ADP 1Q Net Up, Company Boosts FY27 Adjusted EPS View Amid AI Adoption

By Rob Curran

ADP's fiscal first-quarter net income rose and the payroll company boosted its projection for adjusted earnings-per-share growth in fiscal 2027 as it incorporates efficiencies from artificial intelligence.

The Roseland, N.J.-based payroll and work-place administration company posted earnings of $1.13 billion, or $2.83 a share, for the quarter ended Sept. 30, up from $1.01 billion, or $2.49 a share, a year earlier.

Stripping out certain one-time items, ADP reported adjusted earnings of $2.82 a share, topping the mean analyst estimate of $2.77 a share, as per FactSet.

Revenue rose 6% to $5.49 billion, edging the average analyst estimate of $5.48 billion.

For the fiscal year ending in July, ADP targeted earnings growth in a range between 12% and 14%. The company projected adjusted earnings per-share increase in a range between 10% and 12%, up from a prior estimate of 9% to 11% growth. The new guidance would translate to $12.45 a share on the high end, compared with the Wall Street peg of $12.26 a share. ADP projected revenue growth of about 6% for the year, narrowed from a previous forecast of 5%-to-6% growth. For the year ended July 2026, ADP logged adjusted earnings of $11.12 a share on revenue of $21.9 billion.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

October 28, 2026 07:41 ET (11:41 GMT)