ADP

It has been about a month since the last earnings report for Match Group (MTCH). Shares have added about 11.2% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Match Group due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Match Group Inc. before we dive into how investors and analysts have reacted as of late. Match Group reported second-quarter 2026 earnings of 92 cents per share, missing the Zacks Consensus Estimate by 5.15%.Revenues were $853 million, down 1% year over year, and lagging the Zacks Consensus Estimate of $856 million by 0.34%. The quarter reflected improving engagement trends at Tinder and continued expansion at Hinge. The company’s key operating metrics showed mixed momentum, with total payers declining 6% year over year to 13.3 million, while revenue per payer (RPP) increased 6% to $21.13. Tinder’s user trends improved, while Hinge continued to deliver strong growth through product innovation and international expansion. Tinder direct revenues were $457.5 million in the second quarter, down 1% year over year and down 2% on a foreign exchange-neutral basis.Payers declined 5% to 8.5 million, while RPP increased 4% to $17.90. Adjusted EBITDA was $233 million, down 5% year over year, with a 50% margin.The company continued investing in Tinder’s product turnaround. Management highlighted improvements in recommendation algorithms, Trust and Safety initiatives, and new features designed to create lower-pressure ways for users to connect. Tinder’s daily active users declined 4% year over year in the quarter, representing the best performance in 10 quarters. Hinge remained a major growth contributor, with direct revenues rising 22% year over year to $203.5 million. Revenues increased 20% on a foreign exchange-neutral basis, supported by a 17% increase in payers to 2 million and a 4% rise in RPP to $33.11.Match Group noted that Hinge’s global monthly active users increased 13% year over year, driven by expansion markets. The company continued broadening Hinge’s international presence, entering six new European countries and four additional countries in Latin America during the quarter.The business is still expected to reach $1 billion in revenues in 2027, with growth expected to come from product innovation, international expansion and additional monetization opportunities. Everyone Everywhere (E&E) direct revenues were $178.9 million, down 17% year over year and down 17% on a foreign exchange-neutral basis. Payers declined 21% to 2.7 million, while RPP increased 4% to $22.24. Adjusted EBITDA was $54 million, up 69%, and at a 30% margin.The company continued restructuring the portfolio, with E&E now including Azar and Pairs. Management said the segment is benefiting from shared capabilities across Match Group, including Trust and Safety, recommendation algorithms, centralized marketing and consumer research.The company expects E&E revenue trends to remain pressured by the Azar app redesign while maintaining a focus on improving the long-term health of the portfolio. Total operating expenses declined 9% year over year to $608 million in the second quarter. Cost of revenues decreased 16% year over year, helped by alternative payment savings, while general and administrative expenses declined 22%, driven by lower headcount-related costs and legal expenses.Adjusted EBITDA was $331 million, up 14% year over year, representing an adjusted EBITDA margin of 39%, which expanded approximately 500 basis points from 33% in the year-ago quarter. As of June 30, 2026, Match Group had cash, cash equivalents and short-term investments of $584 million compared with $1.02 billion as of March 31, 2026. The decline primarily reflected the use of $424 million in cash to repay the company’s 0.875% exchangeable senior notes due in June 2026.Long-term debt, including current maturities, stood at $3.6 billion as of June 30, 2026. Match Group ended the quarter with trailing twelve-month gross leverage of 2.7x and net leverage of 2.2x. The company’s $500 million revolving credit facility remained undrawn as of June 30, 2026.Match Group generated $370 million in operating cash flow and $353 million in free cash flow in the second quarter. It also repurchased 7.3 million shares for $245 million and paid $91 million in dividends during the period. For the third quarter of 2026, Match Group expects revenues of $885 million to $895 million, representing a year-over-year decline of 2% to 3%. Adjusted EBITDA is projected at $330 million to $335 million, implying a 10% year-over-year increase at the midpoint.For full-year 2026, management expects revenues to be near the midpoint of its previously issued guidance range on an as-reported basis and at or above the midpoint on a foreign exchange-neutral basis. Adjusted EBITDA is expected to be at or above the high end of prior guidance, with margin expected to exceed the company’s 37.5% target.The company expects Tinder direct revenues to decline in the low-single-digit percentage range for the year, an improvement from its previous outlook. It also expects free cash flow to be at the high end of its prior guidance range. In the past month, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 11.67% due to these changes. Currently, Match Group has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of B on the value side, putting it in the top 40% for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Match Group has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Match Group belongs to the Zacks Internet - Software industry. Another stock from the same industry, Automatic Data Processing (ADP), has gained 4.