Automatic Data Processing Q1 Revenue Up 7% to $5.2B, EPS $2.49; Pays-Per-Control Flat
Automatic Data Processing reported fiscal first-quarter revenue of $5.2 billion, up 7% year over year, and GAAP EPS of $2.49, a 6% increase (7% non-GAAP). The company guided fiscal 2026 revenue growth of 5%-6% and expects U.S. pays-per-control to remain approximately flat.
1. Dividend Growth and Strong Credit Profile
Automatic Data Processing extended its dividend growth streak to 51 consecutive years in 2026, reinforcing its reputation as a reliable income investment. The company paid out $5.2 billion in dividends over the past 12 months, representing a payout ratio of approximately 60% of adjusted earnings. ADP holds an AA– rating from S&P Global Ratings with a stable outlook, underscoring its disciplined balance sheet management and low leverage (net debt to adjusted EBITDA of 1.8x at the end of Q1 fiscal 2026).
2. Upcoming Second Quarter Fiscal 2026 Results
ADP will report its financial results for the quarter ending December 31, 2025, on January 28, 2026, before the market opens. Management—President & CEO Maria Black, CFO Peter Hadley and VP of Investor Relations Matthew Keating—will host a conference call at 8:30 a.m. ET. Investors can access the live webcast and slide presentation on the company’s Investor Relations website. ADP no longer uses traditional news wires; an alert will be issued to indicate the release of earnings materials.
3. Fiscal First Quarter 2026 Performance and Guidance
In the first quarter of fiscal 2026 (ended September 30, 2025), ADP delivered 7% year-over-year revenue growth to $5.2 billion and reported GAAP earnings per share of $2.49, up 6% from the prior year. Non-GAAP earnings per share rose 7%. Core U.S. pays-per-control, a same-store sales metric tracking employee count on ADP payrolls, was essentially flat year over year, compared to 1% growth in the prior two quarters. For full fiscal 2026, management forecasts revenue growth of 5%–6% versus fiscal 2024 and expects U.S. pays-per-control to remain approximately flat.
4. Strategic Expansion of HCM Platform
Beyond payroll processing, ADP is accelerating its transition toward a comprehensive human capital management (HCM) suite. Recent product launches—including the NextGen version of its midmarket platform ADP Workforce Now and the Lyric HCM solution for larger enterprises—are designed to upsell existing clients and attract new logos. With more than 1.1 million clients across over 140 countries and a 75-year track record, ADP aims to drive incremental revenue per client through modules such as benefits administration, talent management and compliance, reducing reliance on core payroll volume growth.