Description
ADP: Will Gen AI and Smart Acquisitions Propel Its Next Phase of Global Expansion?
Automatic Data Processing, Inc. (ADP) delivered a solid performance in their first quarter of fiscal year 2026. The company reported a 7% growth in both revenue and adjusted earnings per share (EPS). This growth was bolstered by increased sales in Employer Services and an encouraging performance from their Professional Employer Organization (PEO) segment. A key feature of the quarter was a record sales volume for Employer Services and significant client satisfaction improvements across all business units. However, ADP experienced a slight decline in their Employer Services retention rate and flat growth in pays per control, indicating clients remain cautious with headcount additions. ADP is making significant strides in advancing its HCM technology, with a focus on expanding its embedded payroll solutions, primarily in the small business sector. Enhanced payroll capabilities provide time savings for small business owners through integration into existing software platforms.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures
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