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. ADP reported revenues of $5.47 billion in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $2.64 for the same period compares with $2.26 a year ago. ADP is expected to post earnings of $2.78 per share for the current quarter, representing a year-over-year change of +11.7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for ADP. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Match Group Inc. (MTCH) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Palantir Technologies Inc. (PLTR). Shares have added about 10.6% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Palantir Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. Palantir Technologies delivered another exceptional quarter, with second-quarter 2026 results comfortably surpassing Wall Street expectations. Revenues reached $1.94 billion, increasing 92.8% year over year and 19% sequentially, while beating the Zacks Consensus Estimate of $1.81 billion by 7.2%. Earnings per share came in at 41 cents, up from 16 cents a year ago, representing 156.3% year-over-year growth, while rising from the previous quarter's 34 cents (20.6% sequential growth). EPS also exceeded the consensus estimate of 35 cents by 17.1%. Commercial revenue climbed to $945 million, increasing 109.7% year over year and accounting for nearly 49% of total quarterly revenue. Government revenue reached $990 million, rising 79% from the prior-year quarter and representing about 51% of total sales. The company's U.S. operations remained the biggest contributor to growth. U.S. revenues totaled $1.57 billion, representing more than 81% of company-wide revenue, reflecting exceptionally strong customer demand for enterprise AI deployments. Large contract activity remained particularly robust. During the quarter, the company closed 220 deals worth at least $1 million, reflecting increasing adoption of its Artificial Intelligence Platform across commercial enterprises and government agencies. The company's rapid revenue expansion was accompanied by outstanding profitability. Adjusted gross margin remained exceptionally high at 86%, highlighting the scalability of Palantir's software platform. Adjusted operating margin expanded to 62%, among the highest across enterprise software companies. Cash generation remained equally impressive. Cash from operations totaled $1.216 billion, while adjusted free cash flow reached approximately $1.22 billion during the quarter. These figures translate into an adjusted free cash flow margin of roughly 63%, illustrating Palantir's ability to convert revenue growth into substantial cash generation. The company ended the quarter with $9.2 billion in cash, cash equivalents, and short-term U.S. Treasury securities, providing considerable financial flexibility to fund product development and future expansion initiatives. While management acknowledged that gross margin experienced modest pressure from assuming cloud-hosting responsibilities for a government customer, executives indicated that the move should improve implementation speed and strengthen long-term customer relationships. Beyond reported revenue, forward-looking indicators also strengthened. Total contract value bookings reached $3.4 billion, reflecting another record quarter for customer commitments. Net dollar retention stood at 157%, demonstrating that existing customers continue expanding their usage significantly after initial deployments. Total remaining deal value increased to $13.1 billion, while remaining performance obligations reached $4.9 billion, providing strong visibility into future revenue growth. These metrics suggest that Palantir's current momentum is not solely driven by recent contract wins but is increasingly supported by long-term customer expansion. Palantir's product strategy increasingly revolves around enabling enterprises to deploy AI models while maintaining full ownership over their data, workflows and operational knowledge. Management emphasized that customers increasingly prioritize flexibility, allowing organizations to benchmark different AI models and replace them whenever necessary without becoming dependent on a single provider. This positioning appears to resonate strongly with enterprises seeking greater control over rapidly evolving AI technologies. Rather than competing directly on foundation models, Palantir continues focusing on the software layer that integrates, manages and operationalizes AI across organizations. Management also highlighted growing demand from customers that initially adopted Foundry