ADP lifts annual outlook on strong payroll service demand
ADP raised its 2026 outlook after beating third-quarter estimates. Strong demand for payroll and human resource software helped offset a slower labor market.
AUTOMATIC DATA PROCESSING raised its 2026 revenue forecast to 6%-7% growth after Q3 revenue reached $5.94B, beating estimates. Enterprise demand for HR software remains resilient in the United States despite a cooling labor market. ADP's scale allows for aggressive AI investment, positioning the firm to capture more market share during industry consolidation.
### Enterprise Demand Drives Margin Expansion ADP reported adjusted profit of $3.37 per share for the quarter ending March 31, exceeding LSEG estimates of $3.29. The payroll provider now expects annual adjusted profit to grow between 10% and 11%, up from a previous range of 9% to 10%.
