Automatic Data Processing stock weighs strong Q1 against PNC deal

Automatic Data Processing reported stronger-than-expected fiscal first-quarter results on October 28, 2026, while also announcing a distribution partnership with PNC Bank. The company raised its fiscal 2027 revenue outlook and is expanding its embedded payroll strategy. The figures and management commentary were reported by MarketBeat.

Revenue increased 6 percent in the quarter. Adjusted EBIT margin expanded by 130 basis points, while adjusted earnings per share rose 13 percent. Employer Services revenue also grew 6 percent on both a reported and organic constant-currency basis, and the segment produced a first-quarter record for new business bookings.

Guidance rises on operating momentum

ADP now expects consolidated revenue growth of about 6 percent in fiscal 2027 and adjusted EPS growth of 10 to 12 percent. The company maintained its outlook for adjusted EBIT margin expansion of 70 to 90 basis points. Employer Services bookings growth remains forecast at 4 to 7 percent for the full year, while pays per control is now expected to grow by approximately 1 percent.

Professional Employer Organization revenue increased 7 percent, or 4 percent excluding zero-margin pass-throughs. Average worksite employees grew 2 percent, and ADP kept its full-year PEO revenue-growth outlook at 5 to 7 percent with average worksite employee growth of about 2 percent.

Client-funds interest revenue increased 15 percent in the quarter. ADP lifted its fiscal-year forecast for that revenue by 50 million US dollars to a range of 1.59 billion to 1.61 billion US dollars, supported by stronger balances and an expected average portfolio yield of about 3.8 percent.

Automatic Data Processing stock traded at 267.73 euros on Lang & Schwarz at 13:32 CET on Tuesday, November 10, 2026.

PNC partnership extends embedded payroll

PNC Payroll by ADP will place payroll, human-resources, time-tracking, insurance and retirement services inside PNC's digital banking platform for small-business customers. Chief Executive Officer Maria Black said the arrangement extends ADP's embedded strategy and could support broader distribution of services beyond payroll technology.

ADP also expanded the availability of its Lyric HCM platform to organizations headquartered in the United Kingdom, France, Germany and the Netherlands. Management said larger Lyric and global-payroll wins from fiscal 2026 should contribute more meaningfully to revenue later in fiscal 2027 and, for some implementations, into fiscal 2028.

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More earnings, product and distribution updates are available in more news and analyses on Automatic Data Processing stock.