Key Highlights

  • Consensus EPS of 2.77 compares with fiscal 2026 full-year adjusted diluted EPS of 11.12 and diluted EPS of 10.94.
  • Consensus revenue of USD 5.48 billion compares with fiscal 2026 total revenues of USD 21,947.4 million for the full year.
  • Management guided fiscal 2027 revenue growth of 5% to 6% and adjusted diluted EPS growth of 9% to 11%.
  • Fiscal 2027 client funds interest revenue is guided at USD 1.54 billion to USD 1.56 billion on a 3.7% yield.

Automatic Data Processing (NASDAQ:ADP) reports first-quarter results on Wednesday, Oct. 28, before the market opens. Consensus stands at EPS of 2.77 on revenue of USD 5.48 billion, and the company has a market capitalization of USD 119.32 billion.

Automatic Data Processing provides human capital management and payroll solutions through its Employer Services and PEO segments. Its latest filing is the annual report for fiscal 2026, which ended June 30, 2026, so the comparisons below use full-year figures and the fourth-quarter call.

Estimates Against Fiscal 2026 and Fiscal 2027 Guidance

The EPS estimate of 2.77 and the revenue estimate of USD 5.48 billion are for the fiscal first quarter, and the annual report states no quarterly dollar figures to compare them against. Fiscal 2026 adjusted diluted EPS was 11.12, up 11%, and diluted EPS was 10.94 against 9.98.

Fiscal 2026 total revenues were USD 21,947.4 million against USD 20,560.9 million, and net earnings were USD 4,413.5 million against USD 4,079.7 million.

What Management Guided and What It Left Open

Management guided fiscal 2027 consolidated revenue growth of 5% to 6%, adjusted diluted EPS growth of 9% to 11% and adjusted EBIT margin expansion of 70 to 90 basis points, with an effective tax rate of approximately 23%. It guided Employer Services new business bookings growth of 4% to 7% and PEO average worksite employee growth of approximately 2%.

Management guided client retention to decline 10 to 30 basis points from 92.1%, citing a potential rise in out-of-business rates, and said its outlook assumes a broadly stable macroeconomic environment. It gave no fiscal first-quarter dollar guidance.

Fourth-Quarter and Segment Detail

Fourth-quarter revenue grew 7%, adjusted EBIT margin expanded 140 basis points and adjusted EPS grew 17%. Employer Services margin for the year was 36.7% and PEO margin was 13.1%, down 110 basis points from faster growth in zero-margin pass-through revenues.

PEO revenues were USD 7,115.8 million, and PEO average worksite employees were 775,000 in the fourth quarter. Interest on funds held for clients was USD 1,354.8 million against USD 1,189.1 million.

Costs, Capital Return and Balance Sheet

Total costs of revenues were USD 11,760.2 million and SG&A expenses were USD 4,408.2 million. Earnings before income taxes were USD 5,730.3 million against USD 5,310.1 million. The company repurchased 8.6 million shares for USD 2.1 billion, with USD 6 billion of authorization remaining.

Cash and cash equivalents were USD 4,230.1 million against USD 3,347.8 million, and long-term debt was USD 4,964.1 million against USD 3,974.7 million. Total assets were USD 63,193.3 million. The estimates table lists a market capitalization of USD 119.32 billion.

Items to Track in the Report

Reported EPS against 2.77 and revenue against USD 5.48 billion are the headline comparisons. Other markers are client funds interest, Employer Services bookings, retention and PEO margin.