Automatic Data Processing, Inc. (ADP) Earnings Call Transcripts

Automatic Data Processing, Inc.'s Latest Earnings Call - September 9, 2026

In the fiscal Q1 2027 earnings call for Automatic Data Processing, Inc. (ADP), management reported a stable macroeconomic environment with flat to 1% growth in pays per control, consistent with prior periods. Revenue for FY '26 was noted at $16.5 billion, reflecting a 10% increase, driven primarily by strong global payroll performance. Management maintained guidance for FY '27, expecting continued revenue growth in the range of 4% to 7%, while also indicating a positive outlook on AI-driven efficiencies and margin expansion.

Reported metrics

Guidance from management

Management maintained revenue growth guidance for FY '27 in the range of 4% to 7%, with expectations for continued strength in global payroll and AI-driven efficiencies contributing to margin expansion.

What management said

Yes, it's around 25 to 30 basis points of our Employer Services segment revenue is impacted, if you will, that's the impact on Employer Services revenue from around 1% pace per control growth. So in our growth algorithm, bookings and retention are much more important drivers, if you like, than pays per control.

It does get headlines, yes. It doesn't drive a huge amount of revenue, but it is high-margin revenue, movement in employee volumes. It doesn't really tend to meaningfully impact the cost to serve. So whether they're going up or down, tends to be maybe more of a driver on the margin candidly than on the revenues.

What analysts pressed on

Analysts expressed concerns regarding the sustainability of growth rates in the PEO segment, particularly in light of medical inflation and hiring levels impacting pace per control. There were also questions about potential competitive pressures on pricing.

Main topics on the call

• Stable Macro Environment — Management highlighted a stable employment situation with low layoff levels and consistent hiring, stating, "the demand environment for our services continues to be healthy." This stability is expected to support revenue...
• AI Investment and Efficiency — ADP is investing significantly in AI, with the CFO stating, "we see it much more as an opportunity than a threat." This investment is expected to enhance client interactions and operational efficiencies, contributing pos...
• Global Payroll Performance — The global business grew by 10% in FY '26, attributed to strong performance in global payroll offerings. Management noted, "there's tremendous opportunity there with respect to broadening our offer," indicating potential...
• Lyric HCM Growth — Lyric's live clients increased by 94%, with a strong pipeline indicating future growth. Management stated, "the demand in the pipeline is strong," suggesting that Lyric could be a key driver for revenue growth moving for...

Read the full Automatic Data Processing, Inc. transcript (September 9, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 99 Automatic Data Processing, Inc. earnings call transcripts on record, spanning January 29, 2020 to September 9, 2026. Based on this history, Automatic Data Processing, Inc. reports quarterly. The most recent call on file is dated September 9, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

ADP

Exchange

NasdaqGS

Country

US

Sector

Industrials

Industry

Professional Services

Calls on record

99

First call

January 29, 2020

Most recent

September 9, 2026

Reporting cadence

quarterly