Automatic Data Processing (ADP) 53rd Annual Nasdaq Investor Conference summary

Key messages from investor day and business overview

• Emphasized scale, dependability, and 76-year history navigating economic and innovation cycles.

• Highlighted $180 billion total addressable market and significant growth runway.

• Showcased innovation in products, including launches like ADP Lyric and expansion of Workforce Now, Next Gen.

• Detailed investments in modern distribution channels and a robust sales ecosystem.

• Demonstrated innovative sales tools and a culture of execution in distribution.

Labor market trends and macroeconomic insights

• ADP’s employment data covers 26 million U.S. wage earners, providing unique labor market insights.

• Recent monthly report showed a decrease of 32,000 jobs, with moderation in small business and pressure in leisure/hospitality.

• Wage growth remains elevated, with only minor recent movement.

• Early signs of AI impact in certain roles, but overall effects are still emerging.

• New NER Pulse report offers weekly employment updates for real-time tracking.

Company-specific performance and outlook

• Client base shows multi-year lows in layoffs and stable, though muted, employment growth.

• Guidance adjusted to the lower end, expecting flat organic employment growth.

• Client base is more resilient than the broader market, especially among small businesses.

• Stable environment expected with low hiring and layoffs, and continued resilient wage growth.