Automatic Data Processing : ADP Announces Third Quarter Fiscal 2026 Financial Results Presentation

Published: 2026-04-29 09:34:13 ET ADP

Published on 04/29/2026 at 09:34 am EDT

April 29, 2026

7% revenue growth and 10% adjusted diluted EPS1 growth

Solid Employer Services new business bookings growth

Employer Services retention and overall client satisfaction reached new record highs for a third quarter

Raising fiscal 2026 guidance for revenue, adjusted EBIT margin, and adjusted diluted EPS growth

Leveraging data advantages, domain expertise, and trusted brand to

lead the HCM industry through its AI transformation

Continuing to deploy ADP Assist agents to address workforce challenges across payroll and HR

Expanding agentic AI ecosystem with launch of a dedicated space

within ADP Marketplace for partner companies' AI agents

Scaling GenAI capabilities across service operations through The Zone

1. For a reconciliation of this non-GAAP financial metric to its closest comparable GAAP metric see our Q3 fiscal 2026 earnings release available at investors.adp.com.

TOTAL REVENUES

6% Organic Constant Currency1

ADJUSTED EBIT1

Adjusted EBIT1 Margin 80 bps

ADJUSTED DILUTED EPS1

S5,553M

S1,630M

S5,939M

S1,791M

S3.37

S3.06

Q3 FY25 Q3 FY26

For a reconciliation of these non-GAAP financial metrics to their closest comparable GAAP metrics see our Q3 fiscal 2026 earnings release available at investors.adp.com.

(Unaudited)

Q3 FISCAL 2026 FINANCIAL HIGHLIGHTS

5% Organic Constant Currency1

S4,036M

S3,768M

Q3 FY25 Q3 FY26

U.S. pays per control 1%

Average client funds balances 9%

Average client funds yield of 3.3%, up from 3.2% in prior year

41.1%

39.8%

Q3 FY25 Q3 FY26

Margin increase driven by operational productivity improvements and client funds interest revenue growth

January 28,

2026

April 29,

2026

Revenues

~6%

6 to 7%

ES New Business Bookings

4 to 7%

Client Revenue Retention

(30) to (10) bps

(20) bps to flat

U. S. Pays Per Control

~flat

~1%

1. For a reconciliation of this non-GAAP financial metrics to its closest comparable GAAP metric see our Q3 fiscal 2026 earnings release available at investors.adp.com.

(Unaudited)

Q3 FISCAL 2026 EMPLOYER SERVICES SEGMENT RESULTS

January 28,

2026

April 29,

2026

Revenues Revenues Ex ZMPT

Average WSEs

5 to 7%

3 to 5%

~2%

6 to 7%

4 to 5%

~2%

S1,906M 14.2%

S1,789M

13.0%

Q3 FY25 Q3 FY26

Revenues excluding zero-margin benefits pass-throughs (ZMPT) 5%

Average worksite employees (WSEs)

2% to about 762,000

Q3 FY25 Q3 FY26

Margin decline driven mainly by zero-margin pass-through growth, higher SUI costs, and higher selling expenses

(Unaudited)

Q3 FISCAL 2026 PEO SERVICES SEGMENT RESULTS

Fiscal 2025

(unaudited)

July 30, 2025

Fiscal 2026

Outlook

October 29, 2025

Fiscal 2026

Outlook

January 28, 2026

Fiscal 2026 Outlook1

April 29, 2026

Fiscal 2026 Outlook1

Revenues

320,561M

5 to 6%

~6%

6 to 7%

Total ADP

Adj. EBIT Margin2

Adj. Effective Tax Rate2

26.0%

23.2%

50 to 70 bps

~23%

50 to 70 bps

~23%

50 to 70 bps

~23%

70 to 80 bps

~23%

Adj. Diluted EPS2

310.01

8 to 10%

9 to 10%

10 to 11%

Revenues

313,883M

5 to 6%

~6%

6 to 7%

Employer

ES New Business Bookings

32.1B

4 to 7%

Services

Client Revenue Retention

92.1%

(30) to (10) bps

(20) bps to flat

U.S. Pays Per Control

0 to 1%

~flat

~1%

PEO

Services

Revenues

Revenues Ex Zero-Margin Pass-throughs Average WSEs

36,690M

32,401M

748,000

5 to 7%

3 to 5%

2 to 3%

5 to 7%

3 to 5%

2 to 3%

5 to 7%

3 to 5%

~2%

6 to 7%

4 to 5%

~2%

Average Client Funds Balances

337.6B

2 to 3%

3 to 4%

4 to 5%

~6%

Client

Yield on Client Funds Portfolio

3.2%

~3.4%

Funds

Client Funds Interest Revenue

31,189M

31,290 to 31,310M

31,300 to 31,320M

31,310 to 31,330M

31,340 to 31,350M

Interest

Net Impact from Client Funds Extended Strategy

31,073M

31,250 to 31,270M

31,260 to 31,280M

31,270 to 31,290M

31,300 to 31,310M

Outlook contemplates the anticipated impact of foreign currency in revenue and operating results.

For a reconciliation of these non-GAAP financial metrics to their closest comparable GAAP metrics see our Q3 fiscal 2026 earnings release available at investors.adp.com.

FISCAL 2026 OUTLOOK

Average Balances (S)

Fiscal 2025

(unaudited)

April 29, 2026

Fiscal 2026 Outlook1

Client Short

8.5B

~9.2B

Client Extended

15.5B

~16.3B

Client Long

13.6B

~14.4B

Funds Held for Clients1

37.6B

~39.9B

Corporate Extended Interest Income2

7.0B

~7.8B

Short-term Financing to Support Client Funds Extended Strategy

7.0B

~7.8B

Net Impact from Client Funds Extended Strategy

Average Rates

Fiscal 2025

(unaudited)

April 29, 2026

Fiscal 2026 Outlook1

4.2%

~3.3%

2.7%

~3.5%

3.1%

~3.3%

3.2%

~3.4%

3.2%

~3.6%

4.8%

~4.1%

Interest Income / (Expense) (S)

Fiscal 2025

(unaudited)

April 29, 2026

Fiscal 2026 Outlook1

355M

305 - 310M

411M

565 - 570M

423M

~470M

1,189M

1,340 - 1,350M

225M

~280M

(341)M

~(320)M

1,073M

1,300 - 1,310M

Interest on the Extended Portfolio flows into two separate sections of the Statements of Consolidated Earnings.

Reported as Interest on Funds Held for Clients in the revenue section of the Statements of Consolidated Earnings.

A component of Interest Income on Corporate Funds, reported within Other Income, net, on the Statements of Consolidated Earnings.

APPENDIX: CLIENT FUNDS INVESTMENT STRATEGY DETAIL

Disclaimer

ADP - Automatic Data Processing Inc. published this content on April 29, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2026 at 13:33 UTC.