ADP reported strong Q2 FY2026 results with broad-based bookings growth, highlighted by record client satisfaction and strong traction for its Lyric HCM platform in the enterprise segment. The company raised its full-year revenue and EPS guidance, while modestly lowering its PEO worksite employee growth forecast. ADP raised FY2026 consolidated revenue growth outlook to ~6% and adjusted EPS growth to 9-10%, driven by strong demand and higher client funds interest revenue.
ADP reported strong Q2 FY2026 results with broad-based bookings growth, highlighted by record client satisfaction and strong traction for its Lyric HCM platform in the enterprise segment. The company raised its full-year revenue and EPS guidance, while modestly lowering its PEO worksite employee growth forecast. ADP raised FY2026 consolidated revenue growth outlook to ~6% and adjusted EPS growth to 9-10%, driven by strong demand and higher client funds interest revenue.
ADP reported strong Q2 FY2026 results with broad-based bookings growth, highlighted by record client satisfaction and strong traction for its Lyric HCM platform in the enterprise segment. The company raised its full-year revenue and EPS guidance, while modestly lowering its PEO…
ADP raised FY2026 consolidated revenue growth outlook to ~6% and adjusted EPS growth to 9-10%, driven by strong demand and higher client funds interest revenue.
Lyric HCM bookings exceeded expectations, with 70% of new business coming from new logos, including two wins with clients of more than 20,000 employees.
The PEO business saw a moderation in worksite employee growth, leading to a reduced forecast of ~2% for the year.
AI is central to ADP's technology strategy, with continued scaling of client-facing AI, including new ADP Assist payroll, HR, analytics, and tax agents. These are seen as competitive differentiators, driving product adoption and client satisfaction, though monetization is still early.
ADP raised its full-year revenue outlook and reaffirmed its margin expansion targets, driven by strong bookings, robust pipelines, and higher client funds interest income.
Management expressed confidence in solid bookings, strong pipeline, and strategic progress, while acknowledging minor softness in PEO and stable demand.
“It was also how that win came about, which was a direct reflection of the offering that we have in conjunction with our existing platforms married to now the Workforce suite that we launched.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| EPS | FY2026 | 9%–10% | 9.5% | RAISED |
| Op margin | FY2026 | 0.5%–0.7% | 0.6% | MAINTAINED |
| RevenueES | FY2026 | 6% | 6% | RAISED |
| Revenue | FY2026 | 6% | 6% | RAISED |
| RevenuePEO_EX_PASS_THROUGHS | FY2026 | 3%–5% | 4% | MAINTAINED |
| RevenuePEO | FY2026 | 5%–7% | 6% | MAINTAINED |
| UnitsWSE | FY2026 | 2% | 2% | LOWERED |
ADP's international business wins, like the 75,000-employee European bank, are driven by its integrated Workforce Suite, indicating strong demand for unified global HCM and workforce management solutions. — This signals that ADP's bundling of workforce management with core payroll is a key competitive differentiator against standalone workforce management vendors like UKG, particularly for complex multinational enterprises.
“we successfully embedded Fiserv's Cashflow Central an integrated accounts payables and receivables management solution into RUN in order to help our small business clients better manage their cash flow.”
… and HCM platforms. Clients now have the opportunity to offer their employees around the world a unified time, pay, and HR experience with best-in-class workforce management tools at their fingertips. We are already seeing benefits from our integrated approach, winning several deals in the second quarter that included the ADP Workforce Suite. We also partner with others to accelerate innovation. In December, we successfully embedded Fiserv's Cashflow Central an integrated accounts payables and receivables management solution into RUN in order to help our small business clients better manage their cash flow. The RUN powered by ADP platform brings payroll, contractor payments, bill pay, and invoicing together in one clear, connected experience. With payroll and payments in sync, our clients can do more in less time and steer their business forward confidently. AI remains central to our technology strategy, and we are moving full speed ahead to leverage it in attracting, serving, and retaining our clients. We continue to scale the usage and capabilities of our client-facing AI, including the launch of new ADP Assist payroll, HR, analytics, and tax agents that apply advanced …