# ADP Q1 2027 Earnings Report Exceeds Expectations

> ADP's Q1 2027 earnings beat forecasts with 6% revenue growth and 13% EPS rise.
- Title: ADP Q1 2027 Earnings Report Exceeds Expectations | Shortify
- Summary: ADP's Q1 2027 earnings beat forecasts with 6% revenue growth and 13% EPS rise. ADP reported $5.5 billion Q1 revenue with 6% year-over-year growth, 26.8%…
- Keywords: adp, q1 2027, earnings, revenue, eps, ebit margin, ai transformation, client funds interest, lyric hcm, the zone, finance, money
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/28/adp-adp-q1-2027-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-28T15:38:55+00:00
- Read time: 1 min
- Topics: adp, q1 2027, earnings, revenue, eps, ebit margin, ai transformation, client funds interest, lyric hcm, the zone, finance, money
## Q1 2027 Results
ADP reported $5.5 billion revenue, 6% year-over-year growth, and $2.82 adjusted diluted EPS.
## Revenue Breakdown
Employer Services revenue grew 6% to $3.7 billion, PEO Services revenue rose 7% to $1.8 billion.
## Client Funds Growth
Average client funds balances increased 6% to $36.9 billion with 3.6% interest yield.
## AI Transformation
The Zone deployment reached 60% of service population, driving 7% reduction in client contacts.
## ADP Assist Adoption
ADP Assist added 100,000 clients since fiscal 2026, moving from early to broad use.
## Full Year Guidance
Full year revenue growth raised to 6%, adjusted EPS growth to 10-12%, and client funds interest to $1.59 billion.
## Lyric HCM Expansion
Lyric HCM expanded to UK, France, Germany, and Netherlands for multinational clients.
## PNC Partnership
ADP partnered with PNC Bank to embed payroll and HR capabilities into digital banking platforms.
## AI Interviewer Performance
AI interviewer reduced interview time by 75% with 4,400 interviews completed since September.
## FX Headwind
Full year employer services revenue growth includes 0.5 percentage point FX headwind.
## Client Retention
Client revenue retention expected to decline 10-30 basis points for fiscal 2027.
## Pays Per Control
U.S. pays per control grew 2% year-over-year, exceeding internal expectations.
## Interest on Funds
Interest on client funds grew 15% to $329 million with 3.6% yield.
## AI Impact
AI tools reduced service contacts by 7% year-over-year through improved operational efficiency.
## Full Year Outlook
Full year revenue growth expected at 6% with 10-12% adjusted EPS growth.
## AI Transformation Progress
ADP's AI platform deployment increased to 60% of service population with measurable productivity gains.
## Key takeaway

ADP reported $5.5 billion Q1 revenue with 6% year-over-year growth, 26.8% adjusted EBIT margin, and raised full-year guidance.