Description
Automatic Data Processing Is Winning the Long Game in HCM—One High-Value Contract at a Time!
Automatic Data Processing, Inc. (ADP) has released its second quarter fiscal 2026 earnings, showing notable financial and strategic performance. The company reported a 6% increase in revenue alongside an 80 basis point increase in its adjusted EBIT margin. Additionally, ADP’s adjusted EPS grew by 11%. The growth was primarily driven by solid new business bookings, particularly in the international, U.S. enterprise, and compliance segments. However, a slight decline in retention rates was noted, though this was anticipated within the company’s forecasts. ADP’s strategic priorities include leveraging best-in-class HCM technology, enhancing client expertise, and optimizing its global scale. The Workforce Now Next Gen and ADP Lyric HCM platforms showed strong traction, with notable wins in the enterprise space as illustrated by successful sales to significant clients. The acquisition strategy also reflects in the successful integration of WorkForce Software into the ADP WorkForce Suite, which contributed positively to the quarter.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures
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