Automatic Data Processing (ADP) Q3 FY2026 earnings: revenue $5.9 billion, up 7.0% on the year

Automatic Data Processing Inc. (ADP) reported revenue of $5.9 billion for Q3 FY2026, the quarter ended 31 March 2026, up 7.0% on the same quarter a year earlier. Net income was $1.4 billion, up 8.8% on the year, and diluted earnings per share $3.38. The figures are the company's own, from the 10-Q it filed with the SEC on 30 April 2026.

Revenue

$5.9 billion

+7.0% on the year · +10.8% on the quarter

Q4 FY2024Q3 FY2026

Operating margin

28.7%

28.1% a year earlier

Q4 FY2024Q3 FY2026

Net income

$1.4 billion

+8.8% on the year · +28.0% on the quarter

Q4 FY2024Q3 FY2026

Diluted EPS

$3.38

+10.5% on the year · +29.0% on the quarter

Q4 FY2024Q3 FY2026

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

What management said

Guidance figures: 9 raised, 2 narrowed, 4 kept.

Revenues grew 7 percent to 5.9 billion: Revenues increased 7% on reported basis to $5.9 billion, or 6% on organic constant currency basis. Net earnings grew 9% to $1.4 billion. Management said results came in ahead of expectations across revenue growth, adjusted EBIT margin, and adjusted EPS.
Employer Services revenues grew 7 percent: Employer Services revenues increased 7% on reported basis to $4.0 billion and 5% on organic constant currency basis. Growth was driven by price increases and client volume gains.
Client funds interest income increased 14 percent: Interest on funds held for clients increased 14% to $404 million. This growth was driven by client funds balance growth and higher interest yields on portfolio investments.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Revenue	5,939	5,359	5,553	+10.8%	+7.0%
Cost of revenue	3,072	2,890	2,904	+6.3%	+5.8%
Gross profit	2,867	2,470	2,649	+16.1%	+8.2%
Gross margin	48.3%	46.1%	47.7%
Research and development	254	258	247	-1.5%	+2.8%
Selling, general and administrative	1,082	1,068	1,016	+1.3%	+6.5%
Operating income	1,707	1,277	1,558	+33.6%	+9.5%
Operating margin	28.7%	23.8%	28.1%
Interest expense	78.7	124	74.8	-36.6%	+5.2%
Pre-tax income	1,782	1,383	1,622	+28.8%	+9.9%
Income tax	422	321	372	+31.4%	+13.3%
Effective tax rate	23.7%	23.2%	23.0%
Net income	1,360	1,062	1,250	+28.0%	+8.8%
Net margin	22.9%	19.8%	22.5%
Diluted EPS	$3.38	$2.62	$3.06	+29.0%	+10.5%

$ 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	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Operating cash flow	2,238	1,133	1,526	+97.5%	+46.7%
Capital expenditure	50.6	26.5	36.4	+90.9%	+39.0%
Free cash flow	2,187	1,106	1,489	+97.7%	+46.9%
Free cash flow margin	36.8%	20.6%	26.8%
Cash from investing	-1,216	-677	-556
Cash from financing	-22,043	29,178	-9,399
Depreciation and amortisation	146	146	147	+0.5%	-0.5%
Share-based compensation	51.0	73.2	62.8	-30.3%	-18.8%
Buybacks	581	516	312	+12.7%	+86.6%
Dividends paid	687	629	628	+9.2%	+9.4%
Dividend per share	$1.70	$1.70	$1.54	0.0%	+10.4%
Diluted shares, weighted	402m	405m	408m	-0.5%	-1.5%
Shares outstanding at period end	401m	403m	406m	-0.6%	-1.4%

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	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Shareholders' equity	6,350	6,393	5,855	-0.7%	+8.5%
Debt	3,977	4,022	3,983	-1.1%	-0.1%
Operating lease liabilities	318	348	283	-8.5%	+12.4%
Other liabilities	53,839	73,877	46,327	-27.1%	+16.2%
Total liabilities and equity	64,484	84,639	56,449	-23.8%	+14.2%
Fixed assets	623	623	670	0.0%	-7.1%
Goodwill	3,289	3,294	3,300	-0.2%	-0.3%
Intangible assets	1,641	1,622	1,604	+1.1%	+2.3%
Investments	0.0	45.7	0.0
Cash and equivalents	3,228	2,425	2,681	+33.1%	+20.4%
Receivables	3,569	3,408	3,548	+4.7%	+0.6%
Other assets	52,134	73,221	44,645	-28.8%	+16.8%
Total assets	64,484	84,639	56,449	-23.8%	+14.2%

Questions

What was Automatic Data Processing's revenue in Q3 FY2026?

Automatic Data Processing (ADP) reported revenue of $5.9 billion for Q3 FY2026, the quarter ended 31 March 2026, up 7.0% on the same quarter a year earlier.

How much did Automatic Data Processing earn in Q3 FY2026?

Net income for Q3 FY2026 was $1.4 billion, up 8.8% on the year, and diluted earnings per share $3.38.

When did Automatic Data Processing report Q3 FY2026 results?

Automatic Data Processing filed its 10-Q for the quarter ended 31 March 2026 with the SEC on 30 April 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 March 2026, filed 30 April 2026: the filing.