By Connor Hart
Automatic Data Processing raised its outlook for the year after logging higher profit and revenue during the latest quarter, as it invests in artificial intelligence to expand its payroll and workplace services.
The payroll and workplace-administration company said Wednesday it now expects full-year revenue to grow 6% to 7%, compared with a prior outlook for roughly 6% year-over-year growth.
Adjusted earnings are now projected to be up 10% to 11% from last year, compared with a prior forecast for a 9% to 10% increase.
Shares climbed 4.4%, to $207.98, in premarket trading.
The outlooks came as Chief Financial Officer Peter Hadley said ADP topped expectations for revenue growth and adjusted earnings during the recent quarter.
"ADP has the financial strength and scale to invest with confidence in AI capabilities across our products, service delivery and sales organization to fuel our future growth, while continuing to deliver on our financial commitments," he continued.
In its fiscal third quarter ended March 31, ADP posted a profit of $1.36 billion, or $3.38 a share, compared with $1.25 billion, or $3.06 a share, a year earlier.
Stripping out one-time items, earnings were $3.37 a share. Analysts polled by FactSet had expected adjusted earnings of $3.29 a share.
Total revenues were up 7% to $5.94 billion, ahead of Wall Street models for $5.82 billion.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
04-29-26 0739ET
