The 5-6% revenue growth guidance for FY2027 signals a deceleration from the 7% reported rate, which may temper near-term sentiment. Watch the market's reaction to the margin expansion (70-90 bps) and whether the $91.1M restructuring charge signals further cost actions. The beat was modest and guidance is cautious, suggesting limited upside catalysts in the near term.
Price Chart
Executive Summary
ADP reported Q4 FY2026 revenue of $5.47B (+7% YoY) and adjusted diluted EPS of $2.64 (+17% YoY), marginally beating consensus estimates ($2.60) by about 1.5%. Full-year revenue reached $21.9B (+7% YoY) and adjusted EPS was $11.12 (+11% YoY). The FY2027 outlook calls for revenue growth of 5-6% (decelerating from 7% actual) and adjusted EPS growth of 9-11%, reflecting cautious guidance amid a business alignment program charge of $91.1M.
Key Financial Metrics
Key Facts
- Q4 FY2026 revenue $5.47B (+7% YoY to $5.12B), adjusted EPS $2.64 (beat consensus $2.60 by 1.5%)
- Full FY2026 revenue $21.9B (+7% YoY), adjusted EPS $11.12 (+11% YoY)
- FY2027 guidance: revenue growth 5-6%, adjusted EPS growth 9-11%, adjusted EBIT margin expansion 70-90 bps
- Employer Services segment margin +90 bps in Q4; PEO Services margin -100 bps
- Business alignment program charge of $91.1M in Q4 (severance $89.1M + advisory $2.0M)
- Interest on funds held for clients +15% to $355M in Q4; average yield +20 bps to 3.5%
- Client revenue retention flat at 92.1%; new business bookings +6% to $2.2B for fiscal year
Financial Impact
Q4 revenue $5,473.8M, net earnings $978.6M, adjusted diluted EPS $2.64 on 399.7M diluted shares
Risk Factors
- Decelerating revenue growth guidance (5-6% vs 7% actual) could disappoint growth expectations
- PEO Services segment margin declining (down 100 bps in Q4) due to competitive pressures and pass-through costs
- Client revenue retention guided lower by 10-30 bps in FY2027 vs flat in FY2026
- Interest rate sensitivity: client funds yield projected at 3.7% vs current 3.4%, but Fed rate path is uncertain
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000008670-26-000025 |
| Document: adp-20260729.htm | 0000008670-26-000025 |
| Document: 0000008670-26-000025-index-headers.html | 0000008670-26-000025 |
| Document: 0000008670-26-000025-index.html | 0000008670-26-000025 |
| Document: 0000008670-26-000025.txt | 0000008670-26-000025 |
| 8-K Data (Synthetic) | 0000008670-26-000025 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 4, 2026 28d ago | Insider Cluster | $277.62 $276.63 | ▼ −0.36% | ▲ +0.85% | $258.36 (−6.94%) |
Sep 4, 2026 28d ago | Insider Cluster | $277.62 $276.63 | ▼ −0.36% | ▲ +0.85% | $258.36 (−6.94%) |
Sep 3, 2026 29d ago | Insider Cluster | $283.53 $268.26 | ▼ −5.39% | ▼ −4.24% | $258.36 (−8.88%) |
Aug 24, 2026 5w ago | Insider Cluster | $283.01 $286.16 | ▲ +1.11% | ▲ +0.64% | $258.36 (−8.71%) |
Jul 29, 2026 9w ago | 8-K | $273.37 $269.90 | ▼ −1.27% | ▼ −6.80% | $258.36 (−5.49%) |
Jul 20, 2026 10w ago | Institutional Cluster | $246.22 $254.98 | ▲ +3.56% | ▲ +4.79% | $258.36 (+4.93%) |
Jun 21, 2026 14w ago | Institutional Cluster | $214.60 $223.55 | ▲ +4.17% | ▲ +6.24% | $258.36 (+20.39%) |
Mar 30, 2026 26w ago | Court Ruling | $205.41 $203.47 | ▼ −0.94% | ▼ −5.24% | $258.36 (+25.78%) |
Mar 10, 2026 29w ago | Court Ruling | $217.22 $209.63 | ▼ −3.49% | ▼ −2.59% | $258.36 (+18.94%) |
US Market Status
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