Automatic Data Processing Inc.

**Strong Financial Performance**: ADP reported a 7% revenue growth for Q1 FY2025, with adjusted EPS growth at 12% and adjusted EBIT margin expansion of 130 basis points. This performance exceeded expectations, driven by a solid Employer Services (ES) segment, which saw a revenue increase of 7% both on a reported and organic constant currency basis.

**Healthy Demand and Retention Rates**: Demand for Human Capital Management (HCM) services remains steady, with record new business bookings in Employer Services driven by strength in small business Retirement Services, HR Outsourcing, and International segments. The ES retention rate slightly declined but remains better than anticipated. Client satisfaction reached an all-time high, likely supporting continued retention.

**WorkForce Software Acquisition**: ADP completed its acquisition of WorkForce Software, enhancing its Workforce Management Solutions. This acquisition is expected to create growth opportunities in serving complex global enterprises. While thought to have a long-term positive impact, it is anticipated to exert short-term pressure on adjusted EBIT margins due to integration costs and amortization expenses.