ADP Lifts Fiscal 2026 Outlook Following Strong Third Quarter Performance

Automatic Data Processing, Inc. (ADP) has posted third-quarter financial results that exceeded previous year benchmarks, driven by growth in its cloud-based human capital management solutions. The results reflect a broader trend of resilience in corporate payroll and HCM services. By raising its fiscal 2026 outlook, ADP signaled confidence in sustained demand for its suite of administrative and payroll tools. The company's ability to scale its adjusted EBIT to $1.79 billion, up from $1.63 billion in the prior year, underscores improving operational efficiency. Financial highlights for the quarter include net income rising to $1.36 billion from $1.25 billion a year ago, with earnings per share (EPS) climbing to $3.38 from $3.06. Total revenue for the period reached $5.94 billion, compared to $5.55 billion in the same quarter last year. Looking forward, the company increased its FY26 growth forecast to between 6% and 7%, up from the previous 6% estimate. Furthermore, EPS growth expectations were revised upward to a range of 10% to 11%, compared to the previous 9% to 10% projection. Following the announcement, ADP shares rose 4.06% in pre-market trading to $207.25.