Automatic Data Processing Reports Strong Q2 Earnings, Boosts Share Buyback Program to $6 Billion
ADP is trading near its 52-week low of $244.44 (1.3% above the low).
Summary
Automatic Data Processing reported robust second-quarter fiscal 2026 results with double-digit earnings growth and announced a new $6 billion share repurchase authorization, replacing the previous program.
Key Events · Earnings and Guidance · ADP
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Strong Q2 Fiscal 2026 Financial Performance
Total revenues increased 6% year-over-year to $5.36 billion, net earnings grew 10% to $1.06 billion, and diluted EPS rose 11% to $2.62 for the three months ended December 31, 2025.
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Expanded Share Repurchase Program
The Board of Directors authorized a new $6 billion common stock repurchase program, which replaces the prior $5 billion authorization from November 2022. This is a significant capital allocation event.
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Increased Shareholder Returns
The company returned $2.1 billion to shareholders in the first six months of fiscal 2026, comprising $1.3 billion in dividends and $0.9 billion in share repurchases.
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Solid Balance Sheet and Liquidity
ADP maintains a strong financial condition with significant cash flows, ample liquidity, and committed credit facilities to meet operating, investing, and financing activities.
Analysis · ADP · Technology
Automatic Data Processing delivered robust second-quarter fiscal 2026 results, demonstrating solid operational performance with notable revenue and earnings growth. The company's ability to expand its EBIT margin while increasing investments in R&D and sales indicates efficient management and a strong competitive position. The announcement of a new $6 billion share repurchase authorization, replacing the previous program, signals strong confidence from management in the company's valuation and future cash flow generation, especially as the stock trades near its 52-week lows. This substantial capital return commitment is a significant positive for shareholders and underscores the company's financial strength and commitment to enhancing shareholder value.
How filings like this one have moved
In the 30 days to Sep 13, 2026, 35.6% of the 1216 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.43%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, ADP was trading at $247.69 on NASDAQ in the Technology sector, with a market capitalization of approximately $99.5B. The 52-week trading range was $244.44 to $329.93. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.