Automatic Data Processing Inc. (NASDAQ:ADP) reported third-quarter fiscal 2026 results on Wednesday.
The company reported quarterly revenues of $5.94 billion, beating the analyst consensus estimate of $5.85 billion.
Revenues increased 7% year-over-year.
The human resources management software company reported quarterly adjusted EPS of $3.37, beating the analyst consensus estimate of $3.29.
Segment Performance
ADP primarily earns revenue by charging service fees in its Employer Services and PEO segments, with pricing based on the scope of services each client uses.
Employer Services revenues increased 7% to $4.04 billion. PEO Services revenues rose 7% to $1.91 billion.
Interest on funds held for clients increased by 14% to $404 million. Average client funds balances increased 9% to $48.3 billion, and the average interest yield on client funds increased 10 basis points to 3.3%.
Profits And Margins
Adjusted EBIT increased 10% to $1.79 …