Automatic Data Processing (ADP)
NASDAQ:ADP
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Earnings Data
Report Date
Aug 05, 2026Before Open (Confirmed)
Period Ending
2026 (Q4)Consensus EPS Forecast
2.6Last Year’s EPS
2.26Same Quarter Last Year
Based on 12 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive tone: ADP delivered strong Q3 financial results (7% revenue growth, ~80 bps adjusted EBIT margin expansion, ~10% adjusted EPS growth), raised full‑year revenue and EPS guidance, and highlighted tangible AI‑driven productivity gains and record client retention/satisfaction. Challenges were concentrated in the PEO business where margins fell (~120 bps) due to pass‑through mix, SUI costs, selling expenses and some less favorable reserve movements, and management noted some near‑term FX moderation and booking outcome sensitivity. On balance, the positive operational momentum, upgraded outlook, measurable AI efficiencies, and strong client metrics outweigh the segment‑specific headwinds.Company Guidance
Top-Line Growth and Raised Outlook
Reported consolidated revenue growth of 7% in Q3; company raised full-year consolidated revenue growth guidance to 6%–7% following the quarter.
Profitability and EPS Expansion
Adjusted EBIT margin expanded by ~80 basis points in Q3; ADP raised its fiscal 2026 adjusted EBIT margin expansion target to 70–80 basis points and increased adjusted EPS growth guidance to 10%–11% (Q3 adjusted EPS grew ~10%).
Employer Services (ES) Performance
ES segment revenue increased 7% on a reported basis and 5% on an organic constant-currency basis in Q3 (FX contributed ~2 percentage points); ES margins improved (up 130 basis points in Q3) driven by operational productivity and higher client funds interest contribution.
PEO and Payroll Metrics
Total PEO revenue rose 7% in Q3, with PEO revenue excluding zero‑margin pass‑throughs up 5%; average worksite employee growth was 2% in Q3 and management expects ~2% for fiscal 2026.
Client Funds and Investment Tailwinds
Average client funds balances grew ~9% in Q3; ADP increased its full‑year average client funds balances growth forecast to ~6% and raised the midpoint of client funds interest revenue by $25 million to a $1.34B–$1.35B range; the company expects an average yield of ~3.4%.
Record Client Satisfaction and Retention
Employer Services retention rate and overall client satisfaction reached new third‑quarter records; strong retention contributed to improved guidance (ES retention now expected to be flat to down 20 bps for the year).
AI and Operational Productivity Gains
ADP reported meaningful AI-driven efficiencies: ADP Assist payroll agents saved an average of 30 minutes per payroll; Smart Actions search reduced clicks/time by ~80% for common HR actions; internal deployments (e.g., India year-end) cut volumes and labor by ~35%; RAM/AI tools enabled an 8% YoY reduction in client contacts in fiscal Q3.
Product Momentum and External Recognition
Lyric HCM adoption momentum—examples include reducing recruiting steps from 23 to 8 and enabling a 71% leaner payroll operations model for a global client; ADP ranked #1 in HR on Fast Company's Most Innovative list and Run Powered by ADP remained a top‑ranked small business product on G2.
Balance Sheet / Capital Allocation
Management increased share repurchase activity and expects buybacks at or above elevated levels for the remainder of the year and into fiscal 2027 (in addition to dividend growth and continued investments).
ADP Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ADP Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 29, 2026 | $199.17 | $215.06 | +7.98% |
Jan 28, 2026 | $252.42 | $248.63 | -1.50% |
Oct 29, 2025 | $275.56 | $257.42 | -6.58% |
Jul 30, 2025 | $302.57 | $304.83 | +0.74% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Automatic Data Processing (ADP) report earnings?
Automatic Data Processing (ADP) is schdueled to report earning on Aug 05, 2026, Before Open (Confirmed).
What is Automatic Data Processing (ADP) earnings time?
Automatic Data Processing (ADP) earnings time is at Aug 05, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ADP EPS forecast?
ADP EPS forecast for the fiscal quarter 2026 (Q4) is 2.6.
