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Automatic Data Processing (ADP)
NASDAQ:ADP
Earnings Data
Report Date
May 06, 2026Before Open (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
3.29Last Year’s EPS
3.06Same Quarter Last Year
Based on 12 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive tone: strong Q2 financial results, upward revisions to revenue and EPS guidance, record client satisfaction, meaningful product and AI momentum (Workforce Now NextGen, Lyric, ADP Assist), and a substantial $6B buyback and 10% dividend increase. Headwinds were noted in the PEO business (weaker underlying growth ex pass-throughs, 70 bps margin decline), a modest retention decline, and near-term margin cadence pressure driven by portfolio yield/timing effects. On balance, the highlights significantly outweigh the lowlights.Company Guidance
Strong Quarterly Financial Results
Q2 consolidated revenue growth of 6%; adjusted EBIT margin expansion of 80 basis points in the quarter; adjusted EPS growth of 11% year-over-year.
Raised Full-Year Outlook and Shareholder Returns
Management increased fiscal 2026 consolidated revenue outlook to about 6% and raised adjusted EPS growth guidance to 9%–10%; maintained adjusted EBIT margin expansion guidance of 50–70 basis points. Board authorized a $6 billion share repurchase program and announced a 10% dividend increase.
Employer Services and Client Funds Strength
Employer Services (ES) revenue up 6% reported (5% organic constant currency) with a 50 basis point ES margin increase in Q2. Client funds interest revenue forecast raised by $10 million to $1.31–$1.33 billion; updated forecast for average client funds balance growth of 4%–5% and average yield of ~3.4%.
Product & AI Momentum (Workforce Now, Lyric, ADP Assist)
Workforce Now NextGen reached first sale to a client with >1,000 employees; Lyric new business bookings exceeded expectations with >70% of bookings and pipeline from new logos and two wins >20,000 employees; launched ADP Workforce Suite; embedded Fiserv Cash Flow Central into RUN; scaling ADP Assist persona-based AI agents across payroll, HR, analytics and tax.
Record Client Satisfaction and International Win
Q2 represented the single best quarter for overall client satisfaction in company history. Significant international win: large European bank with >75,000 employees. Company serves >70,000 clients outside the U.S. and pays >16 million wage earners across 140+ countries.
PEO Revenue Growth Including Pass-Throughs
PEO revenue grew 6% in Q2 (including zero-margin pass-throughs), demonstrating continued demand for PEO and outsourcing services, and management described PEO bookings as solid.
ADP Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ADP Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jan 28, 2026 | $254.51 | $250.69 | -1.50% |
Oct 29, 2025 | $277.83 | $259.54 | -6.58% |
Jul 30, 2025 | $305.07 | $307.35 | +0.75% |
Apr 30, 2025 | $290.90 | $295.65 | +1.63% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Automatic Data Processing (ADP) report earnings?
Automatic Data Processing (ADP) is schdueled to report earning on May 06, 2026, Before Open (Confirmed).
What is Automatic Data Processing (ADP) earnings time?
Automatic Data Processing (ADP) earnings time is at May 06, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ADP EPS forecast?
ADP EPS forecast for the fiscal quarter 2026 (Q3) is 3.29.
