Automatic Data Processing, Inc. Q4 2026 Earnings Recap

ADP’s shares were essentially unchanged following Q4 Fiscal 2026 results, reflecting balanced investor sentiment amid ongoing margin expansion but tempered by modest deceleration in growth momentum and cautious forward commentary.

Key Takeaways

• Reported 7% revenue growth for the quarter, supported by broad-based new business bookings across multiple segments.
• Adjusted EBIT margin expanded by 140 basis points, continuing a multi-year margin improvement trend.
• Adjusted EPS grew 17% year-over-year, bolstered by operating efficiencies and product adoption gains.
• Employer Services achieved $2.2 billion in new business bookings, a 6% increase, driven by strength in small business and international markets.
• Client retention remained strong at 92.1%, with client satisfaction reaching a new record high for the third consecutive year.