01—Abstract
Summary
Summary of the 10-K filed August 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Automatic Data Processing, Inc. (ADP) reported strong performance for the fiscal year ended June 30, 2026, with total revenues increasing by 7% to $21,947.4 milliona.
This growth was driven by new business bookings, client retention, and increased interest income from client funds. The company demonstrated solid profitability, with an 8% increase in Earnings Before Income Taxes (EBIT) and an expansion in EBIT margin by 30 basis points. The company also returned significant capital to shareholders through dividends and share repurchases, totaling $4.7 billionb.
ADP continues to heavily invest in its Human Capital Management (HCM) technology, particularly in Artificial Intelligence (AI). The "ADP Assist" AI agents have been integrated across its payroll, benefits, HR, and compliance solutions, enhancing client workflows and improving efficiency.
The company's strategic priorities of leading with technology, offering unmatched expertise, and leveraging global scale are proving effective in a dynamic market. While facing competitive pressures and regulatory complexities, ADP's diversified service offerings and strong client relationships position it for continued success.
02—Key points
Key Highlights
- Total revenues grew by 7% to $21,947.4 million in fiscal year 2026.
- Earnings Before Income Taxes (EBIT) increased by 8% to $5,730.3 million.
- EBIT margin expanded by 30 basis points, reaching 26.1%.
- Diluted Earnings Per Share (EPS) grew by 10% to $10.94.
- ADP returned $4.7 billion to shareholders through dividends ($2.6 billion) and share repurchases ($2.1 billion).
- The company continues to integrate AI across its HCM solutions, notably with 'ADP Assist' agents now accessible to nearly all clients.
- Employer Services segment revenue grew 7%, while PEO Services revenue also grew 7%.
03—Questions
Frequently Asked Questions
What are ADP's key strategic priorities?
ADP's three key strategic priorities are: 1. Lead with Best-in-Class HCM Technology, focusing on AI-enabled platforms. 2. Provide Unmatched Expertise and Outsourcing Solutions, leveraging decades of experience. 3. Benefit clients with Global Scale, expanding its reach and service offerings across over 140 countries.
How is ADP leveraging Artificial Intelligence (AI)?
ADP is integrating AI into the core of its Human Capital Management (HCM) processes. The company has deployed 'ADP Assist' AI agents across its payroll, benefits, HR, and compliance solutions to improve efficiency and accuracy for clients. ADP also recognizes the importance of its large dataset for training AI and has been recognized for its innovative approach to AI tools.
What is ADP's financial performance like for the fiscal year 2026?
For the fiscal year ended June 30, 2026, ADP reported a 7% increase in total revenues to $21,947.4 million, driven by growth in both Employer Services and PEO Services segments. Profitability also improved, with EBIT up 8% and diluted EPS up 10%. The company also returned significant capital to shareholders through dividends and share repurchases.
How does ADP manage client funds and associated risks?
ADP manages significant client funds, investing them in safe, liquid, investment-grade securities to generate interest income. The company utilizes short-term financing arrangements and has substantial credit facilities to ensure liquidity for these obligations. Risks related to client funds are managed through diversification, credit quality limits, and robust liquidity management, with investments primarily in high-quality assets.
04—Continue