Read Why Investors Cheered Automatic Data Processing's Q1 Performance

Automatic Data Processing Inc ADP reported first-quarter FY22 revenue growth of 10% year-on-year to $3.83 billion, beating the consensus of $3.75 billion. The revenue rose 10% Y/Y on an organic constant currency basis.
Employer Services revenues increased 8% Y/Y to $2.57 billion, and PEO Services revenues grew 15% Y/Y to $1.26 billion.
Margin: Adjusted EBIT margin expanded 140 basis points to 23.9% as higher operating revenue more than offset the higher selling expenses and implementation costs.
Non-GAAP EPS of $1.65 beat the consensus of $1.49.
ADP generated $121.9 million in operating cash flow and held $1.6 billion in cash and equivalents.
"This strong start to the fiscal year 2022 reflects improving demand across all of our offerings as more employers partner with ADP for their HCM solutions," CEO Carlos Rodriguez said.
Outlook: ADP sees FY22 revenue of $16.06 billion - $16.21 billion above the analyst consensus of $16.02 billion.
It sees non-GAAP EPS of $6.68 above the analyst consensus of $6.63.
Price action: ADP shares closed higher by 1.44% at $221.95 on Wednesday.

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