminary estimate of private sector employment every Tuesday, starting from October 28, 2025, to offer a directional indicator of the labor market [1][4]. - A comprehensive monthly jobs report will continue to be released on the first Wednesday of each month, based on anonymized payroll data from over 26 million private-sector employees in the U.S. [2][4]. Methodology and Collaboration - The preliminary estimate is based on ADP's high-frequency data and is produced in collaboration with the Stanford Digital Economy Lab, ensuring a dynamic view of job creation and loss [3][4]. - ADP's data is derived from anonymized and aggregated administrative data on private-sector payrolls, providing a detailed picture of employment changes [4][6]. Future Reporting Schedule - The next monthly ADP National Employment Report will be released on November 5, 2025, followed by subsequent weekly preliminary estimates on November 11, 18, and 25, 2025 [5][6].

Group 1 - Automatic Data Processing, Inc. (ADP) has seen its stock price decline from $329 to $283, prompting discussions about its performance and future outlook [1] - Jim Cramer expressed confidence in ADP, suggesting investors should hold onto their shares despite recent negative research [1] - The company is recognized for its cloud-based human capital management solutions, which automate payroll, HR, and workforce functions [2] Group 2 - Since a recent comment by Cramer, ADP's stock has dropped over 4.5%, indicating market volatility and investor sentiment [2] - There is a belief that certain AI stocks may present better investment opportunities compared to ADP, highlighting a competitive landscape in the tech sector [3]