Polstob
Wed, 28 Oct 2026
BreakingEarnings

ADP lifts its fiscal 2027 revenue and EPS growth forecasts

Fiscal Q1 adjusted EPS (non-GAAP) of $2.82 was just above a $2.78 Nasdaq.com consensus, Polstob's comparison shows, and revenue rose 6% to $5.5bn.

Key facts
  • Revenue · Fiscal Q1 2027 (to 30 September)5.5 $bn +6% y/y; +6% organic constant currency
  • Adjusted diluted EPS (non-GAAP) · Fiscal Q1 2027 (to 30 September)2.82 $ +13% year on year
  • Diluted EPS (GAAP) · Fiscal Q1 2027 (to 30 September)2.83 $ +14% year on year
  • FY2027 revenue growth guidance · Guidance issued 28 October 2026about 6 % Was 5%-6% (29 July)
  • FY2027 adjusted diluted EPS growth guidance (non-GAAP) · Guidance issued 28 October 202610-12 % Was 9%-11% (29 July)
  • FY2027 adjusted EBIT margin expansion guidance (non-GAAP) · Guidance issued 28 October 202670-90 basis points Unchanged from 29 July

ADP's revenue for the first quarter of fiscal 2027, which ended on 30 September, rose 6% from a year earlier to $5.5bn, also 6% on an organic constant currency basis (non-GAAP), according to the results release it furnished to the SEC at 6:55 AM ET (11:55 CET) on 28 October 2026. Adjusted diluted EPS (non-GAAP) rose 13% to $2.82, slightly above the $2.78 consensus from four estimates on Nasdaq.com, Polstob's comparison; the site lists $2.64 for the June quarter, matching the adjusted figure in ADP's July release. GAAP diluted EPS rose 14% to $2.83 and net earnings 11% to $1.1bn. Revenue of $5.49bn was just above the $5.48bn consensus estimate cited by Investing.com, Polstob's comparison.

What changed
ItemsOutlook of 29 July 2026Outlook of 28 October 2026
FY2027 revenue growth5% to 6%About 6%
FY2027 adjusted diluted EPS growth (non-GAAP)9% to 11%10% to 12%
FY2027 diluted EPS growth (GAAP)11% to 13%12% to 14%
FY2027 interest on funds held for clients$1.540bn to $1.560bn$1.59bn to $1.61bn

ADP now expects fiscal 2027 revenue growth of about 6%, against 5% to 6% in July, adjusted diluted EPS growth (non-GAAP) of 10% to 12%, up from 9% to 11%, and GAAP diluted EPS growth of 12% to 14%, up from 11% to 13%. The target for adjusted EBIT margin (non-GAAP) expansion stays at 70 to 90 basis points. Its forecast for U.S. pays per control is now about 1%, against 0% to 1% in July. Interest on funds held for clients is now seen about $50m higher at the midpoint, by Polstob's calculation, with balances growing 4% to 5% instead of 3% to 4%.

“Our first quarter results exceeded our expectations across revenue growth, adjusted EBIT margin expansion, and adjusted EPS growth.”

Peter Hadley, Chief Financial Officer, ADP · sec.gov

From a year earlier, adjusted EBIT (non-GAAP) grew 12% to $1.5bn, and the adjusted EBIT margin (non-GAAP) widened 130 basis points to 26.8%. In Employer Services, revenue rose 6%, U.S. pays per control rose 2% and the segment margin improved by 130 basis points. PEO Services revenue grew 7%, or 4% excluding zero-margin benefits pass-throughs; average worksite employees rose 2% to about 771,000, and the PEO margin was flat. Interest on funds held for clients rose 15% to $329m, and the average yield went up 30 basis points to 3.6%. ADP still expects Employer Services client revenue retention to fall by 10 to 30 basis points this fiscal year.

ADP shares were down 0.27% at $292.32 in pre-market trading as of 8:05 AM ET (13:05 CET) on 28 October, according to Nasdaq.com, with fewer than 1,700 shares traded by then; at 7:51 AM ET they had been down 3.53% at $282.75. They had fallen 2.66% to $293.11 in the regular session on 27 October. By 8:05 AM ET (13:05 CET), Polstob had found no named source giving a reason for the move.