Filing Flows › Automatic Data Processing (ADP) › Q4 FY26 › vs Q3 FY26
Automatic Data Processing (ADP) Q4 FY26 vs Q3 FY26 (quarter over quarter)
Automatic Data Processing's revenue fell $465M (-8%) from $5.9B in Q3 FY26 to $5.5B in Q4 FY26. The biggest changes: Revenues, other than interest on funds held for clients and PEO revenues −$317M (-9%); HRO, excluding PEO zero-margin benefits pass-throughs −$159M (-14%); PEO zero-margin benefits pass-throughs +$10.1M (+0.9%). Operating margin 20.8% against 28.7% (-7.9 pts).
Automatic Data Processing, Q4 FY26: revenue $5.5B (+7% year over year), operating margin 20.8%, net earnings $979M, operating cash flow $1.4B. The chart draws each line against Q3 FY26, the increases inside each band.
Margins
| Q4 FY26 | Q3 FY26 | Change | |
|---|---|---|---|
| Operating margin | 20.8% | 28.7% | -7.9 pts |
| Net margin | 17.9% | 22.9% | -5.0 pts |
| Free cash flow margin | 24.8% | 36.8% | -12.1 pts |
Every line
| Line | Q4 FY26 | Q3 FY26 | Change | % |
|---|---|---|---|---|
| HCM | $2.2B | $2.5B | −$266M | -11% |
| Global | $750M | $752M | −$2.1M | -0.3% |
| Interest on funds held for clients | $355M | $404M | −$48.5M | -12% |
| Revenues, other than interest on funds held for clients and PEO revenues | $3.3B | $3.6B | −$317M | -9% |
| PEO zero-margin benefits pass-throughs | $1.2B | $1.2B | $10.1M | +0.9% |
| HRO, excluding PEO zero-margin benefits pass-throughs | $962M | $1.1B | −$159M | -14% |
| Revenue | $5.5B | $5.9B | −$465M | -8% |
| Other income, net | $120M | $75.0M | $44.7M | +60% |
| Operating profit | $1.1B | $1.7B | −$569M | -33% |
| Costs & expenses | $4.3B | $4.2B | $103M | +2% |
| Pre-tax earnings | $1.3B | $1.8B | −$524M | -29% |
| Net earnings | $979M | $1.4B | −$381M | -28% |
| Income tax | $279M | $422M | −$143M | -34% |
| Depreciation & amortization | $147M | $146M | $800K | +0.5% |
| Share-based compensation | $59.7M | $51.0M | $8.7M | +17% |
| Working capital & other | $242M | $681M | −$438M | -64% |
| Operating cash flow | $1.4B | $2.2B | −$810M | -36% |
| Free cash flow (OCF − capex) | $1.4B | $2.2B | −$832M | -38% |
| Capital expenditures | $72.8M | $50.6M | $22.2M | +44% |
Questions
How much did Automatic Data Processing's revenue grow quarter over quarter in Q4 FY26?
Automatic Data Processing's revenue fell $465M (-8%) from $5.9B in Q3 FY26 to $5.5B in Q4 FY26.
What drove Automatic Data Processing's revenue change in Q4 FY26?
Revenues, other than interest on funds held for clients and PEO revenues −$317M (-9%); HRO, excluding PEO zero-margin benefits pass-throughs −$159M (-14%); PEO zero-margin benefits pass-throughs +$10.1M (+0.9%).