By Connor Hart

Automatic Data Processing said it expects to hit the high end of its outlook for the year as it logged higher profit and revenue in its fiscal second quarter, boosted by new business signings.

The payroll and workplace-administration company on Wednesday posted a profit of $1.06 billion, or $2.62 a share, for its quarter ended Dec. 31, compared with $963.2 million, or $2.35 a share, in last year's comparable period.

Stripping out certain one-time items, earnings were still $2.62 a share. Analysts surveyed by FactSet expected adjusted earnings of $2.57 a share.

Revenue increased 6.2% to $5.36 billion, just ahead of Wall Street models for $5.34 billion.

Finance chief Peter Hadley attributed the company's higher profit and revenue in part to new business bookings. The company's updated outlook reflects its confidence to deliver on financial commitments, while still making strategic investments to support long-term growth, he added.

For its fiscal 2026, ADP now expects revenue to come in at the high end of its outlook for growth of 5% to 6%. Adjusted earnings are now projected to be up 9% to 10% from last year, compared with a prior view of up 8% to 10%.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

January 28, 2026 07:21 ET (12:21 GMT)

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