ADP closed fiscal 2026 with broad-based growth across revenue, earnings, client retention, and AI-enabled product adoption. Full-year revenue increased 7% to $21.95 billion, while net earnings rose 8% to $4.41 billion. Adjusted EBIT reached $5.87 billion, with adjusted EBIT margin expanding 80 basis points to 26.8%, and adjusted diluted EPS increasing 11% to $11.12. Employer Services generated $2.2 billion in new business bookings and maintained client revenue retention at 92.1%. ADP also reported more than 12 million conversations with ADP Assist Agents during the year, while the number of clients live on ADP Lyric HCM increased 94%. Management said AI is being embedded across products, service operations, and sales workflows to improve quality and productivity. For fiscal 2027, ADP expects revenue growth of 5% to 6%, adjusted EBIT margin expansion of 70 to 90 basis points, and adjusted diluted EPS growth of 9% to 11%, signaling continued operating leverage despite moderate employment growth.

ROSELAND, N.J. — July 29, 2026 — ADP (Nasdaq: ADP) reported fourth-quarter and full-year fiscal 2026 results, delivering solid revenue growth, higher profitability, strong client retention, and broader adoption of AI-enabled products across its human capital management ecosystem.

For fiscal 2026, ADP generated total revenue of $21.95 billion, up 7% year over year and 6% on an organic constant-currency basis. Net earnings increased 8% to $4.41 billion, while adjusted net earnings rose 10% to $4.49 billion.

Adjusted EBIT increased 10% to $5.87 billion, with adjusted EBIT margin expanding 80 basis points to 26.8%. Diluted earnings per share increased 10% to $10.94, while adjusted diluted EPS rose 11% to $11.12.

In the fourth quarter, ADP reported revenue of $5.47 billion, up 7% year over year. Net earnings increased 7% to $978.6 million, adjusted EBIT rose 13% to $1.37 billion, and adjusted diluted EPS increased 17% to $2.64.

Employer Services Delivers Growth and Strong Retention

ADP’s Employer Services segment, which includes global HCM and human resources outsourcing solutions, generated $14.83 billion in fiscal 2026 revenue, up 7% year over year.

Employer Services new business bookings increased 6% to $2.2 billion, while client revenue retention remained strong at 92.1%. ADP also reported that company-wide client satisfaction scores reached new record highs.

For the fourth quarter, Employer Services revenue increased 7% to $3.70 billion, while segment margin expanded 90 basis points to 34.4%. ADP attributed the margin improvement primarily to operational productivity gains and higher client funds interest revenue.

U.S. pays per control, which reflects same-store growth in the number of employees on ADP clients’ processed payrolls, increased 1% for both the fourth quarter and the full fiscal year.

AI Moves Into Scaled Deployment

AI was a central theme in ADP’s fiscal 2026 update.

Clients and their employees had more than 12 million conversations with ADP Assist Agents during the year. At the same time, the number of clients live on ADP Lyric HCM increased 94%.

ADP also enhanced The Zone, its internal service and sales platform, with additional AI capabilities. Management said AI tools are now being embedded across product, service, and sales teams to improve quality, productivity, and customer experience.

“AI is reshaping how work gets done, what roles look like, and how teams are organized,” said Maria Black, President and Chief Executive Officer of ADP. She added that these changes are making HCM more critical and increasing the need for trusted enterprise partners.

Chief Financial Officer Peter Hadley said ADP entered fiscal 2027 in a strong position as AI tools become more deeply integrated across the company’s operating model.

The results suggest that ADP’s AI strategy is moving beyond standalone assistant functionality. The company is increasingly positioning AI as an embedded layer across payroll, HCM, customer service, sales, and global workforce administration.

Global Payroll and International Demand Strengthen

ADP also reported accelerating international bookings growth, supported by rising demand for its unified global payroll, global HR, and global time offerings.

As multinational employers seek more consistent workforce data, payroll governance, and compliance processes across countries, global payroll is becoming a more strategic component of enterprise HCM infrastructure.

ADP’s scale gives the company a significant position in this market. The company serves more than 1.1 million clients across more than 140 countries, covering payroll, HR, talent, time management, benefits, and compliance.

PEO Services Revenue Grows as Margin Declines

ADP’s PEO Services segment generated $7.13 billion in fiscal 2026 revenue, up 7% year over year. Revenue excluding zero-margin benefits pass-throughs increased 5%.

Average paid worksite employees increased 2% to approximately 762,000 for the full year. In the fourth quarter, the average number of paid worksite employees reached approximately 775,000.

However, PEO Services margin declined 110 basis points for the full year and 100 basis points in the fourth quarter. ADP attributed the decline primarily to faster growth in zero-margin benefits pass-through revenue, as well as higher workers’ compensation and selling expenses.

The result highlights the importance of looking beyond headline PEO revenue growth. Worksite employee trends, revenue excluding pass-through items, insurance-related costs, and segment margin remain critical indicators of underlying PEO performance.

Client Funds Continue to Support Earnings Growth

ADP’s client funds business also contributed meaningfully to fiscal 2026 results.

Average client funds balances increased 7% to $40.4 billion for the full year, while the average yield on client funds rose from 3.2% to 3.4%.

Interest on funds held for clients increased 14% to $1.35 billion, while the net impact from ADP’s client funds investment strategy increased 22% to $1.31 billion.

For fiscal 2027, ADP expects interest on funds held for clients to reach between $1.54 billion and $1.56 billion, supported by anticipated client funds balance growth of 3% to 4% and an average portfolio yield of approximately 3.7%.

Fiscal 2027 Outlook

ADP expects continued growth and margin expansion in fiscal 2027.

The company’s consolidated outlook includes:

• Revenue growth of 5% to 6%


• Adjusted EBIT margin expansion of 70 to 90 basis points


• Adjusted effective tax rate of approximately 23%


• Diluted EPS growth of 11% to 13%


• Adjusted diluted EPS growth of 9% to 11%

For Employer Services, ADP expects revenue growth of 5% to 6%, new business bookings growth of 4% to 7%, and a client revenue retention decline of 10 to 30 basis points.

For PEO Services, ADP expects revenue growth of 5% to 7%, revenue growth excluding zero-margin benefits pass-throughs of 3% to 5%, and average worksite employee growth of approximately 2%.

DHRmap Perspective

ADP’s fiscal 2026 results show how a large HR technology company can use AI to strengthen both product value and operating leverage.

The company’s revenue growth remained steady, but adjusted EBIT and adjusted EPS grew faster than revenue. This indicates that AI, workflow automation, client funds income, and operational productivity are beginning to create measurable financial leverage.

The more important strategic signal is that ADP is not treating AI as an isolated product category. Instead, it is embedding AI across employee interactions, customer service, sales, HCM deployment, and global payroll operations.

For enterprise buyers, the competitive question is also changing. The issue is no longer simply which platform offers the most AI features. It is which provider can combine AI with reliable payroll execution, compliance expertise, data security, global infrastructure, and long-term client trust.

ADP’s fiscal 2026 performance suggests that scale, trust, proprietary workforce data, and embedded workflow capabilities may become increasingly important advantages as AI adoption expands across the HR technology market.

Source: ADP Q4 Fiscal 2026 Earnings Release and Earnings Presentation, published July 29, 2026.

About DHRmap

DHRmap tracks the global HR technology market, including HCM, payroll, talent technology, workforce platforms, AI applications, funding activity, and strategic developments across the industry.