ADP · 8-K · 20260729PR000025
Guidance / Outlook
AUTOMATIC DATA PROCESSING INC · 2026-07-29 · Importance 69 · Surprise 60 · No source text
ADP expects fiscal 2027 consolidated revenue growth of 5% to 6% and adjusted EBIT margin expansion of 70 to 90 basis points. Adjusted diluted EPS is projected to grow 9% to 11%, while the adjusted effective tax rate is expected to remain approximately 23%. Employer Services revenue is expected to grow 5% to 6%, with new business bookings growth of 4% to 7% and client revenue retention declining 10 to 30 basis points. PEO Services revenue is expected to grow 5% to 7%, excluding zero-margin benefits pass-throughs by 3% to 5%, and average worksite employees by approximately 2%.
Key facts
- Employer Services revenue growth outlook for fiscal 2027 is 5% to 6% source
- PEO Services revenue growth outlook for fiscal 2027 is 5% to 7% source
- PEO Services revenue excluding zero-margin benefits pass-throughs growth outlook for fiscal 2027 is 3% to 5% source
- Fiscal 2027 consolidated outlook includes revenue growth of 5% to 6% source
- Fiscal 2027 consolidated outlook includes adjusted EBIT margin expansion of 70 to 90 basis points source
- Fiscal 2027 consolidated outlook includes adjusted diluted EPS growth of 9% to 11% source
- Consolidated Fiscal 2027 Outlook includes diluted EPS growth of 11% to 13% source
- Employer Services new business bookings growth outlook for fiscal 2027 is 4% to 7% source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | committed | +4.7% | Fiscal 2027 consolidated outlook includes revenue growth of 5% to 6% |
| revenue | positive | committed | +3.2% | Employer Services revenue growth outlook for fiscal 2027 is 5% to 6% |
| net_income | positive | committed | +2.0% | Consolidated Fiscal 2027 Outlook includes diluted EPS growth of 11% to 13% |
| net_income | positive | committed | +1.8% | Fiscal 2027 consolidated outlook includes adjusted diluted EPS growth of 9% to 11% |
| revenue | positive | committed | +1.6% | PEO Services revenue growth outlook for fiscal 2027 is 5% to 7% |
| margin | positive | committed | +0.7% | Fiscal 2027 consolidated outlook includes adjusted EBIT margin expansion of 70 to 90 basis points |
| revenue | negative | committed | -0.1% | Employer Services client revenue retention is expected to decrease 10 to 30 basis points in fiscal 2027 |
| revenue | positive | committed | — | PEO Services revenue excluding zero-margin benefits pass-throughs growth outlook for fiscal 2027 is 3% to 5% |
| revenue | positive | committed | — | Employer Services new business bookings growth outlook for fiscal 2027 is 4% to 7% |
| revenue | positive | committed | — | Increase in U.S. pays per control outlook for fiscal 2027 is 0% to 1% |
| revenue | positive | committed | — | PEO Services average worksite employee count growth outlook for fiscal 2027 is about 2% |