Microsoft Outpaces Automatic Data Processing in Revenue Growth
Microsoft (NASDAQ: MSFT) reported a robust quarterly revenue of $90.0 billion for Q2 2026, reflecting a steady climb with an approximate 18% year-over-year increase, largely driven by a 43% rise in Azure cloud revenue. In contrast, Automatic Data Processing (NASDAQ: ADP) generated $5.5 billion in revenue during the same quarter, showing a modest 6.7% increase year-over-year.
Over the last eight quarters, Microsoft has consistently expanded its revenue at a mid-teens rate, while ADP’s growth has been more volatile, fluctuating with periodic peaks and dips. Investors are noting the widening revenue gap between the two, with Microsoft’s net income margin reported at 40%, compared to ADP’s 18% for the quarter ended June 30, 2026.
As Microsoft positions itself as a leader in AI-driven services, including over 30 million licenses for its Copilot assistant, analysts suggest that ADP may face challenges in narrowing the revenue disparity despite its new offerings, such as the Canada Pay Insights tool.
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