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The Zacks Consensus Estimate for the top line is pinned at $5.9 billion, indicating 5.4% year-over-year growth.
The consensus estimate for third-quarter fiscal 2026 revenues of $4 billion from Employer Services implies a 5.7% rise from the year-ago quarter’s actual. Continued strength in international, U.S. enterprise and compliance businesses is anticipated to have supported this segment’s growth.
For Professional Employer Organization (“PEO”) services, the Zacks Consensus Estimate for revenues is held at $1.9 billion, suggesting 5.8% year-over-year growth. Persistent growth in zero-margin pass-through and robust business booking growth are the likely factors to have driven this segment’s performance.
The consensus mark for Interest on Funds held for clients is kept at $390 million, indicating 9.8% growth from the year-ago quarter’s reported figure. Higher average client fund balance growth is expected to have caused the uptick in this segment’s revenues.
The consensus estimate for earnings per share is kept at $3.28, suggesting year-over-year growth of 7.2%. Prudent cost-management initiatives are anticipated to have aided the bottom line.
The Zacks Consensus Estimate for Average Paid PEO Worksite Employees for the quarter is 762, a 1.9% uptick from the year-ago quarter’s actual.
What Our Model Says About ADP
Our proven model does not conclusively predict an earnings beat for ADP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
ADP has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.
Stocks to Consider
Here are a few stocks from the broader Computer and Technology sector, which, according to our model, have the right combination of elements to beat on earnings this season.
Sandisk Corporation (SNDK - Free Report) : The Zacks Consensus Estimate for the company’s third-quarter fiscal 2026 revenues is pinned at $4.6 million, indicating a 168.6% year-over-year upsurge. For earnings, the consensus mark is set at $13.92 per share, whereas it incurred a loss of 30 cents in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, the average surprise being 371.3%.
The company is scheduled to declare third-quarter fiscal 2026 results on April 30.
Extreme Networks (EXTR - Free Report) : The Zacks Consensus Estimate for the company’s third-quarter fiscal 2026 revenues is kept at $311.7 million, indicating a year-over-year increase of 9.6%. For earnings, the consensus mark is pinned at 24 cents per share, suggesting a 14.3% jump from that reported in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, with an average surprise of 8.1%.
EXTR currently has an Earnings ESP of +1.41% and a Zacks Rank #2. The company is scheduled to declare third-quarter fiscal 2026 results on April 29.
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ADP to Report Q3 Earnings: Here's What Investors Should Know
Key Takeaways
ADP (ADP - Free Report) is scheduled to release third-quarter fiscal 2026 results on April 29, before market open.
ADP has a decent earnings surprise history, surpassing the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 2.2%.
Automatic Data Processing, Inc. Price and EPS Surprise
Automatic Data Processing, Inc. price-eps-surprise | Automatic Data Processing, Inc. Quote
ADP’s Q3 Expectations
The Zacks Consensus Estimate for the top line is pinned at $5.9 billion, indicating 5.4% year-over-year growth.
The consensus estimate for third-quarter fiscal 2026 revenues of $4 billion from Employer Services implies a 5.7% rise from the year-ago quarter’s actual. Continued strength in international, U.S. enterprise and compliance businesses is anticipated to have supported this segment’s growth.
For Professional Employer Organization (“PEO”) services, the Zacks Consensus Estimate for revenues is held at $1.9 billion, suggesting 5.8% year-over-year growth. Persistent growth in zero-margin pass-through and robust business booking growth are the likely factors to have driven this segment’s performance.
The consensus mark for Interest on Funds held for clients is kept at $390 million, indicating 9.8% growth from the year-ago quarter’s reported figure. Higher average client fund balance growth is expected to have caused the uptick in this segment’s revenues.
The consensus estimate for earnings per share is kept at $3.28, suggesting year-over-year growth of 7.2%. Prudent cost-management initiatives are anticipated to have aided the bottom line.
The Zacks Consensus Estimate for Average Paid PEO Worksite Employees for the quarter is 762, a 1.9% uptick from the year-ago quarter’s actual.
What Our Model Says About ADP
Our proven model does not conclusively predict an earnings beat for ADP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
ADP has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.
Stocks to Consider
Here are a few stocks from the broader Computer and Technology sector, which, according to our model, have the right combination of elements to beat on earnings this season.
Sandisk Corporation (SNDK - Free Report) : The Zacks Consensus Estimate for the company’s third-quarter fiscal 2026 revenues is pinned at $4.6 million, indicating a 168.6% year-over-year upsurge. For earnings, the consensus mark is set at $13.92 per share, whereas it incurred a loss of 30 cents in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, the average surprise being 371.3%.
SNDK has an Earnings ESP of +2.59% and flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to declare third-quarter fiscal 2026 results on April 30.
Extreme Networks (EXTR - Free Report) : The Zacks Consensus Estimate for the company’s third-quarter fiscal 2026 revenues is kept at $311.7 million, indicating a year-over-year increase of 9.6%. For earnings, the consensus mark is pinned at 24 cents per share, suggesting a 14.3% jump from that reported in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, with an average surprise of 8.1%.
EXTR currently has an Earnings ESP of +1.41% and a Zacks Rank #2. The company is scheduled to declare third-quarter fiscal 2026 results on April 29.