Q3 26 EPS
$3.37
BEAT +2.26%
Est. $3.30
Q3 26 Revenue
$5.94B
BEAT +1.55%
Est. $5.85B
vs S&P Since Q3 26
+27.7%
BEATING MARKET
ADP +36.3% vs S&P +8.7%
Market Reaction
Did ADP Beat Earnings? Q3 2026 Results
Automatic Data Processing posted a confident fiscal third-quarter 2026, beating Wall Street expectations for the fourth consecutive quarter as disciplined segment execution and a favorable client funds environment pushed results ahead of forecasts. T… Read more Automatic Data Processing posted a confident fiscal third-quarter 2026, beating Wall Street expectations for the fourth consecutive quarter as disciplined segment execution and a favorable client funds environment pushed results ahead of forecasts. The payroll and human capital management giant reported earnings per share of $3.37, clearing the $3.30 consensus estimate by 2.26%, while revenue climbed 7.0% year over year to $5.94 billion, edging past the $5.85 billion consensus by 1.55%. The most material driver behind the outperformance was a 14% surge in interest on funds held for clients, which reached $403.90 million as average client fund balances grew 9% to $48.3 billion and yields ticked higher. Adjusted EBIT expanded 10% to $1.79 billion, with margin widening 80 basis points to 30.2%. Encouraged by the momentum, management raised its full-year guidance, now targeting revenue growth of 6% to 7% and adjusted diluted EPS growth of 10% to 11%, reflecting confidence in sustained demand across both its Employer Services and PEO segments.
Key Takeaways
- • Employer Services revenue grew 7% with segment margin expanding 130 basis points to 41.1%
- • Interest on funds held for clients increased 14% to $404 million driven by 9% growth in average client fund balances to $48.3 billion
- • Average interest yield on client funds increased 10 basis points to 3.3%
- • U.S. pays per control increased 1%
- • Average PEO worksite employees grew 2% to approximately 762,000
- • Share repurchases reduced diluted shares by 1%, contributing to 10% EPS growth
ADP YoY Financials
Q3 2026 vs Q3 2025, source: SEC Filings
ADP Revenue by Segment
With YoY comparisons, source: SEC Filings
“We delivered a strong quarter, and it reflects what ADP does best – executing with precision for our clients while continuing to invest in defining the future of HCM. Organizations around the world trust us as their partner for their most critical workforce functions because we have the data and expertise to address the rapidly changing world of work. AI is adding new layers of complexity to our clients' work, and we are well into building the capabilities to meet that moment. We are primed to capture and harness the significant opportunity ahead for the HCM industry.”
— Maria Black, Q3 2026 Earnings Press Release
ADP Earnings Trends
ADP vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ADP EPS Trend
Earnings per share: estimate vs actual
ADP Revenue Trend
Quarterly revenue: estimate vs actual
ADP Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 26 BEAT FY | $2.60 | $2.64 | +1.58% | $5.47B | +0.61% |
| FY Full Year | $11.08 | $11.12 | +0.39% | $21.95B | +0.55% |
| Q3 26 BEAT | $3.30 | $3.37 | +2.26% | $5.94B | +1.55% |
| Q2 26 BEAT | $2.57 | $2.62 | +2.00% | $5.36B | +0.39% |
| Q1 26 BEAT | $2.44 | $2.49 | +1.94% | $5.18B | +0.81% |
| Q4 25 BEAT FY | $2.23 | $2.23 | +0.16% | $5.13B | +1.62% |
| FY Full Year | $9.98 | $9.98 | -0.01% | $20.56B | +0.40% |
| Q3 25 BEAT | $2.97 | $3.06 | +2.93% | $5.55B | +1.10% |