but are now expanding toward broader AI deployments across multiple business functions. Perhaps the most significant takeaway from the quarter was management's increased confidence in future growth. For the third quarter of 2026, Palantir expects revenues between $2.16 billion and $2.164 billion, implying another sequential increase of roughly 12% from the second quarter. Adjusted income from operations is projected between $1.292 billion and $1.296 billion. Management also substantially increased full-year guidance. Revenues are now expected between $8.15 billion and $8.158 billion, up from the previous outlook of $7.65$7.662 billion. The midpoint of the guidance therefore increased by nearly $500 million, representing one of the company's largest upward revisions. The company also lifted its U.S. commercial revenue forecast to more than $3.424 billion compared with the earlier expectation exceeding $3.224 billion. Adjusted operating income guidance increased to $4.889-$4.897 billion, while adjusted free cash flow guidance rose to $4.5-$4.7 billion, reinforcing management's confidence that profitability will continue improving alongside revenue growth. In the past month, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 10.74% due to these changes. Currently, Palantir Technologies has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a score of F on the value side, putting it in the fifth quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Palantir Technologies has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Palantir Technologies belongs to the Zacks Internet - Software industry. Another stock from the same industry, Automatic Data Processing (ADP), has gained 4.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. ADP reported revenues of $5.47 billion in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $2.64 for the same period compares with $2.26 a year ago. For the current quarter, ADP is expected to post earnings of $2.78 per share, indicating a change of +11.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. ADP has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Looking back on data & business process services stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including ADP (NASDAQ:ADP) and its peers. A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could see increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area. The 9 data & business process services stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 1.3% below. Thankfully, share prices of the companies have been resilient as they are up 6.4% on average since the latest earnings results. Processing one out of every six paychecks in the United States, ADP (NASDAQ:ADP) provides cloud-based human capital management solutions that help businesses manage payroll, benefits, talent acquisition, and HR administration. ADP reported revenues of $5.47 billion, up 6.8% year on year. This print exceeded analysts’ expectations by 0.7%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates. Interestingly, the stock is up 7.5% since reporting and currently trades at $283.90. Is now the time to buy ADP? Access our full analysis of the earnings results here, it’s free. Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ:EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions. EXL reported revenues of $594.8 million, up 15.6% year on year, outperforming analysts’ expectations by 3.5%. The business had a very strong quarter with full-year revenue guidance beating analysts’ expectations and a beat of analysts’ EPS estimates. EXL delivered the biggest analyst estimate beat and highest full-year guidance raise of the whole group. The market seems happy with the results as the stock is up 22.6% since reporting. It currently trades at $37.42. Is now the time to buy EXL? Access our full analysis of the earnings results here, it’s free. With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ:CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K. CoStar reported revenues of $925 million, up 18.4% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations and full-year EPS guidance in line with analysts’ estimates. CoStar delivered the weakest guidance update and weakest full-year guidance update among its peers. Interestingly, the stock is up 6.4% since the results and currently trades at $32.29. Read our full analysis of CoStar’s results here. Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation (NYSE:FICO) develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States. Fair Isaac Corporation reported revenues of $674.2 million, up 25.7% year on year. This number missed analysts’ expectations by 1.5%. It was a slower quarter as it also logged full-year revenue guidance slightly missing analysts’ expectations. Fair Isaac Corporation delivered the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. The stock is down 19.7% since reporting and currently trades at $1,102. Read our full, actionable report on Fair Isaac Corporation here, it’s free. One of the three major credit bureaus in the United States alongside Equifax and Experian, TransUnion (NYSE:TRU) is a global information and insights company that provides credit reports, fraud prevention tools, and data analytics to help businesses make decisions and consumers manage their financial health. TransUnion reported revenues of $1.31 billion, up 14.9% year on year. This print topped analysts’ expectations by 1.8%. More broadly, it was a mixed quarter as its performance in some other areas of the business was disappointing. TransUnion achieved the highest guidance raise in the group. The stock is up 8.3% since reporting and currently trades at $83.67. Read our full, actionable report on TransUnion here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

