ADP (ADP) Reports Q1: Everything You Need To Know Ahead Of Earnings

Payroll and HR services provider Automatic Data Processing (NASDAQ:ADP) will be reporting earnings tomorrow before market hours. Here’s what you need to know.

ADP beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $5.05 billion, up 8.1% year on year. It was a very strong quarter for the company, with revenue guidance for next quarter beating analysts’ expectations and a decent beat of analysts’ EPS estimates. It reported 751,000 worksite employees, up 3.2% year on year.

Is ADP a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting ADP’s revenue to grow 4.6% year on year to $5.49 billion, slowing from the 6.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.97 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ADP has missed Wall Street’s revenue estimates three times over the last two years.

Looking at ADP’s peers in the data & business process services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Equifax delivered year-on-year revenue growth of 3.8%, beating analysts’ expectations by 1.7%, and SS&C reported revenues up 5.4%, topping estimates by 0.8%. Equifax traded up 15.9% following the results while SS&C was down 6.1%.

Read our full analysis of Equifax’s results here and SS&C’s results here.

Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the data & business process services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.1% on average over the last month. ADP is down 3.9% during the same time and is heading into earnings with an average analyst price target of $308.61 (compared to the current share price of $293.62).

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