Automatic Data Processing Inc NASDAQ:ADP Price, Chart, News & Insight

ADP Falls 2% Despite Strong Fiscal Q1 Results and Higher 2027 Guidance

Automatic Data Processing (NASDAQ: ADP) shares fell about 2% even after the company reported stronger-than-expected fiscal first-quarter 2027 results and raised its full-year outlook.

Revenue increased 6% year over year to $5.5 billion, while adjusted net earnings rose 11% to $1.1 billion. Adjusted EBIT increased 12% to $1.5 billion, with adjusted EBIT margin expanding 130 basis points to 26.8%. Adjusted diluted EPS rose 13% to $2.82.

Employer Services revenue grew 6%, with U.S. pays per control up 2% and segment margin improving 130 basis points. PEO Services revenue increased 7%, while average worksite employees rose 2% to about 771,000.

Interest income on client funds was another positive, increasing 15% to $329 million as average client balances rose 6% and the average yield increased to 3.6%.

ADP raised its fiscal 2027 outlook, now expecting revenue growth of about 6%, adjusted EBIT margin expansion of 70 to 90 basis points and adjusted EPS growth of 10% to 12%.

The 2% decline appears to reflect investor concerns over the forward growth profile rather than the quarter itself. Employer Services new business bookings are expected to grow only 4% to 7%, client retention is projected to decline modestly, and U.S. pays per control growth is expected to slow to about 1% for the full year.

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WS Investor 10-28-26

ADP Stock Edges Higher After Strong Q4 Results and Solid Fiscal 2027 Outlook

Automatic Data Processing (NASDAQ: ADP) shares rose 5% on Wednesday after the payroll and human capital management provider reported strong fourth-quarter and full-year fiscal 2026 results, supported by healthy revenue growth, expanding margins, and a solid outlook for fiscal 2027.

For the fourth quarter, ADP reported revenue of $5.5 billion, up 7% year over year, while adjusted EBIT increased 13% to $1.4 billion. Adjusted EBIT margin expanded 140 basis points to 25.1%, reflecting continued operating leverage. Diluted EPS rose 10% to $2.45, while adjusted diluted EPS climbed 17% to $2.64.

The company also delivered another strong full year. Revenue increased 7% to $21.9 billion, adjusted EBIT rose 10% to $5.9 billion, and adjusted EBIT margin expanded 80 basis points to 26.8%. Adjusted EPS increased 11% to $11.12, while Employer Services new business bookings reached a record $2.2 billion, up 6% from the previous year.

Management highlighted strong client retention, record customer satisfaction, and growing adoption of AI-powered capabilities across its products, service operations, and sales organization. CEO Maria Black said AI is making human capital management increasingly critical and positions ADP to strengthen its role as a trusted partner for employers navigating the future of work.

Looking ahead, ADP issued a healthy fiscal 2027 outlook. The company expects revenue growth of 5% to 6%, adjusted EBIT margin expansion of 70 to 90 basis points, and adjusted EPS growth of 9% to 11%. It also expects continued growth in Employer Services bookings and higher interest income from client funds.

The gain in ADP shares reflects investor confidence in the company's consistent execution and resilient business model. While the fiscal 2027 guidance points to a normalization from this year's growth rates, expanding margins, recurring revenue, strong cash generation, and increasing AI integration continue to support ADP's long-term growth outlook.

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The Investor 07-29-26

ADP reported solid second-quarter fiscal 2026 results and raised its full-year outlook, citing strong execution, new business momentum, and resilient demand for its HR and payroll solutions.

For the quarter ended December 31, 2025, ADP’s revenues rose 6% year over year to $5.4 billion, or 5% on an organic constant-currency basis. Net earnings increased 10% to $1.1 billion, while adjusted EBIT climbed 10% to $1.4 billion, lifting the adjusted EBIT margin by 80 basis points to 26.0%. Diluted and adjusted diluted EPS both rose 11% to $2.62.

