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Investing.com - Automatic Data Processing (NASDAQ:ADP) on Wednesday reported better-than-expected first quarter fiscal 2026 results on Wednesday, with revenue increasing 7% to $5.2 billion compared to the same period last year, exceeding analyst estimates of $5.14 billion.
The HR and payroll solutions provider posted adjusted earnings per share of $2.49, surpassing the analyst consensus of $2.44. Net earnings rose 6% to $1.0 billion, while adjusted EBIT increased 7% to $1.3 billion with margins remaining flat at 25.5%.
Revenue in the Employer Services segment grew 7% year-over-year to $3.49 billion, while PEO Services revenue also increased 7% to $1.69 billion. The company reported that average worksite employees paid by PEO Services increased 2% to approximately 754,000.
"Fiscal 2026 started off with solid financial performance and meaningful progress across our strategic priorities," said Maria Black, President and Chief Executive Officer. "We continue to drive strong outcomes for clients, as exemplified by our record client satisfaction levels and continued robust retention results."
Interest on funds held for clients increased 13% to $287 million, with average client funds balances rising 7% to $34.9 billion.
ADP maintained its fiscal 2026 outlook, projecting revenue growth of 5% to 6%, adjusted EBIT margin expansion of 50 to 70 basis points, and adjusted diluted EPS growth of 8% to 10%.
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