Automatic Data Processing (ADP) reported $5.36 billion in revenue for the quarter ended December 2025, representing a year-over-year increase of 6.2%. EPS of $2.62 for the same period compares to $2.35 a year ago.
The reported revenue represents a surprise of -0.47% over the Zacks Consensus Estimate of $5.38 billion. With the consensus EPS estimate being $2.58, the EPS surprise was +1.62%.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Average paid PEO worksite employees during the period: 758 versus the two-analyst average estimate of 762.
- Segment revenues- Employer Services: $3.61 billion versus $3.57 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6.5% change.
- Revenues- Interest on funds held for clients: $308.6 million versus the four-analyst average estimate of $310.24 million. The reported number represents a year-over-year change of +13.1%.
- Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $3.3 billion versus the three-analyst average estimate of $3.27 billion. The reported number represents a year-over-year change of +5.9%.
- Revenues- PEO revenues: $1.75 billion compared to the $1.75 billion average estimate based on three analysts. The reported number represents a change of +5.5% year over year.
- Segment revenues- PEO Services: $1.76 billion versus the three-analyst average estimate of $1.77 billion. The reported number represents a year-over-year change of +5.5%.
- Segment revenues- Other: $-3.3 million versus $-3.58 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -2.9% change.
View all Key Company Metrics for ADP here>>>
Shares of ADP have returned -1.9% over the past month versus the Zacks S&P 500 composite's +0.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Automatic Data Processing, Inc. (ADP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
