Automatic Data Processing Inc. (NASDAQ: ADP) posted fiscal first-quarter 2026 results that exceeded Wall Street expectations, though shares fell more than 5% in intra-day trading on Wednesday.

The payroll and human resources solutions provider reported adjusted earnings per share of $2.49, above the analyst estimate of $2.44. Revenue climbed 7% year-over-year to $5.2 billion, beating the consensus forecast of $5.14 billion. Net earnings increased 6% to $1.0 billion, while adjusted EBIT rose 7% to $1.3 billion, with margins steady at 25.5%.

Employer Services revenue advanced 7% to $3.49 billion, while PEO Services revenue also grew 7% to $1.69 billion. The average number of worksite employees paid through PEO Services rose 2% to about 754,000.

Interest on funds held for clients grew 13% to $287 million, supported by a 7% rise in average client fund balances to $34.9 billion.

ADP reaffirmed its fiscal 2026 outlook, projecting revenue growth of 5% to 6%, adjusted EBIT margin expansion of 50 to 70 basis points, and adjusted EPS growth of 8% to 10%.