Microsoft Outpaces ADP with Consistent Revenue Growth and AI Advantage

Microsoft's massive revenue scale and consistent growth trajectory stand out compared to Automatic Data Processing. Over eight quarters, Microsoft has shown continuous quarter-over-quarter expansion in revenue, while Automatic Data Processing experienced a more volatile pattern with periodic peaks and dips.

The software giant primarily generates revenue by selling software, cloud computing infrastructure, and personal computing devices to global customers. Its net income margin was approximately 40% for the quarter ended June 30, 2026.

Automatic Data Processing, on the other hand, earns revenue from cloud-based human resources software and specialized employer outsourcing services. Its quarterly revenue has been more inconsistent than Microsoft's, but on a year-over-year basis, it has consistently grown at a mid-single-digit rate over the past eight quarters.

The gap between Microsoft's and Automatic Data Processing's revenue continues to widen, with Microsoft reporting $90 billion in revenue for the quarter ended June 30, 2026. The software giant operates one of the leading cloud service platforms for enterprises and has millions of users of its productivity software.