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ADP Automatic Data ProcessingEarnings

ADP Tops Revenue Estimates at $5.49 Billion as Adjusted EPS Reaches $2.82

ADP raised its fiscal 2027 revenue growth and adjusted diluted EPS growth guidance, with consolidated revenue growth now about 6% and adjusted EPS growth of 10% to 12%.

By Zintick Team · Editor: Kratik Mehta
Published

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Photo: Juice Flair/Shutterstock.com

Key points

  • Revenue of $5.49 billion, up 6%, versus $5.47 billion analyst consensus
  • Adjusted diluted EPS of $2.82 versus $2.77 consensus; GAAP diluted EPS $2.83, up 14%
  • Full-year revenue growth guidance raised to about 6%; adjusted EPS growth to 10% to 12%
  • Adjusted EBIT margin rose 130 basis points to 26.8%

Automatic Data Processing (Nasdaq: ADP) reported fiscal first-quarter revenue of $5.49 billion, above the $5.47 billion analysts expected, and adjusted diluted earnings per share of $2.82 against the $2.77 consensus estimate, in an 8-K filed Wednesday. Revenue rose 6% from a year earlier, and GAAP diluted EPS rose 14% to $2.83.

Segment performance

Employer Services revenue rose 6% to $3.69 billion, and its segment margin widened 130 basis points to 36.5%. U.S. pays per control increased 2%. PEO Services revenue grew 7% to $1.81 billion, while segment margin was flat at 13.0%. Average worksite employees paid by PEO Services rose 2% to about 771,000.

Net earnings and client funds

Net earnings increased 11% to $1.13 billion. Adjusted EBIT rose 12% to $1.47 billion, and the adjusted EBIT margin expanded 130 basis points to 26.8%. Interest on funds held for clients increased 15% to $329 million, as average client funds balances rose 6% to $36.9 billion and the average yield increased 30 basis points to 3.6%.

Raised fiscal 2027 outlook

ADP raised its full-year guidance. The company now expects consolidated revenue growth of about 6%, up from 5% to 6%, and adjusted diluted EPS growth of 10% to 12%, up from 9% to 11%. It also forecast an adjusted EBIT margin expansion of 70 to 90 basis points and client funds interest revenue of $1.59 billion to $1.61 billion. The full-year analyst consensus is adjusted EPS of $12.26 on revenue of $23.23 billion.

ADP's chief executive, Maria Black, said the company was "off to a strong start in fiscal 2027." Chief Financial Officer Peter Hadley said first-quarter results exceeded the company's expectations across revenue growth, adjusted EBIT margin expansion and adjusted EPS growth.

The stock closed at $293.11 on Tuesday, Oct. 27, the last close before the filing.

Sources

Written with AI from the company's results filing with the SEC, analysts' estimates where we had them, and our market data, and checked against those sources before publishing. Our editorial standards.

ADP page →

Filings, figures and price history are on the Automatic Data Processing page.