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Dec 31, 2025
ADP Q2 2026 Earnings Report
ADP reported strong financial results for Q2 2026, with growth in revenue and earnings.
Key Takeaways
ADP delivered solid top- and bottom-line growth in Q2 2026, supported by broad-based bookings momentum and record-high client satisfaction.
Revenue reached $5.36 billion, up from $5.05 billion a year ago
Adjusted EPS grew to $2.62, reflecting 11% growth
Net income totaled $1.393 billion for the quarter
Strong new business growth and launch of ADP WorkForce Suite supported results
Revenue by Segment
Forward Guidance
ADP expects continued revenue and EPS growth in fiscal 2026, with strong client funds interest revenue and margin expansion.
Positive Outlook
- Total revenue expected to grow ~6%
- Adjusted EBIT margin expansion of 50 to 70 bps
- Adjusted EPS projected to grow 9 to 10%
- Employer Services revenue expected to grow ~6%
- Client funds interest revenue forecasted between $1.31B and $1.33B
Challenges Ahead
- Flat growth expected in U.S. pays per control
- PEO segment margin declined 70 bps in Q2
- Higher selling expenses impacting PEO margin
- Client revenue retention projected to decline 10 to 30 bps
- Short-term financing costs affecting net client funds impact
Historical Earnings Impact
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Avg. Return Before/After Earnings
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