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

ADP ADP is scheduled to release second-quarter fiscal 2026 results on Jan. 28, before market open.

ADP has a decent earnings surprise history, surpassing the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 2.7%.

ADP’s Q2 Expectations

The Zacks Consensus Estimate for the top line is pegged at $5.4 billion, indicating 6.7% year-over-year growth. Solid segmental growth is likely to have driven the top line.

The consensus estimate for second-quarter fiscal 2026 revenues of $3.6 billion from Employer Services hints at 5% growth from the year-ago quarter’s actual. A solid business booking is expected to have driven this segment’s revenues.

For Professional Employer Organization (“PEO”) services, the Zacks Consensus Estimate for revenues is kept at $1.8 billion, suggesting 6% year-over-year growth. A consistent increase in PEO new business bookings is anticipated to have benefited this segment’s revenues.

The consensus mark for Interest on Funds held for clients is pegged at $310 million, implying 14% growth from the year-ago quarter’s reported figure. This upsurge is expected to have been fueled by higher client fund balance growth.

The Zacks Consensus Estimate for Average Paid PEO Worksite Employees for the quarter is 762.

The consensus estimate for earnings per share is kept at $2.58, suggesting year-over-year growth of 9.8%.

What Our Model Says About ADP

Our proven model does not conclusively predict an earnings beat for ADP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

ADP has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few stocks from the broader Computer and Technology sector, which, according to our model, have the right combination of elements to beat on earnings this season.

Birkenstock Holding PLC BIRK: The Zacks Consensus Estimate for the company’s first-quarter fiscal 2026 revenues is pinned at $467.6 million, indicating a 21.2% year-over-year decline. For earnings, the consensus mark is set at 27 cents per share, implying a 42.1% upsurge from the year-ago quarter’s actual. The company beat the Zacks Consensus Estimate in the past four quarters, the average surprise being 18.8%.

BIRK has an Earnings ESP of +0.42% and a Zacks Rank #3 at present. The company is scheduled to declare its first-quarter fiscal 2026 results on Feb. 12.

V.F. Corporation VFC: The Zacks Consensus Estimate for the company’s third-quarter fiscal 2026 revenues is kept at $2.7 billion, indicating a year-over-year dip of 2.6%. For earnings, the consensus mark is pinned at 43 cents per share, suggesting a 30.7% decline from that reported in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, with an average surprise of 37.7%.

VFC currently has an Earnings ESP of +4.05% and a Zacks Rank #3. The company is scheduled to declare third-quarter fiscal 2026 results on Jan. 28.

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This article originally published on Zacks Investment Research (zacks.com).

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