Automatic Data ProcessingADPEarnings & Financial Report
Automatic Data Processing, Inc. (ADP) is an American multinational provider of cloud-based human resources management, payroll processing, and professional employer organization (PEO) services, headquartered in Roseland, New Jersey.
Revenue
$5.4B
Gross Profit
$2.5B
Operating Profit
$1.4B
Net Profit
$1.1B
Gross Margin
46.1%
Operating Margin
25.8%
Net Margin
19.8%
YoY Growth
6.2%
EPS
$2.62
Automatic Data Processing Q2 FY2026 Financial Summary
Automatic Data Processing reported revenue of $5.4B (up 6.2% YoY) for Q2 FY2026, with a net profit of $1.1B (up 10.3% YoY) (19.8% margin). Cost of goods sold was $2.9B, operating expenses totaled $1.1B.
Key Financial Metrics
| Total Revenue | $5.4B |
|---|---|
| Net Profit | $1.1B |
| Gross Margin | 46.1% |
| Operating Margin | 25.8% |
| Report Period | Q2 FY2026 |
Revenue Breakdown
Automatic Data Processing Q2 FY2026 revenue of $5.4B breaks down across 5 segments, led by HCM at $2.2B (41.7% of total).
| Segment | Revenue | % of Total |
|---|---|---|
| HCM | $2.2B | 41.7% |
| PEO Zero Margin Benefits Pass Throughs | $1.1B | 21.0% |
| HRO | $979.3M | 18.3% |
| Global | $709.3M | 13.2% |
| Interest On Funds Held For Clients | $308.6M | 5.8% |
Automatic Data Processing Revenue by Segment — Quarterly Trend
Automatic Data Processing revenue by segment across the last 4 reported quarters, showing how each business line (such as HCM and PEO Zero Margin Benefits Pass Throughs) has evolved quarter over quarter.
| Segment | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 |
|---|---|---|---|---|
| HCM | — | $2.2B | $2.2B | $2.1B |
| PEO Zero Margin Benefits Pass Throughs | — | $1.1B | $1.1B | $1.1B |
| HRO | — | $979.3M | $911.4M | $910.3M |
| Global | — | $709.3M | $690.3M | $689.2M |
| Interest On Funds Held For Clients | — | $308.6M | $286.8M | $307.8M |
Automatic Data Processing Annual Revenue by Year
Automatic Data Processing annual revenue history includes year-by-year totals (for example, 2025 revenue was $20.6B).
| Year | Annual Revenue |
|---|---|
| 2025 | $20.6B |
| 2024 | $19.2B |
| 2023 | $18.0B |
| 2022 | $16.5B |
Automatic Data Processing Quarterly Revenue & Net Profit History
Automatic Data Processing results over the last 8 reported quarters, including revenue, net profit and year-over-year growth.
| Quarter | Revenue | Revenue YoY | Net Profit | Net Margin |
|---|---|---|---|---|
| Q3 FY2026 | $5.9B | +7.0% | $1.4B | 22.9% |
| Q2 FY2026 | $5.4B | +6.2% | $1.1B | 19.8% |
| Q1 FY2026 | $5.2B | +7.1% | $1.0B | 19.6% |
| Q4 FY2025 | $5.1B | +7.5% | $910.7M | 17.8% |
| Q3 FY2025 | $5.6B | +5.7% | $1.2B | 22.5% |
| Q2 FY2025 | $5.0B | +8.1% | $963.2M | 19.1% |
| Q1 FY2025 | $4.8B | +7.1% | $956.3M | 19.8% |
| Q4 FY2024 | $4.8B | +6.5% | $829.3M | 17.4% |
Income Statement
| Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | $4.77B | $4.83B | $5.05B | $5.55B | $5.13B | $5.18B | $5.36B | $5.94B |
| YoY Growth | 6.5% | 7.1% | 8.1% | 5.7% | 7.5% | 7.1% | 6.2% | 7.0% |
Balance Sheet
| Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 | |
|---|---|---|---|---|---|---|---|---|
| Assets | $54.36B | $49.51B | $64.10B | $56.45B | $53.37B | $54.32B | $84.64B | $64.48B |
| Liabilities | $49.82B | $44.16B | $59.02B | $50.59B | $47.18B | $47.95B | $78.25B | $58.13B |
| Equity | $4.55B | $5.35B | $5.08B | $5.86B | $6.19B | $6.37B | $6.39B | $6.35B |
Cash Flow
| Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | |
|---|---|---|---|---|---|---|---|
| Operating CF | $1.30B | $824.4M | $1.15B | $1.53B | $1.44B | $642.3M | $1.13B |