Filing Flows › Automatic Data Processing (ADP) › Q2 FY26
Automatic Data Processing (ADP) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Jan 29, 2026
Automatic Data Processing (ADP) reported revenue of $5.4B for the second quarter fiscal 2026 (Q2 FY26), +6% from a year earlier and +4% from the quarter before. Operating margin was 23.8%, net earnings $1.1B (19.8% of revenue).
Automatic Data Processing, Q2 FY26: revenue $5.4B (+6% year over year), operating margin 23.8%, net earnings $1.1B, operating cash flow $1.1B. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $5.4B | +4% | +6% |
| Operating profit | $1.3B | +7% | +9% |
| Net earnings | $1.1B | +5% | +10% |
| Operating cash flow | $1.1B | +76% | -2% |
| Free cash flow | $1.1B | +86% | -0.4% |
What changed
Revenue was $5.4B in Q2 FY26, up 6% year over year and up 4% from the previous quarter. HCM was the largest line at 42% of revenue. HCM added $0.10B year over year (up 5%), 33% of the total change.
Operating profit was $1.3B, a 23.8% margin (up 0.7 points year over year). Of the extra revenue versus a year earlier, 34% reached operating profit, above the 23% margin then. Total costs grew 5% against revenue growth of 6%. Net earnings were $1.1B, up 10% year over year. The effective tax rate was 23.2%.
Operating cash flow was $1.1B (down 2% year over year), 107% of net earnings. Non-cash charges added back $0.15B of depreciation and amortization and $0.07B of share-based compensation. Working capital and other items used $0.15B. Capital expenditures of $0.03B left free cash flow of $1.1B.
Questions
What was Automatic Data Processing's revenue in the second quarter fiscal 2026?
Automatic Data Processing (ADP) reported revenue of $5.4B for the second quarter fiscal 2026 (Q2 FY26), +6% from a year earlier and +4% from the quarter before.
Was Automatic Data Processing profitable in the second quarter fiscal 2026?
Operating profit was $1.3B (23.8% of revenue) and net earnings $1.1B.