Automatic Data Processing, Inc. (ADP) released its first quarter fiscal 2027 results on October 28, 2026, reporting a 6% increase in total revenues to $5.5 billion. This growth was driven by a 6% increase in organic constant currency. Net earnings rose 11% to $1.1 billion, while adjusted EBIT increased 12% to $1.5 billion, resulting in an adjusted EBIT margin of 26.8%, an expansion of 130 basis points. Diluted earnings per share (EPS) increased 14% to $2.83, with adjusted diluted EPS rising 13% to $2.82.
The company’s Employer Services segment saw revenues increase 6% on both a reported and organic basis, with U.S. pays per control up 2%. The PEO Services segment reported a 7% revenue increase, with average worksite employees paid rising to about 771,000. Interest on funds held for clients also grew 15% to $329 million, supported by an increase in average client funds balances to $36.9 billion and an average yield of 3.6%.
ADP has updated its fiscal 2027 outlook, raising guidance for revenue and adjusted diluted EPS growth. The company now expects revenue growth of approximately 6% and adjusted diluted EPS growth of 10% to 12%. The outlook includes an adjusted EBIT margin expansion of 70 to 90 basis points and an adjusted effective tax rate of approximately 23%. The company also projects interest on funds held for clients to generate $1.59 to $1.61 billion for the year.
