Analyst Consensus ?
ConsensusHold36 ratings
Bullish822.2%
Neutral2363.9%
Bearish513.9%
Automatic Data Processing, Inc. · ADP · FY2026 Q2 · Calendar Q1 2026
ADP Raises FY2026 Outlook as AI-Enabled HCM Gains Traction
ADP’s Q2 analysis supports a constructive operating trajectory: resilient HCM demand, strong bookings, AI-enabled product adoption and international wins were accompanied by a raised FY2026 outlook. The main counterweights are modest PEO growth, lower international margins and dependence on float and execution for further margin expansion.
Reported Before market openNASDAQTechnology
$104.65B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$2.62
Consensus $2.57
EPS surprise
+1.9%
Reported versus consensus
Reported revenue
$5.36B
Consensus $5.34B
Revenue surprise
+0.4%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
-1.5%
Event window
SPY move
-0.0%
Same window
Abnormal move
-1.5%
Stock minus SPY
Volume
2.0×
Versus trailing sessions
Subsequent drift
-12.9%
Up to 20 sessions
ADPSPY benchmark
Ask FN2 about ADP FY2026 Q2
Transcript, numbers and history already loaded
Why did ADP fall 1.5% after beating EPS estimates in FY2026 Q2?What changed in ADP's guidance and outlook in FY2026 Q2?Give me the bull and bear case for ADP after FY2026 Q2 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Compared with the prior quarter, management’s guidance sentiment moved from maintained to raised. The current analysis adds a major European bank win, early Workforce Now NextGen adoption, a pooled employer plan and the planned embedding of Fiserv Cash Flow Central in RUN; PEO growth remained modest.
Guidance delta
Raised: FY2026 revenue growth is expected at approximately 6%, with adjusted EPS growth of 9%–10%.
Key takeaways
- Q2 results exceeded expectations, with 6% revenue growth and margin expansion.
- New-business bookings, international wins and AI-enhanced HCM platforms supported the quarter.
- Management raised its FY2026 outlook to approximately 6% revenue growth and 9%–10% adjusted EPS growth.
- PEO growth remained modest, while new products and sales investments were emphasized.
Management priorities
- Roll out ADP Workforce Suite across payroll and HCM platforms.
- Expand ADP Assist AI agents across payroll, tax and HR.
- Embed third-party solutions, including Fiserv Cash Flow Central, into the platform.
- Invest in sales tools, AI and headcount to support PEO and Employer Services growth.
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Try FN2 freeEarnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$261.8Current
$214Low
$261.62Average
$315High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Sep 30, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Cantor Fitzgerald | Overweight | Overweight | Maintain | Aug 5, 2026 |
| Wells Fargo | Equal Weight | Equal Weight | Maintain | Jul 30, 2026 |
| Stifel | Hold | Hold | Maintain | Jul 30, 2026 |
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | Jul 30, 2026 |
| Guggenheim | Buy | Buy | Maintain | Jul 30, 2026 |
| Citigroup | Neutral | Neutral | Maintain | Jul 30, 2026 |
| UBS | Neutral | Neutral | Maintain | Jul 22, 2026 |
| TD Cowen | Hold | Hold | Maintain | Jul 6, 2026 |
| Argus Research | Buy | Buy | Maintain | May 5, 2026 |
| JP Morgan | Underweight | Underweight | Maintain | Jan 29, 2026 |
