Automatic Data Processing (ADP) revenues increased in the first quarter of fiscal year 2027 by 6.1% y/y to 5.49 billion USD, and earnings per share (reported) increased by 13.7% y/y to 2.83 USD.

Quarterly results#

Earnings per share (reported, basic) was 2.84 USD (13.6% y/y).

Company guidance#

For the full fiscal year 2027, the company expects revenue growth of 6.0%, (adjusted) earnings per share growth in the range of 10.0% – 12.0%, and earnings per share growth of 12.0% – 14.0%. The company also forecasts interest income at 1.59 billion USD – 1.61 billion USD and a tax rate of 23.0%.

What management says#

Management emphasized that progress in the field of artificial intelligence, especially regarding the ADP Assist assistant, is significant. According to management, the selection of subsequent AI agents is based on solutions that provide measurable results to clients and solve real problems. Management indicated that the new agreement regarding the inclusion of payroll into the banking platform is a key element of strategic priority, and similar discussions are ongoing. According to management, client employment results in the quarter were satisfactory and represent a continuation of growing momentum. Management believes it is in the interest of shareholders to allocate part of the improvement in results to dividends and part to further development.