ADP Q2 revenue beats; raises FY profit forecast

Automatic Data Processing

28/01/2026 12:04

Overview

HR and payroll solutions firm's Q2 revenue rose 6%, beating analyst expectations

Adjusted EPS for Q2 beat analyst expectations, growing 11% to $2.62

Company raised full-year guidance for revenue and adjusted EPS growth

Outlook

ADP raises full-year revenue growth guidance to about 6%

Company expects diluted EPS growth of 9% to 10% for fiscal 2026

ADP anticipates interest on funds held for clients of $1.310 to $1.330 bln

Result Drivers

INNOVATIVE PRODUCTS - ADP credited its strong Q2 results to innovative products and differentiated service, as stated by CEO Maria Black

NEW BUSINESS BOOKINGS - CFO Peter Hadley noted that a focus on execution and new business bookings growth drove revenue and earnings growth

INTEREST ON CLIENT FUNDS - Interest on funds held for clients increased 13% to $309 million, contributing to overall revenue growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$5.40 bln
$5.34 bln (12 Analysts)
Q2 Adjusted EPS
Beat
$2.62
$2.57 (14 Analysts)
Q2 EPS
$2.62
Q2 Net Income
$1.10 bln
Q2 Adjusted EBIT
Beat
$1.40 bln
$1.35 bln (8 Analysts)
Q2 Adjusted EBIT Margin
26.00%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 11 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy."

Wall Street's median 12-month price target for Automatic Data Processing Inc is $290.00, about 13.9% above its January 27 closing price of $254.51

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 26 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)