UBS maintains ADP stock rating on solid Q1 results, steady outlook

US private payrolls grew by 86,000 jobs in October, according to ADP. This surpassed economist forecasts of 69,000. The BLS is expected to report a 64,000 increase in private payrolls for October, with the unemployment rate remaining at 4.2%. The labor market shows resilience despite geopolitical uncertainties.

ADP, Inc. reported 86,000 private-sector jobs added in October, with September's total revised to 86,000 from 90,000. Base pay rose 3.2% and gross pay rose 4.7% year over year, according to the company.

Private-sector employment increased by 86,000 jobs in October, according to ADP's National Employment Report. Base pay rose 3.2% and gross pay increased 4.7% year over year. Hiring showed solid growth, but professional and business services lost jobs for the third straight month. ADP (NASDAQ: ADP) produces the report in collaboration with the Stanford Digital Economy Lab.

ADP reported 1Q 2027 revenue of $5.49B, up 6% YoY, with net income rising 11% to $1.13B and EPS increasing 14% to $2.83. Growth was driven by new business, client retention, and AI expansions like ADP Assist. Employer Services and PEO Services revenues grew 6% and 7%, respectively. ADP Lyric HCM expanded to Europe.

ADP reported Q1 2027 earnings, highlighting foreign exchange headwinds and maintaining full-year guidance. PEO revenue grew 4%, and the company expects adjusted EBIT margin expansion of 70-90 basis points. ADP discussed partnerships, AI tools, and global expansion. CEO Maria Black and CFO Peter Hadley addressed investor questions on pricing, integration, and market trends.

ADP reported Q1 earnings, noting improved revenue retention and pays per control in Employer Services, raising its fiscal-year forecast. PEO revenue grew 7%, and client-funds interest revenue increased 15%. The company highlighted AI integration and partnerships, including a deal with PNC Bank. ADP maintained its full-year outlook but cited foreign exchange as a headwind.