Automatic Data Processing stock: ADP raises fiscal 2027 outlook

Automatic Data Processing reported a stronger-than-expected start to fiscal 2027 on October 28, 2026, with higher revenue, profitability and a raised full-year outlook. The results and filing details were reported in the ADP 8-K filing published by StockTitan.

First-quarter growth broadens

Revenue for the quarter ended September 30, 2026 rose 6% year over year to USD 5.49 billion. Net earnings increased 11% to USD 1.125 billion, while diluted EPS reached USD 2.83. Adjusted diluted EPS was USD 2.82, up 13% from the prior-year period.

Adjusted EBIT increased 12%, and adjusted EBIT margin expanded by 130 basis points to 26.8%. Employer Services revenue grew 6%, with U.S. pays per control up 2%. PEO Services revenue advanced 7%; revenue excluding zero-margin benefits pass-throughs rose 4%, and average paid worksite employees increased 2% to about 771,000.

Guidance moves higher

ADP now expects fiscal 2027 revenue growth of about 6%, compared with the previous range of 5% to 6%. Adjusted diluted EPS growth is projected at 10% to 12%, raised from 9% to 11%. The company kept its adjusted EBIT margin expansion outlook at 70 to 90 basis points and expects diluted EPS growth of 12% to 14%.

Client-funds interest revenue increased 15% to USD 329 million in the quarter. ADP raised its fiscal-year client-funds interest revenue outlook to USD 1.59 billion to USD 1.61 billion, based on expected client-funds balance growth of 4% to 5% and an average portfolio yield of about 3.8%. Management also said its AI transformation and operational productivity initiatives remain important investment priorities.

Quote and investor context

Lang & Schwarz quoted ADP at EUR 254.48 on October 29, 2026, at 16:09:38 Berlin time. A comparable Xetra close for the same session was not available for a verified daily calculation, so the quote is presented without an asserted Xetra percentage change. Investors will weigh the raised earnings outlook against the unchanged margin target, currency headwinds and the company's continued spending on AI, products and international expansion.

For the real-time quote of Automatic Data Processing stock, the euro listing remains the relevant reference for this report.

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