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ADP

ADP Q3 2026 Earnings

Reported Apr 29, 2026 at 6:55 AM ET · SEC Source

Q3 26 EPS

$3.37

Q3 26 Revenue

$5.94B

BEAT +1.55%

Est. $5.85B

vs S&P Since Q3 26

+6.4%

BEATING MARKET

ADP +7.6% vs S&P +1.3%

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 Forward Guidance & Outlook

ADP raised its full-year fiscal 2026 guidance. Revenue growth is now expected at 6% to 7% (up from ~6%). Adjusted EBIT margin expansion is expected at 70 to 80 basis points (up from 50 to 70 bps). Adjusted diluted EPS growth is now expected at 10% to 11% (up from 9% to 10%), with an adjusted effective tax rate of approximately 23%. Employer Services revenue growth is expected at 6% to 7%, with new business bookings growth of 4% to 7%, client revenue retention decrease of 20 basis points to flat, and U.S. pays per control increase of about 1%. PEO Services revenue growth is expected at 6% to 7%, with revenue excluding zero-margin benefits pass-throughs growth of 4% to 5% and average worksite employee count growth of about 2%. Interest on funds held for clients is expected at $1.340 to $1.350 billion, based on anticipated client fund balance growth of about 6% and an average yield increase to approximately 3.4%.

24/7 Wall St

ADP YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

24/7 Wall St

ADP Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26

“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

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