Shares of Automatic Data Processing Inc. (ADP) surged 5.05% in intraday trading on Wednesday, driven by the company's impressive fiscal fourth-quarter results and optimistic fiscal 2027 outlook. The payroll and human resources software giant reported adjusted earnings of $2.64 per share, handily beating the consensus analyst estimate of $2.59. Revenue for the quarter climbed 7% to $5.47 billion, also topping the expected $5.44 billion, fueled by robust demand from enterprise clients for its payroll and HR solutions.

Adding to the bullish sentiment, ADP issued guidance for fiscal 2027 that projects revenue growth of 5% to 6%, implying a range of approximately $23.0 billion to $23.2 billion—slightly above the consensus estimate of $23.12 billion. The company also expects adjusted diluted earnings per share to grow 9% to 11%, landing between $12.12 and $12.34, compared to the analyst forecast of $12.20. ADP's finance chief highlighted the role of AI tools embedded across product, service, and sales teams, positioning the company strongly for sustained growth.

The earnings beat was broad-based, with the PEO Services segment recording a 7% revenue increase and Employer Services new business bookings rising 6% for the full year. The strong performance and forward-looking guidance reinforced investor confidence, driving the stock sharply higher during the session.