No. of Recommendations: 3
Falling knife....?
ADP Reports Third Quarter Fiscal 2026 Results
•Revenues increased 7% compared to last year's third quarter to $5.9 billion; 6% organic constant currency
•Net earnings increased 9% to $1.4 billion, and adjusted net earnings increased 9% to $1.4 billion
•Adjusted EBIT increased 10% to $1.8 billion, and adjusted EBIT margin increased 80 basis points to 30.2%
•Diluted earnings per share ("EPS") increased 10% to $3.38; adjusted diluted EPS increased 10% to $3.37
•Raising full year guidance for revenue, adjusted EBIT Margin, and adjusted diluted EPS growth
ROSELAND, N.J. – April 29, 2026 – ADP (Nasdaq: ADP), a global leader in HR and payroll solutions, today announced its third quarter fiscal 2026 financial results and updated its fiscal 2026 outlook.
Third Quarter Fiscal 2026 Consolidated Results
Compared to last year’s third quarter, revenues increased 7% to $5.9 billion and 6% on an organic constant currency basis. Net earnings increased 9% to $1.4 billion, and adjusted net earnings increased 9% to $1.4 billion. Adjusted EBIT increased 10% to $1.8 billion, and adjusted EBIT margin increased 80 basis points to 30.2%. ADP’s effective tax rate for the quarter was 23.7% on both a reported basis and an adjusted basis. Diluted EPS increased 10% to $3.38, and adjusted diluted EPS increased 10% to $3.37.
"We delivered a strong quarter, and it reflects what ADP does best – executing with precision for our clients while continuing to invest in defining the future of HCM,” said Maria Black, President and Chief Executive Officer, ADP. “Organizations around the world trust us as their partner for their most critical workforce functions because we have the data and expertise to address the rapidly changing world of work. AI is adding new layers of complexity to our clients' work, and we are well into building the capabilities to meet that moment. We are primed to capture and harness the significant opportunity ahead for the HCM industry."
“Our third quarter results came in ahead of our expectations across revenue growth, adjusted EBIT margin, and adjusted EPS," said Peter Hadley, Chief Financial Officer, ADP. “ADP has the financial strength and scale to invest with confidence in AI capabilities across our products, service delivery, and sales organization to fuel our future growth, while continuing to deliver on our financial commitments. Our updated fiscal 2026 guidance reflects stronger revenue and earnings growth."
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