Automatic Data Processing (ADP) Q2 Earnings Top Estimates

Core Insights - Automatic Data Processing (ADP) reported quarterly earnings of $2.62 per share, exceeding the Zacks Consensus Estimate of $2.58 per share, and up from $2.35 per share a year ago, representing an earnings surprise of +1.62% [1] - The company posted revenues of $5.36 billion for the quarter ended December 2025, which was slightly below the Zacks Consensus Estimate by 0.47%, but an increase from $5.05 billion year-over-year [2] - ADP has surpassed consensus EPS estimates in all four of the last quarters and has topped revenue estimates three times during the same period [2] Earnings Outlook - The future performance of ADP's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's price movement based on the recent earnings numbers and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $3.31 on revenues of $5.84 billion, and for the current fiscal year, it is $10.93 on revenues of $21.8 billion [7] Industry Context - The Internet - Software industry, to which ADP belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]