ADP ADP is scheduled to release first-quarter fiscal 2027 results on Oct. 28, before market open.
ADP has a decent earnings surprise history, surpassing the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 2.1%.
Automatic Data Processing, Inc. Price and EPS Surprise
Automatic Data Processing, Inc. price-eps-surprise | Automatic Data Processing, Inc. Quote
ADP’s Q1 Expectations
The Zacks Consensus Estimate for the top line is set at $5.5 billion, indicating 5.6% year-over-year growth. The consensus estimate for the Employer Services (ES) segment revenues is pinned at $3.7 billion, indicating 5.3% year-over-year growth.
The ES segment is expected to have benefited from solid business bookings, persistent demand for HR outsourcing solutions, and expansion across domestic and international markets.
The segment is expected to have experienced significant growth from the growing adoption of ADP Lyric HCM, Global Payroll and WorkForce Suite. Additional support is expected from investments in AI-driven sales tools, prudent pricing contribution and healthy client retention.
The Zacks Consensus Estimate for Professional Employer Organization services revenues is pegged at $1.8 billion, indicating a 5.8% year-over-year gain. Continued business bookings growth and an expanding worksite employee base are anticipated to have supported this segment’s growth. Growth across the PEO segment is likely to have been further supported by enhanced customer satisfaction and stable retention.
The consensus mark for Interest on Funds held for clients is at $332.3 million, suggesting 15.9% year-over-year growth. Higher average investment yields and expanding client fund balances are expected to have boosted this segment’s revenue growth.
The consensus estimate for earnings per share is set at $2.78, implying year-over-year growth of 11.7%. The bottom line is anticipated to have improved on the back of AI-driven operational efficiencies and service delivery cost strip-down.
What Our Model Says About ADP
Our proven model does not conclusively predict an earnings beat for ADPthis time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
ADP has an Earnings ESP of 0.00% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks from the broader Computer and Technology sector, which, according to our model, have the right combination of elements to beat on earnings this season.
Affirm AFRM: The Zacks Consensus Estimate for the company’s first-quarter fiscal 2027 revenues is pinned at $1.2 billion, indicating a 30% year-over-year jump. For earnings, the consensus mark is set at 35 cents per share, suggesting 52.2% year-over-year growth. The company beat the Zacks Consensus Estimate in the past four quarters, the average surprise being 379.4%.
AFRM has an Earnings ESP of +11.03% and a Zacks Rank #2 at present.
The company is scheduled to declare first-quarter fiscal 2027 results on Nov. 5.
Amphenol APH: The Zacks Consensus Estimate for the company’s third-quarter 2026 revenues is kept at $9.4 billion, implying 52.4% year-over-year growth. For earnings, the consensus mark is pinned at 73 cents per share, suggesting a 55.3% jump from that reported in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, with an average surprise of 11.8%.
APH currently has an Earnings ESP of +1.72% and a Zacks Rank #2. The company is scheduled to declare third-quarter 2026 results on Oct. 28.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report
Amphenol Corporation (APH): Free Stock Analysis Report
Affirm Holdings, Inc. (AFRM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).