ADP Q1 FY2027: revenue up 6.1%, EPS beats, outlook raised
ADP beat on the bottom line and raised its full-year targets: revenue rose 6.1% to $5.49 billion, adjusted EPS of $2.82 came in about $0.03 above the $2.79 consensus, and management lifted both revenue and adjusted EPS growth guidance. Read it as steady, broad-based compounding — Employer Services and PEO both grew about 6% to 7% — with a meaningful slice of profit still coming from client-funds interest.
1 · Expected vs. Actual
Free preview belowDiluted EPS was $2.83 and adjusted EPS $2.82, about $0.03 — roughly 0.9% — above the $2.79 consensus estimate. Adjusted EPS rose 13% from $2.49, helped by adjusted EBIT margin expanding 130 basis points to 26.8% and a 2% smaller diluted share count. The effective tax rate was 22.7% on both a reported and an adjusted basis.
Revenue was $5.49 billion, up 6.1% from $5.18 billion a year earlier, and the company says the 6% growth also holds on an organic constant currency basis. Employer Services grew 6% to $3.69 billion and PEO Services grew 7% to $1.81 billion. With no consensus revenue number in the input, the clean read is that quarterly growth matches the ~6% full-year rate management now guides to.
Log in to read 35 analyses a week for free
Create a free account to read 35 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-03
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.