ADP tops fourth-quarter revenue estimates on payroll software demand

ADP forecast fiscal 2027 revenue growth of 5% to 6%, while analysts were expecting 5.8%.

"With AI tools now being embedded across our product, service and sales teams... we enter fiscal 2027 in a strong position to drive growth in our business," ADP finance chief Peter Hadley said.

Revenue from its PEO Services segment grew 7% in the reported quarter.

Payroll firm Automatic Data Processing reported fourth-quarter revenue above Wall Street estimates on Wednesday, helped by strong spending by enterprise clients on its payroll and human resources software.

• ADP provides cloud-based human capital management solutions, including payroll, benefits administration and HR management services.
• ADP said earlier this year investments in AI, service tools and product innovation are improving productivity, reducing costs and enhancing the client experience.
• The company reported fourth-quarter revenue of $5.5 billion. Analysts on average expected $5.44 billion, according to data compiled by LSEG.
• Adjusted diluted earnings per share of $2.64 exceeded an estimated $2.59.