ADP (ADP) reported a robust finish to fiscal year 2026, with the company announcing 7% revenue growth, 140 basis points of adjusted EBIT margin expansion, and 17% adjusted EPS growth for the fourth quarter. These results, presented on Wednesday, July 29, 2026, exceeded initial expectations, fueled by the successful integration of artificial intelligence across its core human capital management (HCM) platforms.
Strategic Growth and AI Integration
Maria Black, President and CEO of ADP, highlighted that the company’s performance is anchored in its three strategic priorities: leading with best-in-class HCM technology, providing unmatched expertise and outsourcing, and leveraging global scale. Central to this strategy is the deployment of AI to reshape, rather than replace, the workforce.
“Every business we serve is wrestling with how to deploy AI without losing the accuracy and trust that payroll and HR require,” said Black. “ADP is the answer.”
The company’s AI-powered assistant, ADP Assist, has seen rapid adoption since its January launch. With HCM agents now available to nearly all of ADP’s 1.1 million clients, the platform facilitated 12 million conversations with 3.1 million unique active users in fiscal 2026. Furthermore, the Lyric HCM platform continues to gain traction in the enterprise market, with the number of live clients increasing by 94% year-over-year.
Operational Efficiency and The Zone
ADP is also utilizing AI to streamline its internal service operations through a proprietary platform known as The Zone. Designed to provide service associates with a 360-degree view of the client journey, the platform has significantly improved service quality. By the end of fiscal 2026, 48% of service associates were using The Zone, contributing to a 4% decrease in contacts per client and allowing staff to focus on higher-value advisory tasks.
Financial Highlights and Segment Performance
Peter Hadley, CFO of ADP, confirmed that both the Employer Services (ES) and PEO segments reached the high end of the company’s guidance ranges. Total fiscal 2026 revenue reached $21.9 billion.
- Employer Services: Revenue grew 7% on a reported basis. Retention remained strong at 92.1%, while new business bookings hit $2.2 billion, representing 6% growth.
- PEO Segment: Revenues grew 7% for the year, with average worksite employees increasing by 2% to 775,000.
- Retirement Services: This division achieved a milestone of $1 billion in annual revenue, serving over 210,000 clients.
Fiscal 2027 Outlook
Looking ahead, ADP provided a confident outlook for fiscal 2027, assuming a stable macroeconomic environment. The company expects consolidated revenue growth of 5% to 6% and adjusted EPS growth of 9% to 11%.
“We enter fiscal 2027 confident in our ability to continue winning new deals and create operating efficiencies,” Black added. The company plans to continue its aggressive capital allocation strategy, supported by a $6 billion share repurchase authorization, alongside continued investments in product innovation and AI-driven service models.
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