A month has gone by since the last earnings report for Automatic Data Processing (ADP). Shares have added about 7.9% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is ADP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers. ADP has reported fourth-quarter fiscal 2026 adjusted earnings of $2.64 per share, beating the Zacks Consensus Estimate of $2.59 by 1.9%. The metric increased 17% from the year-ago quarter. Revenues of $5.47 billion surpassed the consensus mark of $5.42 billion by 0.9% and rose 7% year over year. Results benefited from broad-based segment growth, stronger client funds income and operating productivity. Employer Services client retention remained strong at 92.1% for the year. Employer Services revenues increased 7% year over year to $3.7 billion in the quarter. Organic constant-currency growth was 6%, while U.S. pays per control increased 1%. The segment also benefited from an 8% increase in average client funds balances. The average yield on those balances rose to 3.5% from 3.2% in the prior-year period, supporting higher interest-related revenues. Employer Services’ margin improved 90 basis points to 34.4%. Management attributed the increase to operating productivity gains and the contribution from higher client funds interest revenues. For fiscal 2026, Employer Services business bookings increased 6% to $2.2 billion. Client satisfaction scores reached record highs, while the number of clients live on ADP Lyric HCM increased 94%. PEO Services revenues advanced 7% year over year to $1.78 billion. Revenues excluding zero-margin benefits pass-throughs increased 5%, while average worksite employees rose 2% to about 775,000. The segment margin fell 100 basis points to 12.2%. Faster growth in zero-margin pass-through revenues, along with higher workers' compensation and selling expenses, weighed on profitability. Adjusted EBIT increased 13% year over year to $1.37 billion. The adjusted EBIT margin expanded 140 basis points to 25.1%, showing that ADP converted its revenue growth into stronger operating leverage. Adjusted net earnings rose 14% to $1.05 billion. On a GAAP basis, net earnings increased 7% to $978.6 million, while earnings per share rose 10% to $2.45. Interest on funds held for clients increased 15% year over year to $355.4 million. The net impact from the client funds strategy rose 24% to $355.5 million, reflecting higher portfolio income and a more favorable financing spread. For fiscal 2026, average client funds balances were $40.4 billion, up 7% year over year. The average portfolio yield increased 20 basis points to 3.4%, while total client funds interest revenues reached $1.355 billion. ADP generated $5.44 billion in operating cash flow during fiscal 2026, up from $4.94 billion a year earlier. The company used $2.08 billion for share repurchases and paid out $2.63 billion in dividends. Cash and cash equivalents totaled $4.23 billion as of June 30, 2026. Long-term debt stood at $4.96 billion, while funds held for clients were $43.96 billion against client funds obligations of $44.42 billion. ADP expects client funds interest revenues of $1.54-$1.56 billion in fiscal 2027. The outlook assumes 3-4% growth in average client funds balances and an average portfolio yield of 3.7%. The company also projects a total contribution of $1.55-$1.57 billion from its client funds extended investment strategy. Management said that AI tools embedded across products, services and sales are enhancing quality and productivity as ADP enters the new fiscal year. For fiscal 2027, ADP expects year-over-year consolidated revenue growth of 5-6%. The adjusted EBIT margin is projected to expand 70-90 basis points, while adjusted diluted earnings per share are expected to grow 9-11%. Employer Services revenues are forecast to rise 5-6%, with business booking growth of 4-7%. PEO Services revenues are expected to increase 5-7%, while average worksite employees are projected to grow 2%. In the past month, investors have witnessed a upward trend in estimates review. Currently, ADP has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ADP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. ADP is part of the Zacks Internet - Software industry. Over the past month, AppFolio (APPF), a stock from the same industry, has gained 31.8%. The company reported its results for the quarter ended June 2026 more than a month ago. AppFolio reported revenues of $281.12 million in the last reported quarter, representing a year-over-year change of +19.3%. EPS of $1.71 for the same period compares with $1.38 a year ago. AppFolio is expected to post earnings of $1.78 per share for the current quarter, representing a year-over-year change of +35.