Description
ADP Goes All-In On AI-Powered HCM — Can Lyric Sustain The Earnings Beat?
Automatic Data Processing, Inc. reported third-quarter fiscal 2026 results marked by 7% revenue growth, 80 basis points of adjusted EBIT margin expansion, and 10% adjusted earnings per share growth, all surpassing company expectations. These outcomes reflect progress across its strategic priorities, particularly in leveraging artificial intelligence (AI) within human capital management (HCM). The company highlighted record-high Employer Services retention and client satisfaction rates for the quarter, emphasizing broad-based strength across international markets, compliance solutions, small business insurance, and retirement services. A key driver cited was the integration of AI into core HCM functions, not merely as surface automation but embedded in payroll accuracy, regulatory compliance, and workforce management—areas inherently complex and high stakes. Examples included AI-powered ADP Assist agents providing operational efficiencies (e.g., 30 minutes saved per payroll) and advanced recruiting tools within ADP Lyric HCM reducing recruiting steps substantially.
