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Dec 31, 2021

ADP Q2 2022 Earnings Report

ADP's Q2 2022 financial results were reported, showing revenue growth and increased earnings per share.

Key Takeaways

ADP reported a 9% increase in revenues to $4.0 billion compared to the previous year's second quarter. Net earnings increased by 7% to $694 million, with diluted earnings per share increasing by 9% to $1.65. The company also raised its fiscal year 2022 guidance, reflecting strong momentum across the business.

Revenues increased 9% compared to last year's second quarter to $4.0 billion.

Net earnings increased 7% to $694 million, and adjusted net earnings increased 7% to $697 million.

Diluted earnings per share increased 9% to $1.65; adjusted diluted EPS increased 9% to $1.65.

Fiscal 2022 guidance increased as strong momentum continues across the business.

Total Revenue
$4.03B
Previous year: $3.7B
+8.9%
EPS
$1.65
Previous year: $1.52
+8.6%
Pays per control growth
6%
Previous year: -6%
-200.0%
Avg Paid PEO Employees
660K
Previous year: 571K
+15.6%
Paid PEO Employees (end)
668K
Previous year: 579K
+15.4%
Gross Profit
$1.58B
Previous year: $1.47B
+7.5%
Cash and Equivalents
$1.75B
Previous year: $1.6B
+8.9%
Total Assets
$59.1B
Previous year: $49.3B
+19.8%

ADP

ADP

ADP Revenue by Segment

Forward Guidance

ADP provided its fiscal year 2022 outlook, including revenue growth of 8% to 9% and adjusted diluted EPS growth of 12% to 14%.

Positive Outlook

  • Revenue growth of 8% to 9%.
  • Adjusted EBIT margin expansion of 50 to 75 basis points.
  • Adjusted effective tax rate of approximately 22.5%.
  • Diluted EPS growth of 11% to 13%.
  • Adjusted diluted EPS growth of 12% to 14%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income