Key insights
- ADP raised its full-year revenue and adjusted earnings outlook after a strong Q3, driven by investments in AI. The company now projects revenue growth of 6-7% and adjusted earnings growth of 10-11%. This positive outlook and earnings beat could signal continued strength in the labor market and business investment, providing a slightly bullish signal for US equities.
(Note: my back of env valuation in the comments section)
ADP Lifts Outlook as Profit, Revenue Rise - wsj
https://www.wsj.com/articles/adp-lifts-outlook-as-3q-profit-revenue-rise-af7b0b6b
The payroll and workplace-administration company is investing in artificial intelligence to expand its payroll and workplace services
By Connor Hart
April 29, 2026 at 7:36 am ET
- Automatic Data Processing raised its full-year revenue and adjusted earnings outlook after reporting higher third-quarter profit and revenue.
- The company now projects full-year revenue growth of 6% to 7% and adjusted earnings growth of 10% to 11%.
- For the fiscal third quarter, ADP posted a $1.36 billion profit on $5.94 billion in revenue, investing in AI capabilities.
Automatic Data Processing ADP 0.98%increase; green up pointing triangle raised its outlook for the year after logging higher profit and revenue during the third quarter, as it invests in artificial intelligence to expand its payroll and workplace services.
The payroll and workplace-administration company said Wednesday it now expects full-year revenue to grow 6% to 7%, compared with a prior outlook for roughly 6% year-over-year growth.
Adjusted earnings are now projected to be up 10% to 11% from last year, compared with a prior forecast for a 9% to 10% increase.
Shares climbed 4.4%, to $207.98, in premarket trading.
The outlooks came as Chief Financial Officer Peter Hadley said ADP topped expectations for revenue growth and adjusted earnings during the recent quarter.
“ADP has the financial strength and scale to invest with confidence in AI capabilities across our products, service delivery and sales organization to fuel our future growth, while continuing to deliver on our financial commitments,” he continued.
In its fiscal third quarter ended March 31, ADP posted a profit of $1.36 billion, or $3.38 a share, compared with $1.25 billion, or $3.06 a share, a year earlier.
Stripping out one-time items, earnings were $3.37 a share. Analysts polled by FactSet had expected adjusted earnings of $3.29 a share.
Total revenues were up 7% to $5.94 billion, ahead of Wall Street models for $5.82 billion.
———