ADP Cites AI as Growth Catalyst in Fiscal Outlook

Automatic Data Processing (ADP) presented an elevated outlook for fiscal 2027 at Citi’s 2026 Global Technology, Media and Telecommunications Conference, emphasizing artificial intelligence as a key driver of growth. The company, which processes $3.5 trillion annually in U.S. payrolls, reported a 6% organic growth in its core Employer Services segment in the fourth quarter of fiscal 2026, supported by pricing contributions of over 130 basis points and revenue expansion in Global Business, which grew 10% year-over-year in fiscal 2026. ADP’s Professional Employer Organization (PEO) segment saw total revenue growth of 7% in fiscal 2026, with new bookings reaching $2.2 billion, and the company guided for 4% to 7% growth in fiscal 2027. The company’s Lyric HCM platform, a human capital management solution, saw a 94% increase in live clients year-over-year, with a 50% rise in its pipeline, including 70% of opportunities tied to new enterprise clients.