ADP jumps after Q3 beat and higher FY2026 outlook lifts sentiment
Automatic Data Processing shares are jumping after the company reported fiscal Q3 2026 results that beat expectations and lifted its full-year outlook. ADP posted revenue of about $5.94 billion and adjusted EPS of $3.37 for the quarter ended March 31, 2026.
1. What’s moving the stock
Automatic Data Processing (ADP) is rallying after releasing third-quarter fiscal 2026 results before the market open on Wednesday, April 29, 2026, alongside an updated full-year fiscal 2026 outlook. The report showed a modest beat versus consensus on both revenue and adjusted earnings, helping push shares higher in early trading.
2. Key numbers from the quarter
For the fiscal third quarter ended March 31, 2026, ADP reported revenue of roughly $5.94 billion, ahead of estimates near $5.91 billion. Adjusted diluted EPS came in at $3.37 versus estimates around $3.33, with net earnings of about $1.36 billion and an adjusted EBIT margin of 30.2% (up roughly 80 basis points year over year).
3. Outlook and what investors are keying on
ADP revised its fiscal 2026 outlook higher, which appears to be the main catalyst behind today’s outsized move. Investors are also focusing on continued growth in client funds balances (about $48.3 billion on average in the quarter) and higher interest on funds (about $404 million), which can support earnings when rates remain elevated.