AUTOMATIC DATA PROCESSING INCADP
AUTOMATIC DATA PROCESSING INC Financial Overview 2021–2025
ADP monetizes the billions of dollars sitting in transit between employers and employees, transforming client funds into a high-margin revenue stream that acts as a natural hedge against rate volatility. This capital-efficient engine supports a core thesis built on extreme stickiness, evidenced by a 92.1% client retention rate in FY2025. The company’s long-term financial arc is defined by steady, defensive compounding, with total revenue growing from $15.0 billion in FY2021 to $20.56 billion in FY2025.
Operational discipline has allowed ADP to widen profitability while funding strategic M&A like WorkForce Software. In FY2025, the company expanded EBIT margins by 50 basis points and returned $3.7 billion to shareholders through dividends and buybacks. This momentum persisted into the first half of FY2026, where revenue climbed 7% to $10.53 billion, driven partly by a 13% jump in interest earned on client funds in the first quarter. The market assigned a premium valuation to this durability, with the stock trading at 30.9x earnings and a $125.0 billion market cap at the close of FY2025.
Recent Developments (Q1 and Q2 2026)
In Q1 and Q2 2026, ADP advanced the integration of its October 2024 acquisition of WorkForce Software while delivering bottom-line leverage. Diluted EPS for the first six months rose 9% to $5.12, supported by a 30 basis point expansion in EBIT margins to 25.5% through December 31, 2025. This profitability cushioned the impact of an 8% rise in Q1 operating expenses directed toward R&D and product updates. Capital returns remained aggressive, with $2.1 billion distributed to shareholders in the first half via dividends and buybacks.
Bulls emphasize that organic growth in Employer Services reached 5% in the first quarter, underscoring continued pricing power, while bears cite elevated integration costs as a potential drag on near-term efficiency. Notably, the market’s appraisal has cooled significantly despite the earnings growth; as of the Q2 2026 update, shares traded at 24.6x earnings with a $99.7 billion market cap, a sharp contraction from the 30.9x multiple observed at the end of FY2025.
What to watch: WorkForce Software integration costs; organic growth rates in PEO Services.
Rev
$20.56B
FY2025
NI
$4.08B
FY2025
EPS
$10.02
FY2025
OCF
$4.94B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Jan 28, 2026)
Automatic Data Processing, Inc. (ADP) has filed a Form 8-K on January 27, 2026, to announce its financial results for the second quarter ended December 31, 2025. The company has made its earnings release, dated January 28, 2026, available on its website and has attached it as an exhibit to this filing. Investors should refer to the earnings release for detailed financial performance, operational highlights, and forward-looking statements for the second quarter of fiscal year 2026. This filing serves as the primary disclosure vehicle for these results, supplementing information typically found in quarterly reports.
AUTOMATIC DATA PROCESSING INC 8-K Report, Shareholder Vote Results (Nov 17, 2025)
Automatic Data Processing, Inc. (ADP) filed an 8-K on November 17, 2025, reporting the results of its Annual Meeting of Stockholders held on November 12, 2025. The meeting saw significant shareholder participation, with over 354 million shares represented. Key outcomes include the election of all director nominees by substantial margins and the approval, on an advisory basis, of the company's executive compensation. Additionally, shareholders ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year beginning July 1, 2025. Investors can take comfort in the strong shareholder support for both the board of directors and executive compensation policies, indicating alignment between management and ownership. The ratification of the auditor also suggests confidence in the company's financial oversight and reporting processes. While broker non-votes were present for director elections, the overwhelming 'For' votes for most nominees demonstrate broad shareholder approval.
AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Oct 29, 2025)
Automatic Data Processing, Inc. (ADP) filed an 8-K on October 29, 2025, reporting its financial results for the first quarter ended September 30, 2025. The company has made its earnings release, dated October 29, 2025, available on its website and has incorporated it by reference into this filing as Exhibit 99. Investors should refer to the earnings release for detailed financial performance and operational highlights during the first quarter. This 8-K primarily serves as a notification and an avenue to access the comprehensive quarterly results, which are crucial for understanding ADP's current financial health and trajectory.
AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Jul 30, 2025)
Automatic Data Processing, Inc. (ADP) has filed a Form 8-K on July 29, 2025, to announce its financial results for the fourth quarter and full fiscal year ended June 30, 2025. The details of these results are provided in an earnings release, which is attached as Exhibit 99 to this filing and incorporated by reference. Investors should refer to this earnings release for specific financial performance metrics, including revenue, earnings per share, and any forward-looking guidance. While the 8-K itself does not contain the detailed financial figures, it serves as the official notification that the company's comprehensive financial performance for the most recent fiscal period is now publicly available. This filing is crucial for investors seeking to understand ADP's operational success, profitability, and overall financial health as of the end of fiscal year 2025. The accompanying exhibit is the primary source for in-depth analysis.
AUTOMATIC DATA PROCESSING INC 8-K Report, Material Agreement (Jun 27, 2025)
Automatic Data Processing, Inc. (ADP) has announced the establishment of new credit facilities totaling $7.05 billion, comprised of a $4.55 billion 364-day facility and a $2.5 billion five-year facility. These new agreements replace prior facilities of similar structure and maturity but with potentially improved terms and greater capacity, including an accordion feature on the five-year facility that allows for an additional $500 million in commitments. These facilities provide ADP with significant financial flexibility for general corporate purposes, underscoring the company's stable financial footing and access to capital markets. Key aspects of the new facilities include revolving credit options, flexibility in interest rate selection (Term SOFR-based or prime rate), and commitment fees on unused portions. The maturities are structured to provide short-term liquidity (364-day facility with an option for a one-year extension) and longer-term financial support (five-year facility with renewal options). The company's ability to secure these substantial credit lines with major financial institutions highlights its creditworthiness and ongoing operational strength.
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