Automatic Data Processing Tops Q1 2027 Profit Forecast With $2.82 EPS

ADP reported fiscal Q1 net income of $1.13B, or $2.83 per share, exceeding analyst expectations of $2.78 per share. Revenue was $5.49B, also above forecasts. ADP shares are up 11% YTD, 1.5% over 12 months.

Automatic Data Processing (ADP) reported Q1 2027 earnings, raising full-year revenue growth guidance to 6% and adjusted EPS growth to 10-12%. The company highlighted AI-driven operational efficiency, new partnerships like PNC Bank, and the expansion of Lyric HCM in Europe. ADP's 'The Zone' AI platform reached 60% deployment, reducing service contacts by 7% YoY. Management emphasized strategic investments in AI and global scaling.

ADP reported Q1 fiscal 2027 earnings of $2.82 per share on $5.5B revenue, beating estimates. Shares fell 1.8% premarket. The company raised its full-year outlook, targeting 6% revenue growth and 10-12% EPS growth, citing AI advancements and client funds interest revenue. ADP highlighted its strong market position and long-term financial stability.

ADP reported higher Q1 profit and revenue, raising its FY27 adjusted earnings and revenue growth outlook to 10-12% and 6%, respectively, while confirming margin growth. Shares rose 0.81% premarket. FY26 earnings were $11.12 per share, with revenue at $21.95 billion.

Automatic Data Processing (ADP) shares fell 3.5% premarket after its fiscal Q1 2027 results, despite beating earnings and revenue estimates and raising full-year guidance. Investors may have been disappointed by steady adjusted EBIT margin guidance and a slowing labor market, as indicated by ADP's NER Pulse report. The stock had been trading near its 52-week high before the earnings release.

ADP raised its FY2027 earnings and revenue growth forecasts after Q1 results exceeded Wall Street estimates. The company maintained its adjusted EBIT margin outlook. ADP is a publicly traded company on the NASDAQ under the ticker symbol ADP.