Automatic Data Processing (ADP) Q2 FY2026 earnings: revenue $5.4 billion, up 6.2% on the year

Automatic Data Processing Inc. (ADP) reported revenue of $5.4 billion for Q2 FY2026, the quarter ended 31 December 2025, up 6.2% on the same quarter a year earlier. Net income was $1.1 billion, up 10.3% on the year, and diluted earnings per share $2.62. The figures are the company's own, from the 10-Q it filed with the SEC on 29 January 2026.

Revenue

$5.4 billion

+6.2% on the year · +3.6% on the quarter

Q3 FY2024Q2 FY2026

Operating margin

23.8%

23.2% a year earlier

Q3 FY2024Q2 FY2026

Net income

$1.1 billion

+10.3% on the year · +4.8% on the quarter

Q3 FY2024Q2 FY2026

Diluted EPS

$2.62

+11.5% on the year · +5.2% on the quarter

Q3 FY2024Q2 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 3 raised, 1 lowered, 5 narrowed, 8 kept.

Revenue and earnings both grew: Revenues rose 6% to $5.4 billion, or 5% organic constant currency, and adjusted EBIT rose 10% to $1.4 billion. Adjusted EBIT margin was 26.0%.
Employer Services revenue up 6%: Employer Services revenue rose 6% reported and 5% organic constant currency. U.S. pays per control rose 1%.
Adjusted EBIT margin up 80 basis points: Adjusted EBIT margin rose to 26.0% from 25.2%, and pretax margin rose to 25.8% from 25.0%. Employer Services segment margin rose 50 basis points to 35.4%.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Revenue	5,359	5,175	5,048	+3.6%	+6.2%
Cost of revenue	2,890	2,836	2,742	+1.9%	+5.4%
Gross profit	2,470	2,339	2,306	+5.6%	+7.1%
Gross margin	46.1%	45.2%	45.7%
Research and development	258	251	240	+2.6%	+7.6%
Selling, general and administrative	1,068	1,006	1,006	+6.1%	+6.2%
Operating income	1,277	1,197	1,170	+6.7%	+9.2%
Operating margin	23.8%	23.1%	23.2%
Interest expense	124	135	130	-8.3%	-4.2%
Pre-tax income	1,383	1,308	1,261	+5.8%	+9.7%
Income tax	321	294	298	+9.1%	+7.7%
Effective tax rate	23.2%	22.5%	23.6%
Net income	1,062	1,013	963	+4.8%	+10.3%
Net margin	19.8%	19.6%	19.1%
Diluted EPS	$2.62	$2.49	$2.35	+5.2%	+11.5%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Operating cash flow	1,133	642	1,150	+76.4%	-1.5%
Capital expenditure	26.5	46.7	39.4	-43.3%	-32.7%
Free cash flow	1,106	596	1,111	+85.8%	-0.4%
Free cash flow margin	20.6%	11.5%	22.0%
Cash from investing	-677	-1,863	-1,258
Cash from financing	29,178	164	13,974	+17,680.9%	+108.8%
Depreciation and amortisation	146	147	151	-0.7%	-3.6%
Share-based compensation	73.2	58.7	79.1	+24.7%	-7.5%
Buybacks	516	366	272	+40.9%	+89.4%
Dividends paid	629	627	572	+0.4%	+9.9%
Dividend per share	$1.70	$1.54	$1.54	+10.4%	+10.4%
Diluted shares, weighted	405m	406m	409m	-0.4%	-1.1%
Shares outstanding at period end	403m	405m	407m	-0.5%	-1.0%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Shareholders' equity	6,393	6,374	5,078	+0.3%	+25.9%
Debt	4,022	9,431	3,982	-57.4%	+1.0%
Operating lease liabilities	348	342	300	+1.7%	+15.8%
Other liabilities	73,877	38,174	54,736	+93.5%	+35.0%
Total liabilities and equity	84,639	54,321	64,097	+55.8%	+32.0%
Fixed assets	623	647	682	-3.7%	-8.7%
Goodwill	3,294	3,275	3,184	+0.6%	+3.5%
Intangible assets	1,622	1,598	1,739	+1.5%	-6.7%
Investments	45.7	5,466	0.0	-99.2%
Cash and equivalents	2,425	2,478	2,216	-2.2%	+9.4%
Receivables	3,408	3,464	3,504	-1.6%	-2.7%
Other assets	73,221	37,393	52,772	+95.8%	+38.8%
Total assets	84,639	54,321	64,097	+55.8%	+32.0%

Questions

What was Automatic Data Processing's revenue in Q2 FY2026?

