Automatic Data Processing, Inc. (ADP) reported a strong financial performance for the third quarter and nine months ended March 31, 2026, with total revenues reaching $5.94 billion for the quarter, a 7% increase from $5.55 billion in the same period last year. For the nine months, revenues totaled $16.47 billion, also reflecting a 7% year-over-year growth. The growth was attributed to new business bookings, strong client retention, and an increase in pricing, alongside a rise in interest earned on funds held for clients, which amounted to $403.9 million for the quarter, up from $355.2 million a year earlier.
Net earnings for the third quarter were $1.36 billion, or $3.38 per diluted share, compared to $1.25 billion, or $3.06 per diluted share, in the prior year, marking a 9% increase in net earnings. For the nine-month period, net earnings rose to $3.43 billion, or $8.49 per diluted share, from $3.17 billion, or $7.75 per diluted share, in the previous year. The increase in earnings was supported by a 50 basis point expansion in the earnings before income taxes margin, which reached 30% for the quarter.
ADP's operational metrics showed positive trends, with the number of pays per control, representing employees on ADP clients' payrolls, increasing by 1% year-over-year. The Professional Employer Organization (PEO) segment also saw a 2% rise in average worksite employees. The company continued to invest in its Human Capital Management (HCM) solutions, launching new AI-driven products and expanding its service capabilities, which contributed to its competitive positioning in the market.
In terms of strategic developments, ADP completed the acquisition of WorkForce Software in October 2024, enhancing its Employer Services segment. The company reported that the integration of this acquisition is progressing well, contributing to its overall growth strategy. Additionally, ADP returned $3.4 billion to shareholders through dividends and share repurchases during the nine months, reflecting its commitment to shareholder value.
Looking ahead, ADP maintains a positive outlook, expecting continued revenue growth driven by its strategic initiatives and market demand for HCM solutions. The company emphasized its strong cash flow generation and liquidity position, which it believes will support ongoing investments in technology and service enhancements while maintaining shareholder returns.
About AUTOMATIC DATA PROCESSING INC
Automatic Data Processing, Inc. (ADP) is a global leader in human capital management (HCM) and payroll solutions, serving over 1.1 million clients and 42 million workers across 140+ countries. Its core offerings include payroll processing, benefits administration, talent and workforce management, HR outsourcing, and compliance services. ADP leverages cloud-based platforms, extensive data insights, and AI-driven technology to simplify HR processes, enhance workforce management, and support businesses of all sizes worldwide.
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