(Reuters) – Payroll and human capital management company Automatic Data Processing raised its revenue growth forecast for fiscal 2025 on Wednesday, citing expected benefits from its recent acquisition of management services provider WorkForce Software.

The Roseland, New Jersey-based company acquired WorkForce Software earlier this month for approximately $1.2 billion in cash.

ADP’s results reflect that payroll and human resources spending remain healthy, supported by a stable labor market and declining layoffs.

Layoffs fell by 105,000 to 1.608 million, with declines seen in the retail, healthcare and hospitality sectors, among others.

ADP raised its revenue growth forecast for the full year to between 6% and 7%, compared to its previous expectations of growth between 5% and 6%.

First-quarter revenue reached $4.83 billion, beating analysts’ estimates of $4.77 billion, according to LSEG data.

“Our revenues and margins in the first quarter exceeded our expectations as we benefited from solid new business growth, strong client revenue retention and increased interest income on client funds. customers,” said Don McGuire, ADP’s chief financial officer.

Revenue from its PEO segment, which provides administration outsourcing services, rose 7% to $1.57 billion in the quarter ended September 30, compared with estimates of 1. $55 billion.

On an adjusted basis, the company earned $2.33 per share in the first quarter, compared to estimates of $2.21 per share.

(Reporting by Zaheer Kachwala in Bangalore; Editing by Tasim Zahid)