ADP Tops Q4 Forecast with $2.62 EPS, Reports 6,500 Weekly Job Gains
ADP posted Q4 EPS of $2.62 and revenue of $5.36B, topping consensus, while its National Employment Report shows a four-week average of 6,500 private jobs added weekly. Ahead of the February BLS release, the White House warned figures may underperform, potentially heightening market focus on ADP's payroll data.
1. Q4 Earnings Beat
On January 28, 2026, ADP reported Q4 earnings per share of $2.62, surpassing consensus by five cents, and generated $5.36 billion in revenue, beating forecasts by approximately $20 million. These results underscore the company's ability to leverage its HR and payroll solutions platform across over 1.1 million clients in more than 140 countries.
2. National Employment Report Highlights
The ADP National Employment Report indicated that U.S. private sector payrolls added 6,500 jobs weekly on a four-week moving average through January 24, marking an uptick from prior readings. This real-time gauge offers investors a timely view of labor market momentum ahead of official government data.
3. Market Context and Outlook
In advance of the February BLS jobs release, the White House cautioned that labor figures may underperform expectations, potentially boosting the significance of ADP's report for investors. Stifel Nicolaus raised its price target on ADP to $270, reflecting confidence in the company's growth prospects and the resilience of employment trends.