AUTOMATIC DATA PROCESSING INC (ADP) Form 8-K — Oct 28, 2026
ADP reported strong Q1 fiscal 2027 results for the quarter ended September 30, 2026, with revenues up 6% year-over-year to $5.5 billion and net earnings up 11% to $1.1 billion. Diluted EPS rose 14% to $2.83 and adjusted diluted EPS rose 13% to $2.82, while adjusted EBIT margin expanded 130 basis points to 26.8%. The company exceeded its own expectations across revenue growth, margin expansion, and adjusted EPS growth, per CFO Peter Hadley. Interest on funds held for clients jumped 15% to $329 million on higher average client fund balances and yields, and Employer Services segment margin expanded 130 basis points.
Key figures
- Eps
- 2.83
- Guidance
- FY2027: revenue growth ~6%, adjusted EBIT margin expansion 70-90 bps, adjusted effective tax rate ~23%, diluted EPS growth 12-14%, adjusted diluted EPS growth 10-12% (raised from 9-11%)
- Revenue Yoy
- 6%
- Cash Position
- 3277000000
- Adjusted ebit
- 1470000000
- Diluted eps yoy
- 14%
- Adjusted eps yoy
- 13%
- Net earnings yoy
- 11%
- Dividends paid q1
- 677000000
- Shares outstanding
- 395600000
- Adjusted diluted eps
- 2.82
- Adjusted ebit margin
- 26.8%
- Share repurchases q1
- 758800000
- Interest on funds yoy
- +15%
- Yield on client funds
- 3.6% (+30 bps)
- Avg client funds balance
- $36.9 billion (+6%)
- Employer services margin
- 36.5% (+130 bps)
- Peo avg worksite employees
- 771000
- Us pays per control growth
- 2%
- Adjusted ebit margin change
- +130 bps
- Interest on funds held for clients
- 329300000
AI analysis
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