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ADP

ADP Q4 2026 Earnings

Reported Jul 29, 2026 at 6:57 AM ET · SEC Source

Q4 26 EPS

$2.64

BEAT +1.58%

Est. $2.60

Q4 26 Revenue

$5.47B

BEAT +0.61%

Est. $5.44B

vs S&P Since Q4 26

-4.4%

TRAILING MARKET

ADP +1.6% vs S&P +6.0%

Full Year 2026 Results

FY 26 EPS

$11.12

BEAT +0.39%

Est. $11.08

FY 26 Revenue

$21.95B

BEAT +0.55%

Est. $21.83B

Market Reaction

Did ADP Beat Earnings? Q4 2026 Results

Automatic Data Processing closed out fiscal 2026 on a firm note, posting fourth-quarter earnings of $2.64 per share to edge past the $2.60 consensus estimate by 1.58%, extending the payroll giant's streak of beating EPS expectations to five consecuti… Read more Automatic Data Processing closed out fiscal 2026 on a firm note, posting fourth-quarter earnings of $2.64 per share to edge past the $2.60 consensus estimate by 1.58%, extending the payroll giant's streak of beating EPS expectations to five consecutive quarters. Revenue of $5.47 billion edged ahead of the $5.44 billion consensus and reflected 6.8% year-over-year growth, with ADP finishing at the high end of its own guidance range across revenue growth, margin expansion, and adjusted EPS. The primary engine behind the quarter was Employer Services, where 7% reported revenue growth and 90 basis points of margin expansion to 34.4% anchored results, while a 15% rise in interest on client funds to $355.40 million, driven by an $41.00 billion average client balance and a yield of 3.5%, provided a meaningful tailwind. Investor attention had centered as much on AI's potential disruption to the HCM industry as on the raw figures, and management's confident tone around ADP's positioning helped frame a fiscal 2027 outlook calling for revenue growth of 5% to 6% and adjusted diluted EPS growth of 9% to 11%.

Key Takeaways

  • • Employer Services new business bookings increased 6% for the year to $2.2 billion
  • • Employer Services client revenue retention remained flat at 92.1%
  • • Interest on funds held for clients increased 15% to $355 million in Q4
  • • Average client funds balances increased 8% to $41.0 billion in Q4
  • • Average interest yield on client funds increased 20 basis points to 3.5% in Q4
  • • U.S. pays per control increased 1% for Q4 and for the fiscal year
  • • Average worksite employees paid by PEO Services increased 2% to about 775,000 in Q4
  • • Employer Services segment margin increased 90 basis points in Q4

ADP Forward Guidance & Outlook

For fiscal 2027, ADP expects consolidated revenue growth of 5% to 6%, adjusted EBIT margin expansion of 70 to 90 basis points, adjusted effective tax rate of approximately 23%, diluted EPS growth of 11% to 13%, and adjusted diluted EPS growth of 9% to 11%. Employer Services revenue is expected to grow 5% to 6% with new business bookings growth of 4% to 7%, client revenue retention decrease of 10 to 30 basis points, and U.S. pays per control growth of 0% to 1%. PEO Services revenue is expected to grow 5% to 7%, with revenues excluding zero-margin pass-throughs growing 3% to 5% and average worksite employee count growth of about 2%. Interest on funds held for clients is expected to be $1.540 to $1.560 billion, based on client funds balance growth of 3% to 4% and an average yield increase to approximately 3.7%.

24/7 Wall St

ADP YoY Financials

Q4 2026 vs Q4 2025, source: SEC Filings

24/7 Wall St

ADP Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q4 26

“ADP's strong fiscal 2026 performance is grounded in the long-term value that matters most to our clients: trust. This is a defining moment for the future of work. AI is reshaping how work gets done, what roles look like, and how teams are organized. This is making HCM more critical than ever and companies need a partner they can trust to help navigate this shift. Our impressive financial results, strong Employer Services retention, and record client satisfaction scores are evidence that ADP is purpose-built for this, and we've never been better positioned to deliver for our clients.”

— Maria Black, Q4 2026 Earnings Press Release

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