# ADP Stock Q3 2026: Revenue Up 6% and Margin Up 1.3 Points as Guidance Rises
> ADP stock Q3 2026: revenue rose 6.1% to $5.49bn and adjusted EPS 13% to $2.82 as the margin widened; fiscal 2027 revenue and EPS guidance was raised.

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## Facts
- Ticker: ADP
- QSILabs fair value: $208.93 USD
- Price: $298.78 (as of 2026-11-02)
- As of: Q3 2026 results (ADP fiscal Q1 2027, quarter ended 2026-09-30, reported 2026-10-28); balance sheet from Form 10-Q for the quarter ended 2026-09-30 (filed 2026-10-30); price as of 2026-11-02 close
- Fiscal period: Q3 2026 (July-September 2026; ADP fiscal Q1 2027)
- Published: 2026-11-02
- Updated: 2026-11-02
- Author: QSI Labs Research
- Canonical: https://www.quantitativesuperintelligencelabs.com/research/adp-stock-q3-2026-earnings-peo-client-funds-guidance/

## Short answer
ADP stock Q3 2026 is a story of steady growth with a wider margin. Automatic Data Processing (Nasdaq: ADP) reported revenue of $5,491m for the three months to 30 September 2026, the first quarter of its fiscal 2027, up 6.1%. Its adjusted EBIT margin rose 1.3 points to 26.8%, net earnings rose 11.1% to $1,125m and adjusted earnings per share 13% to $2.82. ADP raised its fiscal 2027 guidance to revenue growth of about 6% and adjusted earnings per share growth of 10% to 12%. The shares fell 2.6% on results day but closed at $298.78 on 2 November 2026, up 16.2% for the year. Our discounted cash flow model values the shares at $208.93, about 0.70 times the price; the gap comes from an 8.97% cost of capital and growth that slows from 6% to 2.5% over ten years, against a share price of about 24 times this year's expected earnings.

## Key takeaways
- Revenue grew 6.1%. Revenue was $5,491m, up from $5,175m, and 6% on an organic constant-currency basis. Employer Services revenue rose 5.6% to $3,685m and PEO Services revenue 7.1% to $1,808m.
- Profit grew about twice as fast as revenue. Earnings before income taxes rose 11.3% to $1,455m and adjusted EBIT 11.5% to $1,470m. The Employer Services segment margin rose to 36.5% from 35.2%.
- Client money earned more. Interest on funds held for clients rose 15% to $329m, as average client balances rose 6% to $36.9bn and the average yield rose 0.3 points to 3.6%.
- Guidance went up. ADP now expects fiscal 2027 revenue growth of about 6%, up from 5% to 6%, and adjusted earnings per share growth of 10% to 12%, up from 9% to 11%.
- Hiring at clients is slow. US pays per control, the number of employees on ADP's payrolls at the same clients, rose 2%, and average PEO worksite employees rose 2% to about 771,000.
- Our value: $208.93 a share, against a $298.78 close on 2 November 2026. Across costs of capital from 7.97% to 9.97% and terminal growth from 1.5% to 3.5% the model gives $175.97 to $267.29. Analysts' average target is $297.93.
- What to watch. Employment growth at ADP's clients, interest rates on client funds, new business bookings, client retention and competition from software rivals using AI.

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