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Here's What Key Metrics Tell Us About ADP (ADP) Q1 Earnings
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Automatic Data Processing (ADP - Free Report) reported $5.49 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 6.1%. EPS of $2.82 for the same period compares to $2.49 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $5.47 billion, representing a surprise of +0.44%. The company delivered an EPS surprise of +1.44%, with the consensus EPS estimate being $2.78.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Segment revenues- Employer Services: $3.69 billion versus the three-analyst average estimate of $3.68 billion. The reported number represents a year-over-year change of +5.6%.
Revenues- Interest on funds held for clients: $329.3 million versus $332.32 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +14.8% change.
Segment revenues- PEO Services: $1.81 billion compared to the $1.79 billion average estimate based on two analysts. The reported number represents a change of +7.2% year over year.
Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $3.36 billion versus $3.35 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.8% change.
Revenues- PEO revenues: $1.81 billion versus $1.78 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +7.1% change.
Shares of ADP have returned +12% over the past month versus the Zacks S&P 500 composite's -0.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
View the Zacks #1 Rank List
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Here's What Key Metrics Tell Us About ADP (ADP) Q1 Earnings
Automatic Data Processing (ADP - Free Report) reported $5.49 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 6.1%. EPS of $2.82 for the same period compares to $2.49 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $5.47 billion, representing a surprise of +0.44%. The company delivered an EPS surprise of +1.44%, with the consensus EPS estimate being $2.78.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:View all Key Company Metrics for ADP here>>>
Shares of ADP have returned +12% over the past month versus the Zacks S&P 500 composite's -0.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.