ADP’s cloud-based HCM revenue continues to expand as more clients adopt its workforce management, payroll, and talent solutions, driving recurring subscriptions and service fees.

In recent quarters ADP completed several mid-sized acquisitions targeting analytics and compliance platforms to enhance its integrated human capital management suite and broaden its client base.

The board approved an enhanced shareholder return program, including an increase to the quarterly dividend and authorization of additional share repurchases to return capital to investors.

Intensifying competition from specialist cloud HCM providers and a notable rise in labor expenses are expected to apply downward pressure on ADP’s operating margin expansion.