| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 5.9K | 10.8% | 7.0% |
| Total Income | 5.9K | 10.8% | 7.0% |
| Expenditure | 4.2K | 3.7% | 6.0% |
| PBT | 1.8K | 28.8% | 9.9% |
| Net Profit | 1.4K | 28.0% | 8.8% |
| OPM | — | ||
| NPM | 22.89% | 3.08pp | 0.39pp |
| EPS | 3.39 | 28.9% | 10.4% |
ADP Reports Q3 FY26 Results: Revenue Up 7% to $5.9 Billion
03 May 2026 · 3 May, 6:21 pm
Summary
Automatic Data Processing, Inc. reported a strong third quarter fiscal 2026, with revenues increasing 7% to $5.9 billion. Net earnings and adjusted net earnings both increased by 9% to $1.4 billion. Adjusted EBIT increased 10% to $1.8 billion, resulting in an adjusted EBIT margin of 30.2%, an increase of 80 basis points. The company is raising its full year guidance for revenue, adjusted EBIT margin, and adjusted diluted EPS growth.
Key Highlights
- 1
Revenues increased 7% compared to last year's third quarter to $5.9 billion, with 6% organic constant currency growth.
- 2
Net earnings increased 9% to $1.4 billion, and adjusted net earnings also increased 9% to $1.4 billion.
- 3
Adjusted EBIT increased 10% to $1.8 billion, and adjusted EBIT margin increased 80 basis points to 30.2%.
- 4
Diluted earnings per share increased 10% to $3.38, while adjusted diluted EPS increased 10% to $3.37.
- 5
Interest on funds held for clients increased 14% to $404 million.
- 6
The company is raising full year guidance for revenue, adjusted EBIT Margin, and adjusted diluted EPS growth.
Management Comments
Maria Black
"We delivered a strong quarter, and it reflects what ADP does best – executing with precision for our clients while continuing to invest in defining the future of HCM. Organizations around the world trust us as their partner for their most critical workforce functions because we have the data and expertise to address the rapidly changing world of work. AI is adding new layers of complexity to our clients' work, and we are well into building the capabilities to meet that moment. We are primed to capture and harness the significant opportunity ahead for the HCM industry."
Peter Hadley
"Our third quarter results came in ahead of our expectations across revenue growth, adjusted EBIT margin, and adjusted EPS," “ADP has the financial strength and scale to invest with confidence in AI capabilities across our products, service delivery, and sales organization to fuel our future growth, while continuing to deliver on our financial commitments. Our updated fiscal 2026 guidance reflects stronger revenue and earnings growth."
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