ADP Puts Payroll Inside PNC's Digital Banking Platform And Says More Embedded Deals Are Coming
CEO Maria Black unveiled PNC Payroll by ADP on the call and said the embedded strategy has "more pipeline alongside with it."
ADP, the payroll and human resources software and outsourcing company, is bringing its payroll and HR tools into PNC Bank's digital banking platform, CEO Maria Black said on the company's first-quarter fiscal 2027 earnings call on Wednesday. Black said the strategy of embedding ADP in other companies' ecosystems has more pipeline behind it.
PNC Payroll by ADP
The new offering, PNC Payroll by ADP, will give PNC's small business banking customers payroll, HR, time tracking, insurance and retirement tools directly inside the bank's digital banking platform, Black said. She described PNC as one of the largest financial services institutions in the United States.
Black called the deal "a big win for us." PNC serves millions of small businesses alongside retail customers, she said, and has about 2,300 branches plus digital channels.
What sets ADP apart, she said, is its reach into the upper end of the down market, meaning smaller employers, and its ability to embed insurance and retirement services, not just payroll. The offering is meant to serve businesses from startups and one-person operations to more established companies looking to scale.
A pipeline beyond PNC
An analyst from JPMorgan asked whether more bank partnerships could follow. Black did not name any other banks. She said embedded payroll "is a big piece of our strategic priority" and that "there's more pipeline alongside with it."
Black said the PNC deal extends the embedded strategy ADP has discussed for the past couple of years, which involves placing its offerings inside others' ecosystems and bringing other ecosystems into its own.
Record bookings, raised outlook
CFO Peter Hadley said first-quarter revenue grew 6%, adjusted EBIT margin expanded 130 basis points (1.3 percentage points) and adjusted EPS rose 13%, all ahead of the company's expectations. Employer Services posted a record first-quarter new business bookings result, led by retirement and insurance services, which Hadley said are faster to revenue.
ADP lifted its fiscal 2027 outlook. It now expects consolidated revenue growth of about 6% and adjusted EPS growth of 10% to 12%, while holding adjusted EBIT margin expansion at 70 to 90 basis points. Client funds interest revenue is forecast at $1.59 billion to $1.61 billion, up $50 million.
Hadley also raised the pays-per-control forecast, the measure of employment growth at its clients, to about 1% from 0% to 1%. The company kept its 4% to 7% Employer Services growth guidance. ADP's market value was $116.1 billion in Wednesday morning trading.
Hadley said the biggest enterprise Lyric deals will more likely go live at the end of fiscal 2027, with some stretching into fiscal 2028.
Sources
- ADP Reports First Quarter Fiscal 2027 Results - Oct 28, 2026 — mediacenter.adp.com
- ADP boosts FY2027 earnings, revenue growth after Q1 results beat (ADP:NASDAQ) — seekingalpha.com
- Automatic Data Processing (ADP) Tops Q1 Earnings and Revenue Estimates — Yahoo Finance
- ADP 1Q Net Up, Company Boosts FY27 Adj EPS View Amid AI Adoption — MarketWatch
- Automatic Data Processing Earnings Ahead: What Past Reactions Say About The Stock — Yahoo Finance
