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AUTOMATIC DATA PROCESSING INCADP

Sector
Technology
Industry
Services-Computer Processing & Data Preparation
Exchange
Nasdaq

Stock Price $ADP

Latest filings

You are here#12 of 57 in Industrials by market cap

Filing record · 2016–202610-K1110-Q328-K103

ADP filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 103 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Sep ’16Sep ’16
  2. Leadership change8-K · May ’19May ’19
  3. Material agreement8-K · Jun ’21Jun ’21
  4. FY2025 annual report10-K · Aug ’25Aug ’25

01—Key figures

Source: 10-KFY2025
Source: 10-KFY2025
Source: 10-KFY2025
Source: 10-KFY2025

Revenue Trend

Year-over-year comparison from 10-K annual reports

  18. $20.56B
YoY changeLargest recent move+9.9%in FY22Latest +7.1%

2 older moves run past ±10% (largest −10.9%); point at, tap or drag across the bars to read one.

Latest bar from 10-KFY2025Click a bar to open its SEC filing

View full history →
All ADP Financial Metrics58 metrics

Income Statement15

Balance Sheet26

Cash Flow12

Per Share5

02—Overview

AUTOMATIC DATA PROCESSING INC Financial Overview 2021–2025

Updated Jul 10, 2026

Automatic Data Processing (ADP) marked its 50th consecutive annual dividend increase in FY2025 while returning a massive $3.7 billiona to shareholders, underscoring the sheer cash-generating power of its recurring-revenue model. The payroll giant operates as a relentless compounding machine, leveraging sticky enterprise relationships and high interest rates on client funds to drive highly profitable, predictable growth. This fundamental stability is evident across a multi-year expansion, as total revenue grew from $15.0 billion in FY2021 to $20.56 billion in FY2025.

That top-line momentum is protected by a formidable 92.1% client retention rate in its Employer Services segment during FY2025. ADP is actively reinvesting this cash flow to widen its moat, highlighted by the $1.2 billion acquisitionb of WorkForce Software in October 2024 and aggressive rollouts of generative AI platforms like ADP Lyric. These strategic moves, combined with careful cost discipline, drove a 50-basis-point expansion in EBIT margins in FY2025. Investors have heavily rewarded this combination of operational efficiency and steady capital return. At the close of FY2025, the market valued the company at a $125.0 billion market cap, with the stock priced at $308.40 and trading at a premium 30.9x P/E ratio.

Recent Developments (Q2 and Q3 2026)

ADP maintained steady top-line momentum through Q3 2026, generating $16.5 billionc in revenue over the nine months ended March 31, 2026. This represents a 7% year-over-year increase, supported by a 7.3% rise in average client fund balances. Operational efficiencies drove a further 50-basis-point EBIT margin expansion during the period, lifting net earnings 8% to $3.4 billion and diluted EPS 10% to $8.49. Management fortified corporate liquidity by issuing $1 billion in 5.000% senior notes due 2036 in May 2026 and securing $9.2 billion in new credit facilities in June 2026.

Bulls emphasize the company's ability to compound earnings through higher interest yields despite a tepid hiring environment. Bears warn that slow underlying volume growth, highlighted by a mere 1% increase in Employer Services pays per control, limits core operational upside. The stock trades at an accessible 21.2x earnings as of April 30, 2026.

What to watch: capital deployment leveraging the new $9.2 billiond credit facilities; fluctuations in client fund interest revenue.