| Jefferies | Underperform | Hold | Downgrade | Dec 16, 2025 |
| Mizuho | Outperform | Outperform | Maintain | Jun 13, 2025 |
| RBC Capital | Sector Perform | Sector Perform | Maintain | Jun 5, 2025 |
| TD Securities | Hold | Hold | Maintain | May 21, 2025 |
| Barclays | Overweight | Overweight | Maintain | Feb 3, 2025 |
| B of A Securities | Neutral | Neutral | Maintain | Aug 1, 2024 |
| Evercore ISI Group | Underperform | Underperform | Maintain | Mar 26, 2024 |
| Wolfe Research | Peer Perform | Underperform | Upgrade | Jan 4, 2024 |
| Deutsche Bank | Hold | Hold | Maintain | Apr 27, 2023 |
| Baird | Neutral | Neutral | Maintain | Apr 27, 2023 |
| BMO Capital | Market Perform | Market Perform | Maintain | Oct 28, 2021 |
| Credit Suisse | Neutral | Outperform | Downgrade | Aug 16, 2021 |
| Cowen & Co. | Market Perform | Outperform | Downgrade | Sep 21, 2020 |
| Goldman Sachs | Sell | Sell | Maintain | Jul 14, 2020 |
| CFRA | Hold | Hold | Maintain | Apr 29, 2020 |
| MoffettNathanson | Neutral | Buy | Downgrade | Jan 7, 2020 |
| Bank of America | Neutral | Buy | Downgrade | Sep 11, 2019 |
| Argus | Buy | Buy | Maintain | Aug 13, 2018 |
| Wedbush | Neutral | Neutral | Maintain | Jun 13, 2018 |
| Stifel Nicolaus | Hold | Hold | Maintain | Jun 6, 2018 |
| Bernstein | Outperform | Outperform | Maintain | Oct 31, 2017 |
| William Blair | Market Perform | Outperform | Downgrade | Jul 21, 2017 |
| Compass Point | Sell | Sell | Maintain | Apr 15, 2016 |
| Sterne Agee CRT | Neutral | Neutral | Maintain | Dec 17, 2015 |
| Raymond James | Outperform | Outperform | Maintain | Aug 1, 2014 |
| Susquehanna | Neutral | Positive | Downgrade | Aug 2, 2013 |
Named analyst price targets
Upside is calculated against the persisted current price $261.8. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Cantor Fitzgerald | Analyst unavailable | $310 | $272.41 | +18.4% | Aug 3, 2026 |
| Morgan Stanley | Analyst unavailable | $286 | $273.37 | +9.2% | Jul 30, 2026 |
| Guggenheim | Analyst unavailable | $300 | $273.37 | +14.6% | Jul 30, 2026 |
| Jefferies | Analyst unavailable | $225 | $276.08 | -14.1% | Jul 29, 2026 |
| Cantor Fitzgerald | Ramsey El-Assal | $294 | $243.24 | +12.3% | Jul 22, 2026 |
| Cantor Fitzgerald | Analyst unavailable | $295 | $246.22 | +12.7% | Jul 22, 2026 |
| UBS | Analyst unavailable | $270 | $246.22 | +3.1% | Jul 22, 2026 |
| Wells Fargo | Jason Kupferberg | $248 | $241.37 | -5.3% | Jul 9, 2026 |
| Stifel Nicolaus | Analyst unavailable | $260 | $245.6 | -0.7% | Jul 8, 2026 |
| Morgan Stanley | Analyst unavailable | $240 | $213 | -8.3% | May 10, 2026 |
| Argus Research | Analyst unavailable | $240 | $209.14 | -8.3% | May 5, 2026 |
| Robert W. Baird | Analyst unavailable | $270 | $215.06 | +3.1% | Apr 30, 2026 |
| Jefferies | Analyst unavailable | $190 | $215.06 | -27.4% | Apr 29, 2026 |
| Cantor Fitzgerald | Analyst unavailable | $244 | $204.24 | -6.8% | Apr 21, 2026 |
| Wells Fargo | Analyst unavailable | $214 | $201.25 | -18.3% | Mar 27, 2026 |
| Stifel Nicolaus | David Grossman | $270 | $231.36 | +3.1% | Feb 9, 2026 |
| BMO Capital | Daniel Jester | $281 | $249.06 | +7.3% | Jan 29, 2026 |
| Stifel Nicolaus | David Grossman | $280 | $250.69 | +7.0% | Jan 29, 2026 |
| Morgan Stanley | James Faucette | $274 | $250.69 | +4.7% | Jan 29, 2026 |