Automatic Data Processing (ADP) reported revenue of $5.4 billion for Q2 FY2026, the quarter ended 31 December 2025, up 6.2% on the same quarter a year earlier.

How much did Automatic Data Processing earn in Q2 FY2026?

Net income for Q2 FY2026 was $1.1 billion, up 10.3% on the year, and diluted earnings per share $2.62.

When did Automatic Data Processing report Q2 FY2026 results?

Automatic Data Processing filed its 10-Q for the quarter ended 31 December 2025 with the SEC on 29 January 2026.

Quarterly results, the last 20 quarters

	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027
Revenue	4,025	4,513	4,128	4,216	4,391	4,928	4,478	4,512	4,668	5,254	4,768	4,833	5,048	5,553	5,127	5,175	5,359	5,939	5,474	5,491
Cost of revenue	2,341	2,512	2,386	2,394	2,451	2,624	2,485	2,515	2,562	2,768	2,632	2,634	2,742	2,904	2,817	2,836	2,890	3,072	2,962	2,965
Gross profit	1,684	2,001	1,742	1,822	1,940	2,304	1,992	1,997	2,106	2,486	2,137	2,199	2,306	2,649	2,310	2,339	2,470	2,867	2,511	2,526
Gross margin	42%	44%	42%	43%	44%	47%	44%	44%	45%	47%	45%	46%	46%	48%	45%	45%	46%	48%	46%	46%
R&D	n/a	n/a	n/a	210	204	209	222	236	229	243	248	233	240	247	269	251	258	254	266	251
SG&A	782	818	914	800	856	938	957	880	922	941	1,035	927	1,006	1,016	1,103	1,006	1,068	1,082	1,252	1,063
Operating income	884	1,165	801	970	1,028	1,328	928	1,025	1,079	1,482	1,000	1,134	1,170	1,558	1,093	1,197	1,277	1,707	1,138	1,315
Operating margin	22%	26%	19%	23%	23%	27%	21%	23%	23%	28%	21%	23%	23%	28%	21%	23%	24%	29%	21%	24%
Interest expense	18.4	18.4	26.6	51.2	57.0	38.3	107	91.6	105	62.7	102	138	130	74.8	114	135	124	78.7	121	148
Pre-tax income	910	1,190	803	1,010	1,058	1,364	1,006	1,093	1,144	1,546	1,089	1,236	1,261	1,622	1,191	1,308	1,383	1,782	1,258	1,455
Tax rate	24%	22%	22%	23%	23%	24%	23%	21%	23%	23%	24%	23%	24%	23%	24%	23%	23%	24%	22%	23%
Net income	694	928	626	779	813	1,043	777	859	878	1,185	829	956	963	1,250	911	1,013	1,062	1,360	979	1,125
Net margin	17%	21%	15%	18%	19%	21%	17%	19%	19%	23%	17%	20%	19%	23%	18%	20%	20%	23%	18%	20%
Diluted EPS	$1.65	$2.21	$1.49	$1.87	$1.95	$2.51	$1.87	$2.08	$2.13	$2.88	$2.02	$2.34	$2.35	$3.06	$2.23	$2.49	$2.62	$3.38	$2.45	$2.83
Operating cash flow	1,094	971	913	718	900	1,404	1,186	326	1,032	1,498	1,301	824	1,150	1,526	1,439	642	1,133	2,238	1,428	651
Capital expenditure	39.9	51.0	47.6	45.4	49.7	50.3	60.9	39.3	54.8	59.6	54.7	58.8	39.4	36.4	34.1	46.7	26.5	50.6	72.8	52.7
Free cash flow	1,054	920	865	673	850	1,354	1,125	287	978	1,438	1,246	766	1,111	1,489	1,405	596	1,106	2,187	1,355	598
Buybacks	462	491	488	333	220	264	304	250	255	292	436	373	272	312	324	366	516	581	620	759
Dividends paid	394	438	434	433	433	521	518	516	516	576	575	573	572	628	626	627	629	687	683	677
Shares outstanding	420m	418m	416m	415m	414m	414m	412m	412m	411m	410m	408m	408m	407m	406m	405m	405m	403m	401m	398m	396m
Filing	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 December 2025, filed 29 January 2026: the filing.