Q4 2026 Automatic Data Processing Inc Earnings Call Transcript

Jul 29, 2026 / 12:30 PM GMT

Release Date Price: ARS71850 (+2.20%)

Transcript 8-K

Key Points

Positve

Automatic Data Processing Inc (ADP) reported a strong fourth quarter with 7% revenue growth and 17% adjusted EPS growth.
Employer Services retention remained strong at 92.1%, exceeding expectations for the fiscal year.
ADP's retirement services business achieved a major milestone of $1 billion in annual revenue for the first time.
The company experienced broad-based new business bookings growth, particularly in small business, HR outsourcing, enterprise, and international markets.
ADP's strategic investments in AI and technology are driving operational efficiencies and enhancing client satisfaction.

Negative

PEO margins contracted by 100 basis points in the fourth quarter due to faster growth in zero-margin pass-through revenues and higher expenses.
The fiscal 2027 outlook anticipates a slight decline in Employer Services retention by 10 to 30 basis points.
ADP expects a slight headwind from foreign exchange in fiscal 2027, contrasting with the tailwind experienced in fiscal 2026.
PEO segment margins are expected to show further contraction in fiscal 2027.
The company anticipates a moderation in wage growth, impacting average client funds balances growth in fiscal 2027.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ADP.OQ - Automatic Data Processing Inc
Q4 2026 Automatic Data Processing Inc Earnings Call
Jul 29, 2026 / 12:30PM GMT

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Conference Call Participants
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* Matthew Keating
* Maria Black
* Peter Hadley
* Mark Marcon
* Jason Kupferberg
* Samad Samana
* Bryan Keane
* Tien-Tsin Huang
* Dan Dolev
* Daniel Jester

=====================
Presentation
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Operator [1]
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Good morning. My name is Michelle, and I'll be your conference operator. At this time, I would like to welcome everyone to ADP's Fourth Quarter Fiscal 2026 Earnings Call. I would like to inform you that this conference is being recorded. [Operator Instructions] I'll now turn the conference over to Matt Keating, Vice President, Investor Relations. Please go ahead.

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