Quarterly ResultApr 29, 2026, 07:01 AM
ADP Q3 Revenue +7% to $5.9B; EPS +10% to $3.38; FY26 Guidance Raised
AI Summary
ADP reported strong third-quarter fiscal 2026 results, with revenues increasing 7% to $5.9 billion and diluted EPS rising 10% to $3.38. Net earnings grew 9% to $1.4 billion, and adjusted EBIT increased 10% to $1.8 billion, with an 80 basis point expansion in adjusted EBIT margin. The company also raised its full-year fiscal 2026 guidance for revenue, adjusted EBIT margin, and adjusted diluted EPS growth, reflecting confidence in future performance.
Key Highlights
- Q3 Revenue increased 7% to $5.9 billion (6% organic constant currency).
- Q3 Diluted EPS increased 10% to $3.38; Adjusted diluted EPS increased 10% to $3.37.
- Q3 Net earnings increased 9% to $1.4 billion; Adjusted EBIT increased 10% to $1.8 billion.
- Q3 Adjusted EBIT margin expanded 80 basis points to 30.2%.
- Employer Services revenue increased 7%; PEO Services revenue increased 7%.
- Interest on funds held for clients increased 14% to $404 million.
- Raised FY26 revenue growth outlook to 6-7% and adjusted diluted EPS growth to 10-11%.
- Raised FY26 adjusted EBIT margin expansion outlook to 70-80 basis points.