Automatic Data Processing Inc

Latest Results (13.03.2026):

Automatic Data Processing, Inc. — Second quarter fiscal 2026: ADP reported solid results with revenues of $5.4 billion (up 6% year‑over‑year; 5% organic constant currency), net earnings of about $1.1 billion (up 10%), and diluted EPS of $2.62 (up 11%). Adjusted EBIT was about $1.4 billion with an adjusted EBIT margin of 26.0% (up 80 bps). The company raised its full‑year fiscal 2026 guidance for revenue and adjusted diluted EPS growth.

Revenues

Total revenues were $5.359 billion, +6% vs. prior year (5% organic constant currency). Employer Services revenue was $3.607 billion (+6%) and PEO Services revenue was $1.755 billion (+6%).

Profitability & margins

Net earnings were about $1.06 billion (+10%). Adjusted net earnings and adjusted EBIT rose ~10% (adjusted EBIT ~ $1.4 billion). Adjusted EBIT margin expanded to 26.0%, an 80‑basis‑point improvement. Reported and adjusted effective tax rate for the quarter was ~23.2%.

Earnings per share

Diluted EPS increased 11% to $2.62 for the quarter; adjusted diluted EPS also reported at $2.62. Six‑month diluted EPS was $5.12, up ~9% year‑to‑date.

Segment performance

Employer Services: revenue +6%, segment margin ~35.4% (+50 bps), U.S. pays per control +1%. PEO Services: revenue +6% (3% ex zero‑margin benefits pass‑throughs), average paid worksite employees ~758,000 (end of period ~762,000); PEO segment margin down ~70 bps to ~14.4%.

Client funds and investment income

Interest on funds held for clients was $308.6 million (+13%); average client funds balances were $37.6 billion (+6%) and average yield on client funds rose to 3.3% (up 20 bps). ADP’s fiscal 2026 outlook anticipates client funds interest of $1.31–$1.33 billion and a blended client funds yield near 3.4%.

Balance sheet & cash flow highlights

Total assets were $84.64 billion (Dec 31, 2025) driven by funds held for clients of $67.51 billion. Six‑month operating cash flow was $1.775 billion. Financing activity included a large net increase in client funds obligations, supporting the rise in client funds balances.

Fiscal 2026 outlook

ADP updated fiscal 2026 guidance: consolidated revenue growth of about 6%; adjusted EBIT margin expansion of 50–70 bps; adjusted effective tax rate ~23%; diluted and adjusted diluted EPS growth of 9–10%. Employer Services revenue ~6% and new business bookings +4–7%; PEO Services revenue growth 5–7% and average WSE growth ~2%.