Automatic Data Processing reported a sharp slowdown in pays-per-control growth to about 1% for fiscal 2026 and guided to 0-1% for fiscal 2027, signaling a cooler U.S. labor market alongside expectations for slightly weaker client retention. At the same time, ADP's Employer Services revenue grew 7% in the latest fiscal quarter, with new business bookings up 6% and client float income poised to benefit from rising wages. Management emphasized that AI is reshaping how work is done rather than eliminating jobs. ADP's narrative projects $25.9 billion revenue and $5.6 billion earnings by 2029, requiring 5.7% yearly revenue growth and an earnings increase of about $1.2 billion from $4.4 billion today, and forecasts a $287.60 fair value, a 12% upside to its current price. Some analysts were more optimistic before this slowdown, assuming ADP could lift revenue to about US$26.4 billion and earnings to roughly US$5.8 billion.
Automatic Data Processing IncADP reported a sharp slowdown in pays-per-control growth to about 1% for fiscal 2026 and guided to 0-1% for fiscal 2027, signaling weaker client retention and softer labor-market trends.
Aeroports de Paris SA