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.5%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for AppFolio. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report AppFolio, Inc. (APPF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Accenture (NYSE:ACN) and Automatic Data Processing (NASDAQ:ADP) have been consistent performers for many years. Both companies’ annual revenue continues to grow, although at single-digit rates. As artificial intelligence (AI) becomes an opportunity for these companies to expand their revenue potential through new services, investors should monitor how this technology affects their revenue growth going forward. Accenture primarily generates revenue by delivering a wide array of strategy, consulting, technology, and operations services worldwide. While expanding its cybersecurity portfolio through multiple acquisitions and forming new joint partnerships, it reported an approximately 13% net income margin for the quarter ended May 31, 2026. Automatic Data Processing primarily earns revenue by providing cloud-based human capital management and payroll outsourcing solutions. As it launched a new Canadian wage tracking tool and experienced no major adverse events, it generated an approximately 18% net income margin for the quarter ended June 30, 2026. Revenue is the most fundamental measure of a company’s performance. Changes over time can reveal how easily a company can expand, reach new customers, and defend its competitive position in the industry. Data source: Company filings. Data as of July 30, 2026. Accenture is experiencing significant traction for AI services. It is targeting a more than $240 billion addressable market with the launch of Accenture Edge, which offers cybersecurity solutions to mid-sized organizations. Cybersecurity is growing faster than the rest of the business, and management plans to keep investing to support that growth. Automatic Data Processing is also seeing strong demand for The Zone, its AI-powered service platform that works alongside ADP Assist, the company’s AI-powered workflow platform. ADP Assist has over 3 million unique active users, underscoring how the company continues to find growth opportunities even as AI reshapes the corporate workplace. Still, as both companies see traction in AI-related services, they are growing at similar revenue growth rates as before. AI appears to be an extension of their continued growth and not an accelerant yet. This may not allow either company to outpace the other, keeping their relative revenue gaps roughly even for the foreseeable future. Investors will want to continue to monitor how AI-related services influence their growth trajectory for signs of competitive strength or weakness amid rapid change in the corporate landscape. Before you buy stock in Accenture Plc, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Accenture Plc wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $396,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,300,820!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 5, 2026. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Accenture Plc. The Motley Fool recommends the following options: long January 2028 $260 calls on Accenture Plc and short January 2028 $280 calls on Accenture Plc. The Motley Fool has a disclosure policy. Accenture vs. Automatic Data Processing: Comparing Quarterly Revenue Trends was originally published by The Motley Fool

Avis Budget Group, Inc. CAR reported dismal second-quarter 2026 results. CAR’s earnings of 98 cents per share missed the Zacks Consensus Estimate of $2.16 by 54.6%. Earnings improved sharply from 10 cents in the year-ago quarter. Revenues declined 1.3% year over year to $3 billion, missing the consensus estimate of $3.08 billion by 2.8%. Lower rental days weighed on the top line, while disciplined fleet reductions helped lift total vehicle utilization to a second-quarter record of 72.6%. Avis Budget Group, Inc. price-consensus-eps-surprise-chart | Avis Budget Group, Inc. Quote The lower-than-expected earnings and revenue results dragged the stock down 16.5% since the earnings release on July 28. Avis Budget generated net income of $63 million compared with $5 million in the prior-year quarter. Net income attributable to the company was $35 million, up from $4 million a year earlier. Adjusted EBITDA increased 3.2% year over year to $286 million. The improvement came despite lower revenues, reflecting reduced fleet costs, better utilization and tighter expense management. Total rental days fell 2.3% year over year to 43.91 million. The average rental fleet declined 4.9% to 664,638 vehicles as management accelerated vehicle dispositions in response to weakening booking trends. Revenues per day increased 1% to $68.29. Excluding currency effects, revenues per