Q1 26 EPS
$2.49
BEAT +1.94%
Est. $2.44
Q1 26 Revenue
$5.18B
BEAT +0.81%
Est. $5.13B
vs S&P Since Q1 26
-23.9%
TRAILING MARKET
ADP -19.1% vs S&P +4.8%
Market Reaction
Did ADP Beat Earnings? Q1 2026 Results
Automatic Data Processing kicked off fiscal 2026 on firm footing, posting first-quarter revenue of $5.18 billion, up 7.1% year-over-year and ahead of the $5.13 billion consensus estimate by 0.81%, while diluted EPS of $2.49 edged past the $2.44 analy… Read more Automatic Data Processing kicked off fiscal 2026 on firm footing, posting first-quarter revenue of $5.18 billion, up 7.1% year-over-year and ahead of the $5.13 billion consensus estimate by 0.81%, while diluted EPS of $2.49 edged past the $2.44 analyst forecast by 1.94%. The headline beat was underpinned by a standout performance in the client funds extended investment strategy, where interest on funds held for clients surged 13% to $286.80 million as average client fund balances climbed to $34.9 billion and yields improved to 3.3%, meaningfully lifting earnings quality. Both the Employer Services and PEO Services segments contributed equally at the top line, each growing 7%, though margin pressure from rising benefits pass-through costs in PEO was a notable offset. CFO Peter Hadley noted results exceeded internal expectations across revenue and margin, and management held its full-year outlook steady, targeting consolidated revenue growth of 5% to 6% and adjusted diluted EPS growth of 8% to 10%, even as one analyst firm cut its price target following the print.
Key Takeaways
- • Solid new business bookings growth
- • Strong client revenue retention and record client satisfaction levels
- • Higher client funds interest revenue, up 13% driven by 7% growth in average client fund balances and 20 bps yield improvement
- • Net impact from client funds extended strategy increased 29% to $263.7 million
- • Average worksite employees paid by PEO Services increased 2% to about 754,000
ADP YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
ADP Revenue by Segment
With YoY comparisons, source: SEC Filings
“Fiscal 2026 started off with solid financial performance and meaningful progress across our strategic priorities. We continue to drive strong outcomes for clients, as exemplified by our record client satisfaction levels and continued robust retention results. We also continue to infuse AI into our products and across our operations to solve real-world HR problems and fundamentally shift how work gets done.”
— Maria Black, Q1 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
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 | — | $3.37 | — | $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 | +0.00% | $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% |