Employer Services revenues increased 6% year over year, supported by steady client activity, with segment margins expanding 50 basis points. PEO Services revenues also grew 6%, with average worksite employees up 2% to about 758,000, though segment margin declined 70 basis points. Interest on funds held for clients rose 13% to $309 million, driven by higher balances and yields.

Management raised fiscal 2026 guidance, now expecting revenue growth of about 6%, adjusted EBIT margin expansion of 50–70 basis points, and adjusted diluted EPS growth of 9%–10%. ADP also reaffirmed expectations for strong contributions from its client funds investment strategy, reflecting higher average yields and growing client balances.

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European Investor 01-28-26

Automatic Data Processing announced that its Board of Directors has authorized a new $6 billion share repurchase program. The new authorization fully replaces the prior 2022 program, which allowed for up to $5 billion in buybacks. As of December 31, 2025, ADP had approximately 403 million common shares outstanding.

Source: PR Newswire, January 14, 2026

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European Investor 01-17-26

ADP is scheduled to release its financial results for the second fiscal quarter ending December 31, 2025 before the opening of the Nasdaq on January 28, 2026.

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The Investor 01-05-26

The board of directors of ADP (Nasdaq: ADP) approved a $0.16 increase in the quarterly cash dividend to an annual rate of $6.80 per share.

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Global Finance News 11-12-25

ADP Reports Strong Q1 FY2026 Results with 7% Revenue Growth, Reaffirms Outlook

ADP (Nasdaq: ADP) posted first-quarter fiscal 2026 revenue of $5.2 billion, up 7% year over year, or 6% on an organic constant-currency basis. Net earnings rose 6% to $1.0 billion, while adjusted EBIT grew 7% to $1.3 billion, maintaining a 25.5% margin. Diluted and adjusted EPS both increased 7% to $2.49. Growth was driven by solid new business bookings, strong client retention, and a 13% rise in interest on client funds to $287 million. CEO Maria Black highlighted continued integration of AI into products and operations, while CFO Peter Hadley reaffirmed the company’s full-year outlook for 5–6% revenue growth and 8–10% adjusted EPS growth.

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The Investor 10-29-25

ADP (Nasdaq: ADP) is scheduled to release its financial results for the first fiscal quarter ending September 30, 2025 before the opening of the Nasdaq on Wednesday, October 29, 2025.

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The Investor 09-29-25

ADP Reports Strong FY 2025 Results; Projects Continued Growth in FY 2026

ADP (Automatic Data Processing) reported robust financial performance for fiscal year 2025, with revenues up 7% to $20.6 billion, including 7% organic constant currency growth. The company also delivered solid earnings growth and margin expansion while offering a positive outlook for fiscal 2026.
FY 2025 Financial Highlights:
• Revenue: $20.6B (+7%)
• Net Earnings: $4.1B (+9%)
• Adjusted Net Earnings: $4.1B (+8%)
• Adjusted EBIT: $5.3B (+9%)
• Adjusted EBIT Margin: 26.0% (up 50 basis points)
• Diluted EPS: $9.98 (+10%)
• Adjusted Diluted EPS: $10.01 (+9%)
• Employer Services New Business Bookings: $2.1B (+3%)
Fiscal 2026 Outlook:
• Revenue Growth: 5% to 6%
• Adjusted EBIT Margin Expansion: 50 to 70 basis points
• Adjusted Diluted EPS Growth: 8% to 10%

ADP's consistent growth in earnings, margin expansion, and new business momentum underscore strong demand for its HR and payroll solutions, with continued confidence heading into FY 2026.

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The Investor 07-30-25

ADP (Nasdaq: ADP), a leading global provider of Human Capital Management (HCM) solutions, is scheduled to release its financial results for the fourth fiscal quarter ending June 30, 2025 before the opening of the Nasdaq on Wednesday, July 30, 2025.

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Global Finance News 06-25-25

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