| Wells Fargo | Analyst unavailable | $262 | $250.69 | +0.1% | Jan 29, 2026 |
| Cantor Fitzgerald | Analyst unavailable | $306 | $258.17 | +16.9% | Jan 26, 2026 |
| BMO Capital | Daniel Jester | $288 | $260.14 | +10.0% | Jan 16, 2026 |
| Jefferies | Samad Samana | $230 | $264.96 | -12.1% | Dec 16, 2025 |
| Stifel Nicolaus | David Grossman | $290 | $261.16 | +10.8% | Oct 30, 2025 |
| Jefferies | Analyst unavailable | $245 | $261.22 | -6.4% | Oct 29, 2025 |
| Wells Fargo | Analyst unavailable | $288 | $283.98 | +10.0% | Oct 21, 2025 |
| UBS | Analyst unavailable | $290 | $288.69 | +10.8% | Sep 16, 2025 |
| Jefferies | Analyst unavailable | $315 | $310.94 | +20.3% | Jul 30, 2025 |
| UBS | Kevin McVeigh | $315 | $306.82 | +20.3% | Jun 13, 2025 |
| Jefferies | Samad Samana | $305 | $300.57 | +16.5% | Jan 29, 2025 |
| RBC Capital | Ashish Sabadra | $315 | $290.24 | +20.3% | Oct 31, 2024 |
| Bank of America Securities | Jason Kupferberg | $281 | $285.16 | +7.3% | Oct 4, 2024 |
| Bank of America Securities | Jason Kupferberg | $267 | $262.62 | +2.0% | Aug 1, 2024 |
| RBC Capital | Ashish Sabadra | $267 | $252.98 | +2.0% | Sep 5, 2023 |
| Barclays | Analyst unavailable | $257 | $218.18 | -1.8% | May 2, 2022 |
| Citigroup | Analyst unavailable | $230 | $218.18 | -12.1% | May 2, 2022 |
| Mizuho Securities | Dan Dolev | $250 | $218.18 | -4.5% | May 2, 2022 |
| Stifel Nicolaus | David Grossman | $238 | $212.46 | -9.1% | Mar 16, 2022 |
| BMO Capital | Jeffrey Silber | $220 | $233.04 | -16.0% | Nov 16, 2021 |
| J.P. Morgan | Tien Tsin Huang | $224 | $211.82 | -14.4% | Aug 17, 2021 |
| Credit Suisse | Kevin Mcveigh | $215 | $213.56 | -17.9% | Aug 16, 2021 |
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Start freeCompany context
Snapshot as of publicationAutomatic Data Processing, Inc. (ADP) is a global provider of cloud-based solutions designed for human capital management (HCM). The company organizes its operations into two primary segments: Employer Services and Professional Employer Organization (PEO). Through its Employer Services division, ADP delivers strategic, cloud-powered platforms and comprehensive human resources (HR) outsourcing.…
Historical context
All ADP earningsTechnology peers this season
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| SAIL SailPoint, Inc. | FY2027 Q2 · Calendar Q3 2026 | +13.8% | -1.2% | SailPoint pairs 25% ARR growth with accelerating AI-driven adoption |
| CIEN Ciena Corporation | FY2026 Q3 · Calendar Q3 2026 | +22.0% | -10.4% | Ciena raises outlook as AI networking demand lifts backlog |
| DOCU DocuSign, Inc. | FY2027 Q2 · Calendar Q3 2026 | +6.4% | +3.7% | DocuSign Q2 FY27: IAM momentum supports a raised outlook |
Latest beats and misses
Who reports nextBeat on EPS
- COSTFY2026 Q4 · September 24, 2026+3.2% EPS+2.9% move
- SNXFY2026 Q3 · September 24, 2026+20.9% EPS-9.9% move
- DRIFY2027 Q1 · September 24, 20260.0% EPS-3.0% move
- CTASFY2027 Q1 · September 23, 2026+3.0% EPS-3.4% move
- PAYXFY2027 Q1 · September 23, 2026+1.5% EPS-8.8% move
- GISFY2027 Q1 · September 23, 2026+4.6% EPS+1.0% move
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-09-30T00:41:02.318492+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-09-30T00:41:02.315625+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-09-30. For educational purposes only; not investment advice.