day were $67.84, up slightly from $67.62 in the year-ago quarter. Management prioritized longer-duration rentals, which carried lower daily rates but offered better transaction economics and reduced handling costs. Americas revenues declined 1.9% year over year to $2.29 billion. Rental days decreased 2.1% to 32.60 million, while the average fleet contracted 5.4% to 489,192 vehicles. Americas adjusted EBITDA rose 7.7% to $237 million. Vehicle utilization improved 2.5 percentage points to a record 73.2%, helping offset lower volumes. Revenue per day, excluding currency effects, inched up to $70.22 from $70.03. International revenues were $710 million, nearly flat year over year. Excluding exchange-rate effects, revenues declined 2.5% as rental days fell 2.9% to 11.31 million. Adjusted EBITDA decreased 11% to $73 million. Management cited weaker commercial demand, lower inbound travel and increased industry fleet supply in several European markets. International revenues per day rose 3.4% as reported, but inched up 0.4% excluding currency effects. Vehicle depreciation and lease charges declined 8.3% year over year to $583 million. Total per-unit fleet costs fell 3.6% to $292 per month and decreased 4.3% to $290 excluding currency effects. Operating expenses remained flat at $1.53 billion. Selling, general and administrative expenses declined 2.8% to $385 million, while vehicle interest expenses increased slightly to $232 million. Corporate interest expenses decreased to $108 million from $110 million. CAR ended June with $558 million in cash and cash equivalents. Available liquidity was approximately $1 billion, with an additional $1.9 billion in fleet funding capacity. During the quarter, the company issued $300 million of senior notes due in 2031 and used the proceeds to reduce notes due in 2027. It also refinanced its $2-billion revolving credit facility, extending the maturity to June 2031. Net corporate leverage stood at 7.4 times, down one turn from the end of 2025. Avis Budget reiterated its full-year adjusted EBITDA guidance of $850 million to $1 billion. Management expects to reduce leverage by at least one full turn by the end of 2026. For the third quarter, the company expects the Americas fleet to remain down by a mid-single-digit percentage. Stronger utilization should partly offset the fleet reduction, while revenues per day are projected to remain roughly flat year over year. Management expects year-over-year adjusted EBITDA growth despite continued pressure on rental volumes. Avis Budget carries a Zacks Rank #5 (Strong Sell) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Verisk VRSK reported second-quarter 2026 diluted adjusted earnings of $1.98 per share, beating the Zacks Consensus Estimate of $1.94 by 2.1%. The figure increased 5.3% from the year-ago quarter. Revenues of $806.3 million topped the consensus mark of $802.4 million by 0.5% and rose 4.3% year over year. ADP ADP posted fourth-quarter fiscal 2026 adjusted earnings of $2.64 per share, beating the Zacks Consensus Estimate of $2.59 by 1.9%. The metric increased 17% from the year-ago quarter. Revenues of $5.47 billion surpassed the consensus mark of $5.42 billion by 0.9% and rose 7% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ADP ADP closed fiscal 2026 with fourth-quarter earnings and revenues above expectations, supported by higher client funds income, broad-based segment growth and productivity gains. The fiscal 2027 outlook points to another year of revenue growth, margin expansion and faster adjusted earnings growth. The key issue is whether client funds income and operating leverage can outweigh continued pressure in the Professional Employer Organization business. Adjusted earnings of $2.64 per share topped the Zacks Consensus Estimate by 1.9%. Revenues of $5.47 billion exceeded the consensus mark by 0.9% and increased 7% year over year. Automatic Data Processing, Inc. price-consensus-eps-surprise-chart | Automatic Data Processing, Inc. Quote Adjusted earnings before interest and taxes rose 13% to $1.37 billion, while the adjusted margin expanded 140 basis points to 25.1%. Higher client funds income and operational productivity helped earnings grow faster than revenues. Employer Services also posted 7% revenue growth and a 90-basis-point margin increase. Interest on funds held for clients increased 15% to $355.4 million. Average client funds balances rose 8% to $41 billion, while the average portfolio yield improved to 3.5% from 3.2% a year earlier. The net contribution from the client funds extended investment strategy increased 24%. Higher balances, improved yields and a favorable financing spread made this activity a larger earnings contributor, adding support beyond ADP’s core payroll and human capital management operations. Management expects consolidated revenues to increase 5% to 6% in fiscal 2027. Adjusted earnings per share are projected to rise 9% to 11%, with adjusted earnings before interest and taxes margin expanding another 70 to 90 basis points. Client funds remain a measurable part of that outlook. ADP forecasts $1.54 billion