03—Filings

Recent SEC Filings

  1. 8-KAUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Jul 29, 2026)ADP reported fiscal 2026 full-year results (year ended June 30, 2026) and issued fiscal 2027 guidance in an 8-K furnished under Item 2.02. Revenue rose 7% to $21.9 billion (6% organic constant currency), net earnings increased 8% to $4.4 billion, and adjusted EBIT grew 10% to $5.9 billion with a 80 basis point margin expansion to 26.8%. Diluted EPS rose 10% to $10.94, and adjusted diluted EPS rose 11% to $11.12. Fourth-quarter results were stronger, with adjusted diluted EPS up 17% to $2.64 and adjusted EBIT margin up 140 basis points to 25.1%, and management said the company finished the year at the high end of its guidance ranges. The near-term outlook calls for fiscal 2027 revenue growth of 5% to 6%, adjusted EBIT margin expansion of 70 to 90 basis points, and adjusted diluted EPS growth of 9% to 11%. Client funds interest is a major swing factor: management expects client funds interest revenue of $1.540 to $1.560 billion, up from $1.355 billion, on an assumed blended yield rising to about 3.7% and balance growth of 3% to 4%. Employer Services client revenue retention is guided to decline 10 to 30 basis points from 92.1%, which is a watch item for investors. The quarter also included a $91 million pre-tax business alignment charge, mostly severance, which is excluded from adjusted results. Balance sheet changes were notable: long-term debt rose to $4.96 billion, commercial paper was fully repaid, and share repurchases reached $2.08 billion for the year. Investors should weigh the strong earnings growth against the reliance on interest income and the reported retention pressure.
  2. 8-KAUTOMATIC DATA PROCESSING INC 8-K Report, Material Agreement (Jun 26, 2026)Automatic Data Processing, Inc. (ADP) has entered into new credit agreements totaling $9.2 billion, replacing its previous facilities. The company secured a $5.7 billion 364-day credit facility and a $3.5 billion five-year credit facility. The five-year facility includes an accordion feature allowing for an additional $500 million in commitments, potentially increasing its total capacity to $4 billion. These new facilities provide ADP with significant liquidity and flexibility for general corporate purposes, replacing existing credit lines that expired on June 26, 2026. The structure of these new facilities offers revolving credit options denominated in multiple currencies (USD, CAD, EUR for the five-year facility) and interest rates tied to SOFR or prime rate benchmarks. The company will pay commitment fees on unused portions and a term-out fee on the 364-day facility. Standard covenants and events of default are included, consistent with industry practices. This strategic move enhances ADP's financial footing and operational capacity.
  3. 8-KAUTOMATIC DATA PROCESSING INC 8-K Report, Material Agreement (May 7, 2026)Automatic Data Processing, Inc. (ADP) announced the successful issuance and sale of $1,000,000,000 aggregate principal amount of its 5.000% senior notes due 2036. This offering, executed on May 4, 2026, and closed on May 7, 2026, was conducted under an Underwriting Agreement with prominent financial institutions including BNP Paribas Securities Corp., BofA Securities, Inc., and J.P. Morgan Securities LLC. The notes were registered with the SEC and offered through a prospectus supplement, indicating a well-established and registered debt issuance process. This debt issuance provides ADP with significant capital, which could be used for various corporate purposes such as funding general corporate operations, potential acquisitions, or refinancing existing debt. The fixed interest rate of 5.000% on these senior notes offers predictability for future interest expenses. Investors in these notes are acquiring a debt instrument from a well-established company, with the terms and legality of the issuance further supported by counsel opinions filed with the SEC.
  4. 8-KAUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Apr 29, 2026)ADP reported third quarter fiscal 2026 results (quarter ended March 31, 2026) that came in ahead of management's expectations across revenue growth, adjusted EBIT margin, and adjusted EPS. Total revenues rose 7% to $5.9 billion (6% organic constant currency), net earnings rose 9% to $1.36 billion, and diluted EPS rose 10% to $3.38 (adjusted diluted EPS of $3.37). Adjusted EBIT grew 10% to $1.79 billion, with adjusted EBIT margin expanding 80 basis points to 30.2%. Employer Services drove the quarter, with segment revenue up 7% and segment margin up 130 basis points to 41.1%, while PEO Services revenue grew 7% but segment margin contracted 120 basis points to 13.0%, reflecting higher zero-margin pass-through costs and workers' compensation expenses. Interest on funds held for clients was a significant contributor, rising 14% to $404 million on average client fund balances of $48.3 billion (up 9%) and a 10 basis point increase in average yield to 3.3%. Net impact from the client funds strategy rose 17% to $401 million. Management characterized the quarter as strong and highlighted investment in AI capabilities across products, service delivery, and sales. Management raised fiscal 2026 guidance: revenue growth is now expected at 6% to 7% (previously about 6%), adjusted EBIT margin expansion at 70 to 80 basis points (previously 50 to 70), and adjusted diluted EPS growth at 10% to 11% (previously 9% to 10%). The client funds interest revenue outlook was increased to $1.340 to $1.350 billion from $1.310 to $1.330 billion. Investors should note that a portion of the earnings strength stems from elevated interest income on client funds, which is sensitive to interest rate movements, and that the adjusted results exclude minor items such as a roughly $2 million reversal of a prior workforce optimization charge and about $4 million of ADP Ventures investment gains.
  5. 8-KAUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Jan 28, 2026)ADP reported fiscal Q2 2026 (quarter ended December 31, 2025) results that met or beat its expectations across the board. Revenue rose 6% year over year to $5.36 billion (5% organic constant currency), and GAAP net earnings increased 10% to $1.06 billion. Diluted EPS grew 11% to $2.62, and adjusted EBIT margin expanded 80 basis points to 26.0%. Employer Services revenue grew 6% with segment margin up 50 basis points, while PEO Services revenue grew 6% but segment margin fell 70 basis points. U.S. pays per control rose 1%. The most notable item for investors is the raised full-year fiscal 2026 outlook. Management now expects revenue growth of about 6% (previously 5% to 6%), adjusted diluted EPS growth of 9% to 10% (previously 8% to 10%), and client funds interest revenue of $1.310 to $1.330 billion (previously $1.300 to $1.320 billion). Adjusted EBIT margin expansion of 50 to 70 basis points and the adjusted effective tax rate of about 23% were held steady. Employer Services bookings growth of 4% to 7% and client revenue retention decline of 10 to 30 basis points were also reaffirmed. Interest on client funds is a significant earnings driver. Interest on funds held for clients rose 13% to $309 million on a 6% increase in average balances to $37.6 billion and a 20 basis point rise in yield to 3.3%. Balance sheet figures show a sharp jump in funds held for clients and client funds obligations, both now around $67.5 billion, driven by the timing of client funds and the company's extended investment strategy. Net cash from operations for the six months was $1.78 billion, down from $1.97 billion, and the company repaid $4.77 billion of commercial paper while repurchasing $882 million of stock.
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04—See also

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