ADP to Report Q2 Earnings: Here's What Investors Should Know

Core Viewpoint - ADP is set to release its second-quarter fiscal 2026 results on January 28, with expectations of solid revenue growth and earnings performance [1][9]. Group 1: Revenue Expectations - The Zacks Consensus Estimate for ADP's total revenue is $5.4 billion, reflecting a year-over-year growth of 6.7% [2][9]. - Employer Services revenues are projected at $3.6 billion, indicating a 5% increase compared to the same quarter last year, driven by strong business bookings [2][9]. - For Professional Employer Organization (PEO) services, revenues are estimated at $1.8 billion, suggesting a 6% year-over-year growth, supported by consistent increases in new business bookings [3]. Group 2: Earnings Projections - The consensus estimate for earnings per share (EPS) is $2.58, which represents a year-over-year growth of 9.8% [4][9]. - Interest on funds held for clients is expected to generate $310 million, indicating a 14% increase from the previous year, attributed to higher client fund balance growth [3][9]. Group 3: Earnings Prediction Model - The current model does not predict a definitive earnings beat for ADP, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [5].