ADP (ADP) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

For the quarter ended June 2026, Automatic Data Processing (ADP) reported revenue of $5.47 billion, up 6.8% over the same period last year. EPS came in at $2.64, compared to $2.26 in the year-ago quarter.

The reported revenue represents a surprise of +0.87% over the Zacks Consensus Estimate of $5.43 billion. With the consensus EPS estimate being $2.59, the EPS surprise was +1.93%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Segment revenues- Employer Services: $3.7 billion versus the three-analyst average estimate of $3.67 billion. The reported number represents a year-over-year change of +6.7%. Revenues- Interest on funds held for clients: $355.4 million versus $340.62 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +15.5% change. Revenues- PEO revenues: $1.78 billion versus $1.78 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.9% change. Segment revenues- PEO Services: $1.78 billion versus $1.76 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.9% change. Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $3.34 billion compared to the $3.33 billion average estimate based on two analysts. The reported number represents a change of +5.8% year over year.

View all Key Company Metrics for ADP here>>>

Shares of ADP have returned +18% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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This article originally published on Zacks Investment Research (zacks.com).

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