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AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Jul 29, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed July 29, 2026
Period End
July 29, 2026
Security
ADP
In the 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. Material agreement8-K · Jun ’19Jun ’19
  3. Leadership change8-K · Sep ’21Sep ’21
  4. Material agreement8-K · Jun ’25Jun ’25

01—Abstract

Summary

Summary of the 8-K filed July 29, 2026. Cited figures are marked; the original filing is the authoritative source.

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 billiona (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 billionb, 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 millionc 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.

02—Key points

Key Highlights

  1. FY2026 revenue rose 7% to $21.9 billion (6% organic constant currency); Employer Services bookings grew 6% to $2.2 billion.
  2. FY2026 adjusted diluted EPS rose 11% to $11.12; GAAP diluted EPS rose 10% to $10.94.
  3. Q4 FY2026 adjusted EBIT margin expanded 140 bps to 25.1%, and adjusted diluted EPS rose 17% to $2.64.
  4. FY2027 guidance: revenue growth of 5% to 6%, adjusted EBIT margin expansion of 70 to 90 bps, and adjusted diluted EPS growth of 9% to 11%.
  5. Client funds interest revenue is guided to $1.540 to $1.560 billion for FY2027, up from $1.355 billion, supported by a higher assumed yield of about 3.7%.
  6. Employer Services client revenue retention is guided to decline 10 to 30 bps from 92.1%, a potential concern for investors.
  7. A $91.1 million pre-tax business alignment charge (mostly severance) was excluded from adjusted results; long-term debt increased to $4.96 billion and $2.08 billion was returned via buybacks.

03—Questions

Frequently Asked Questions

  1. How did ADP perform in fiscal 2026?

    ADP grew total revenue 7% to $21.9 billion, with 6% organic constant currency growth. Net earnings rose 8% to $4.4 billion, adjusted EBIT rose 10% to $5.9 billion, and adjusted diluted EPS rose 11% to $11.12. Management said results finished at the high end of guidance for revenue growth, margin expansion, and adjusted EPS growth.

  2. What is ADP guiding for fiscal 2027?

    ADP guides to 5% to 6% revenue growth, 70 to 90 bps of adjusted EBIT margin expansion, and 9% to 11% adjusted diluted EPS growth. GAAP diluted EPS growth is guided to 11% to 13%, and the adjusted effective tax rate is about 23%.

  3. Why is client funds interest income important to the outlook?

    Client funds interest is a significant earnings driver. Management expects interest revenue of $1.540 to $1.560 billion in FY2027, based on balance growth of 3% to 4% and a higher average yield of about 3.7%. Because the outlook depends on interest rate assumptions from futures and yield curves as of July 28, 2026, changes in rates could affect results.

  4. Are there any concerning trends in the results?

    Employer Services client revenue retention is flat at 92.1% for the year, and FY2027 guidance calls for a 10 to 30 bps decline. PEO segment margin fell 110 bps to 13.1% for the year, and PEO segment earnings declined 2%. U.S. pays per control growth was only 1%.

  5. What one-time items affected fiscal 2026 results?

    The company recorded a $91.1 million pre-tax business alignment charge in Q4, mostly severance, and an approximately $18 million net legal settlement charge. These were partly offset by about $8 million of ADP Ventures investment gains and about $5 million of workforce optimization reversals. Management excludes these items from adjusted results.

04—Continue

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