Filing Flows › Automatic Data Processing (ADP) › Q1 FY27 › vs Q4 FY26
Automatic Data Processing (ADP) Q1 FY27 vs Q4 FY26 (quarter over quarter)
Automatic Data Processing's revenue rose $16.9M (+0.3%) from $5.5B in Q4 FY26 to $5.5B in Q1 FY27. The biggest changes: PEO zero-margin benefits pass-throughs +$48.5M (+4%); HCM +$28.9M (+1%); Interest on funds held for clients −$26.1M (-7%). Operating margin 23.9% against 20.8% (+3.2 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 Q4 FY26, the increases inside each band.
Margins
| Q1 FY27 | Q4 FY26 | Change | |
|---|---|---|---|
| Operating margin | 23.9% | 20.8% | +3.2 pts |
| Net margin | 20.5% | 17.9% | +2.6 pts |
| Free cash flow margin | 10.9% | 24.8% | -13.9 pts |
Every line
| Line | Q1 FY27 | Q4 FY26 | Change | % |
|---|---|---|---|---|
| HCM | $2.3B | $2.2B | $28.9M | +1% |
| PEO zero-margin benefits pass-throughs | $1.2B | $1.2B | $48.5M | +4% |
| HRO, excluding PEO zero-margin benefits pass-throughs | $953M | $962M | −$8.9M | -0.9% |
| Global | $724M | $750M | −$25.5M | -3% |
| Interest on funds held for clients | $329M | $355M | −$26.1M | -7% |
| Revenue | $5.5B | $5.5B | $16.9M | +0.3% |
| Other income, net | $140M | $120M | $20.6M | +17% |
| Operating profit | $1.3B | $1.1B | $176M | +16% |
| Costs & expenses | $4.2B | $4.3B | −$160M | -4% |
| Pre-tax earnings | $1.5B | $1.3B | $197M | +16% |
| Net earnings | $1.1B | $979M | $147M | +15% |
| Income tax | $330M | $279M | $50.5M | +18% |
| Depreciation & amortization | $155M | $147M | $7.8M | +5% |
| Share-based compensation | $67.2M | $59.7M | $7.5M | +13% |
| Working capital & other | $696M | −$242M | $939M | — |
| Operating cash flow | $651M | $1.4B | −$777M | -54% |
| Free cash flow (OCF − capex) | $598M | $1.4B | −$757M | -56% |
| Capital expenditures | $52.7M | $72.8M | −$20.1M | -28% |
Questions
How much did Automatic Data Processing's revenue grow quarter over quarter in Q1 FY27?
Automatic Data Processing's revenue rose $16.9M (+0.3%) from $5.5B in Q4 FY26 to $5.5B in Q1 FY27.
What drove Automatic Data Processing's revenue change in Q1 FY27?
PEO zero-margin benefits pass-throughs +$48.5M (+4%); HCM +$28.9M (+1%); Interest on funds held for clients −$26.1M (-7%).