Automatic Data Processing reported adjusted earnings per share of $2.62 for the second quarter of fiscal 2026, topping the consensus estimate of $2.58. Total revenues rose 6.2% year-over-year, propelled by a 5% increase in Employer Services and a 14% jump in PEO Services. The company added approximately 52,000 net new worksite employees and achieved record annualized recurring revenue of $16.3 billion, reflecting continued strength in client demand for payroll and HR outsourcing solutions.

ADP lifted its fiscal 2026 revenue growth forecast to a range of 6%–7% after the quarter’s results, citing robust bookings in mid-market and international segments. Management now expects non-GAAP operating margin expansion of 40–60 basis points for the full year, driven by operating leverage in its cloud platform and efficiencies in service delivery. The company will host its earnings call webcast today at 8:30 a.m. ET and plans to unveil updated guidance for free cash flow conversion above 90%.

Building on its 75-year data heritage, ADP launched ADP Assist, a suite of AI agents powered by insights from 42 million wage earners and 1.1 million client organizations. Persona-based agents streamline payroll variances, automate tax registrations, deliver personalized policy guidance and generate custom workforce analytics in real time. Leadership forecasts that early adopters will realize a 20% reduction in manual HR tasks and a 15% improvement in payroll accuracy within the first six months of deployment.