to $1.56 billion in client funds interest revenue, based on 3% to 4% balance growth and an average yield of about 3.7%. The company also expects Employer Services revenues to grow 5% to 6%. Professional Employer Organization Services revenues grew 7%, but the segment margin declined 100 basis points to 12.2%. Revenues excluding zero-margin benefits pass-throughs increased 5%, showing that the headline growth rate included activity that did not add margin. Workers’ compensation costs and selling expenses also weighed on profitability. That pressure matters because Paychex, Inc. PAYX also combines payroll, human resources and professional employer organization services, while Paycom Software, Inc. PAYC competes through cloud-based payroll and human capital management software. ADP’s ability to convert segment growth into profit remains an important differentiator. The quarter and outlook support a constructive operating view, but ADP currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The rating indicates that the near-term earnings estimate picture does not provide a clear enough signal for a more positive stance. The Momentum Score of B is encouraging and suggests favorable recent trading characteristics. However, the Value Score of C, Growth Score of C and VGM Score of D point to a less compelling combined profile. The mix supports a measured interpretation despite the earnings beat and fiscal 2027 growth outlook. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Paychex, Inc. (PAYX) : Free Stock Analysis Report Paycom Software, Inc. (PAYC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Automatic Data Processing, Inc. has now reported its fourth-quarter and full-year 2026 results, posting quarterly revenue of US$5,473.8 million and net income of US$978.6 million, with earnings ahead of analyst expectations. Management highlighted rapid adoption of its AI-powered HR tools, strong client retention, and plans for sizeable share repurchases under a remaining US$6.00 billion authorization as key drivers of the performance and outlook. We’ll now examine how this earnings beat, underpinned by AI-driven efficiency gains, may influence Automatic Data Processing’s broader investment narrative. Invest in the nuclear renaissance through our list of 90 elite nuclear energy infrastructure plays powering the global AI revolution. To own ADP, you generally need to believe in long term demand for outsourced, cloud based HR and payroll, and ADP’s ability to keep its platforms central to clients’ workflows. The latest earnings beat, supported by AI driven efficiencies and strong retention, reinforces that story but does not fundamentally change the key near term swing factors: how quickly AI adoption can translate into higher margins, and whether slower hiring trends will weigh on transaction based revenue. Among recent announcements, the fiscal 2027 outlook and the remaining US$6.0 billion share repurchase authorization feel most connected to this quarter’s news. Management is leaning on AI powered productivity and a flat headcount to support EBIT margin expansion guidance of 70 to 90 basis points, while signaling confidence through continued buybacks. For investors focused on catalysts, the combination of AI driven cost discipline and active capital returns is now central to how the story is framed. Yet even with these positives, investors should be aware of how slowing U.S. payroll growth and softer pay per control metrics could... Read the full narrative on Automatic Data Processing (it's free!) Automatic Data Processing's narrative projects $25.6 billion revenue and $5.5 billion earnings by 2029. This requires 5.8% yearly revenue growth and about a $1.2 billion earnings increase from $4.3 billion today. Uncover how Automatic Data Processing's forecasts yield a $257.53 fair value, a 6% downside to its current price. Some analysts were far more optimistic, assuming revenue could reach about US$25.6 billion and earnings US$5.5 billion by 2029, yet the latest results also highlight how heavy AI investment could compress margins if it fails to translate into stronger pricing or bookings, so it is worth comparing these more bullish expectations with your own view of ADP’s progress. Explore 8 other fair value estimates on Automatic Data Processing - why the stock might be worth 7% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Automatic Data Processing research is our analysis highlighting 4 key rewards that could impact your investment decision. Our free Automatic Data Processing research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Automatic Data Processing's overall financial health at a glance. Our top stock finds are flying under the radar-for now. Get in early: This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality. The future of work is here. Discover the 34 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 29 best rare earth metal stocks of the very few that mine this essential strategic resource. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ADP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]