Filing Flows › Automatic Data Processing (ADP) › Q1 FY27 › vs Q1 FY26
Automatic Data Processing (ADP) Q1 FY27 vs Q1 FY26 (year over year)
Automatic Data Processing's revenue rose $316M (+6%) from $5.2B in Q1 FY26 to $5.5B in Q1 FY27. The biggest changes: HCM +$99.7M (+5%); PEO zero-margin benefits pass-throughs +$97.6M (+9%); Interest on funds held for clients +$42.5M (+15%). Operating margin 23.9% against 23.1% (+0.8 pts).
Automatic Data Processing, Q1 FY27: revenue $5.5B (+6% year over year), operating margin 23.9%, net earnings $1.1B, operating cash flow $651M. The chart draws each line against Q1 FY26, the increases inside each band.
Margins
| Q1 FY27 | Q1 FY26 | Change | |
|---|---|---|---|
| Operating margin | 23.9% | 23.1% | +0.8 pts |
| Net margin | 20.5% | 19.6% | +0.9 pts |
| Free cash flow margin | 10.9% | 11.5% | -0.6 pts |
Every line
| Line | Q1 FY27 | Q1 FY26 | Change | % |
|---|---|---|---|---|
| HCM | $2.3B | $2.2B | $99.7M | +5% |
| PEO zero-margin benefits pass-throughs | $1.2B | $1.1B | $97.6M | +9% |
| HRO, excluding PEO zero-margin benefits pass-throughs | $953M | $911M | $41.7M | +5% |
| Global | $724M | $690M | $34.0M | +5% |
| Interest on funds held for clients | $329M | $287M | $42.5M | +15% |
| Revenue | $5.5B | $5.2B | $316M | +6% |
| Other income, net | $140M | $110M | $30.2M | +27% |
| Operating profit | $1.3B | $1.2B | $117M | +10% |
| Costs & expenses | $4.2B | $4.0B | $198M | +5% |
| Pre-tax earnings | $1.5B | $1.3B | $147M | +11% |
| Net earnings | $1.1B | $1.0B | $112M | +11% |
| Income tax | $330M | $294M | $35.2M | +12% |
| Depreciation & amortization | $155M | $147M | $8.3M | +6% |
| Share-based compensation | $67.2M | $58.7M | $8.5M | +14% |
| Working capital & other | $696M | $576M | $120M | +21% |
| Operating cash flow | $651M | $642M | $8.7M | +1% |
| Free cash flow (OCF − capex) | $598M | $596M | $2.7M | +0.5% |
| Capital expenditures | $52.7M | $46.7M | $6.0M | +13% |
Questions
How much did Automatic Data Processing's revenue grow year over year in Q1 FY27?
Automatic Data Processing's revenue rose $316M (+6%) from $5.2B in Q1 FY26 to $5.5B in Q1 FY27.
What drove Automatic Data Processing's revenue change in Q1 FY27?
HCM +$99.7M (+5%); PEO zero-margin benefits pass-throughs +$97.6M (+9%); Interest on funds held for clients +$42.5M (+15%).