ADP tops fourth-quarter revenue estimates on payroll software demand

Automatic Data Processing

29/07/2026 13:10

Payroll firm Automatic Data Processing ADP.O reported fourth-quarter revenue above Wall Street estimates on Wednesday, helped by strong spending by enterprise clients on its payroll and human resources software.
ADP provides cloud-based human capital management solutions, including payroll, benefits administration and HR management services.
ADP said earlier this year investments in AI, service tools and product innovation are improving productivity, reducing costs and enhancing the client experience.
The company reported fourth-quarter revenue of $5.5 billion. Analysts on average expected $5.44 billion, according to data compiled by LSEG .
Adjusted diluted earnings per share of $2.64 exceeded an estimated $2.59.
ADP forecast fiscal 2027 revenue growth of 5% to 6%, while analysts were expecting 5.8%. 
"With AI tools now being embedded across our product, service and sales teams... we enter fiscal 2027 in a strong position to drive growth in our business," ADP finance chief Peter Hadley said.
Revenue from its PEO Services segment grew 7% in the reported quarter.


 (Reporting by Anzar Mehraj in Bengaluru; Editing by Joyjeet Das)
 ((Anzar.Mehraj@thomsonreuters.com;))