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Sep 30, 2025
ADP Q1 2026 Earnings Report
ADP reported strong revenue and earnings growth in Q1 2026, kicking off the fiscal year with solid performance.
Key Takeaways
ADP delivered 7% revenue growth and maintained flat margins in Q1 2026, driven by solid new business bookings, high client retention, and increased interest income. The company reaffirmed its full-year outlook.
Revenue by Segment
Forward Guidance
ADP reaffirmed its fiscal 2026 outlook with expectations of steady growth in revenue, EPS, and client funds interest income.
Positive Outlook
- Revenue growth expected between 5% and 6%
- Adjusted EPS growth projected at 8% to 10%
- Employer Services revenue and bookings growth guided between 5%-6% and 4%-7%, respectively
- Interest on client funds expected to reach $1.3B to $1.32B
- PEO Services revenue growth expected at 5% to 7%
Challenges Ahead
- Employer Services segment margin declined by 50 bps
- PEO Services segment margin declined by 140 bps
- Client revenue retention expected to decline by 10 to 30 bps
- U.S. pays per control growth is flat
- Adjusted EBIT margin projected to expand only slightly (50–70 bps)
Historical Earnings Impact
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Avg. Return Before/After Earnings
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