ADP beats earnings estimates with $2.82 per share, but revenue of $5.49 billion falls short
Revenue came in at $5.49 billion, below the $5.53 billion expected.
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Chart: ADP, one-minute prices, three sessions
ADP reported first-quarter earnings of $2.82 per share, $0.03 above expectations. Revenue was $5.49 billion, below the $5.53 billion expected.
The company raised its fiscal 2027 revenue growth outlook to about 6%, from a range of 5% to 6%. It also lifted its adjusted diluted earnings per share growth outlook to 10% to 12%, from 9% to 11%.
ADP raised its forecast for interest earned on funds it holds for clients to $1.59 billion to $1.61 billion, up from $1.54 billion to $1.56 billion.
Peter Hadley, ADP's chief financial officer, said the company's disciplined approach to investment is driving its work on artificial intelligence while still producing strong financial results.
The higher guidance points to confidence in ADP's own business lines, not to a view of the wider labor market. That distinction matters because ADP's weekly employment data has been the main labor gauge for markets in recent weeks, with official data scarce. The beat and the raised outlook reflect pricing, client retention and the cost discipline Hadley linked to AI, not a change in the hiring trends shown in the employment report. Investors using ADP data to read Federal Reserve policy should treat this release separately from the payroll processing figures, which have shown gradual firming since August.
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