ADP's earnings beat, rising client funds income and margin gains support a stronger fiscal 2027 outlook despite PEO pressure.
ADP beats Q4 earnings and revenue estimates, as broad-based growth, client funds income and productivity lift margins and profits.
Although the revenue and EPS for ADP (ADP) give a sense of how its business performed in the quarter ended June 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Automatic Data Processing NASDAQ: ADP reported fourth-quarter fiscal 2026 revenue growth of 7%, adjusted EBIT margin expansion of 140 basis points and adjusted earnings-per-share growth of 17%, capping a year in which the company said results reached the high end of its updated guidance ranges.
Automatic Data Processing (ADP) came out with quarterly earnings of $2.64 per share, beating the Zacks Consensus Estimate of $2.59 per share. This compares to earnings of $2.26 per share a year ago.
Automatic Data Processing said its revenue and earnings should keep rising in fiscal 2027 after its latest completed quarter saw growth in both its employer services and human resources outsourcing businesses.
ADP heads into the Q4 earnings release with revenues expected to rise 5.9% and EPS likely to grow 14.6%, fueled by segment gains and client funds growth.
Besides Wall Street's top-and-bottom-line estimates for ADP (ADP), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended June 2026.
ADP shares surge 23% in three months as margin expansion, strong earnings growth, steady dividends and solid liquidity boost investor confidence.
ADP (ADP) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
ADP (ADP) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.