ADP · AUTOMATIC DATA PROCESSING INC

389 filings

ADP SEC Filings

AUTOMATIC DATA PROCESSING INC - 389 total filings

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

Showing 1–50 of 389 filings

AUTOMATIC DATA PROCESSING INC Annual Report, Year Ended Jun 30, 2026

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 million. 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 billion. 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.

Aug 5, 2026 8-K

AUTOMATIC 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.

Jul 29, 2026 8-K

AUTOMATIC 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.

Jun 26, 2026 8-K

AUTOMATIC 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.

May 7, 2026 10-Q

AUTOMATIC DATA PROCESSING INC Quarterly Report for Q3 Ended Mar 31, 2026

Automatic Data Processing, Inc. (ADP) reported solid financial results for the nine months ended March 31, 2026. Total revenues grew by 7% to $16.5 billion, driven by strong client retention, new business, an increase in pricing, and growth in interest earned on client funds. Net earnings also increased by 8% to $3.4 billion, translating to diluted earnings per share (EPS) of $8.49. The company's financial condition remains robust, supported by consistent cash flow generation and a healthy liquidity position, allowing for continued shareholder-friendly actions including dividends and share repurchases. The company continues to invest in its strategic priorities, including leading with best-in-class HCM technology and leveraging AI transformation to enhance its offerings. Key operational highlights include a 1% increase in 'pays per control' for Employer Services and a 2% increase in average worksite employees for PEO Services, indicating stable underlying business growth. The company also successfully integrated the WorkForce Software acquisition, which is expected to contribute to future growth. Despite increased operating expenses, particularly related to PEO services and investments in R&D and sales, ADP maintained its focus on operational efficiencies and margin expansion, with EBIT margin increasing by 50 basis points.

Apr 30, 2026 8-K

AUTOMATIC 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.

Apr 29, 2026 10-Q

AUTOMATIC DATA PROCESSING INC Quarterly Report for Q2 Ended Dec 31, 2025

Automatic Data Processing, Inc. (ADP) reported solid financial results for the six months ended December 31, 2025, demonstrating consistent growth and operational efficiency. Total revenues increased by 7% year-over-year to $10.53 billion, driven by new business, client retention, strategic pricing, and a notable increase in interest income from client funds, which benefited from higher average client fund balances and increased interest rates. The company also achieved an expansion in its earnings before income taxes (EBIT) margin by 30 basis points, reflecting effective cost management and revenue growth. This growth was underpinned by strategic investments in technology and an expanded sales organization, balanced by disciplined expense control. ADP continued its commitment to shareholder returns, repurchasing approximately $0.9 billion of its stock and paying $1.3 billion in dividends during the period. The acquisition of WorkForce Software in October 2024 is being integrated into the Employer Services segment and is expected to contribute to future growth. The company's financial position remains strong, with ample liquidity from operations and committed credit facilities to support ongoing operations, dividend payments, and potential future investments. Looking ahead, ADP remains focused on its strategic priorities of leading with best-in-class HCM technology and leveraging its global scale to serve clients.

Jan 29, 2026 8-K

AUTOMATIC 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.

Jan 28, 2026 8-K

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.

Nov 17, 2025 10-Q

AUTOMATIC DATA PROCESSING INC Quarterly Report for Q1 Ended Sep 30, 2025

Automatic Data Processing, Inc. (ADP) reported a solid first quarter for fiscal year 2026, with total revenues increasing by 7% year-over-year to $5.2 billion. This growth was driven by new client bookings, strong client retention, higher interest income on client funds, and the impact of the recent WorkForce Software acquisition. Net earnings rose 6% to $1.01 billion, resulting in diluted earnings per share (EPS) of $2.49, a 6% increase. Key financial strengths include continued revenue growth, particularly in the Employer Services segment, and robust profitability. The company returned $1.0 billion to shareholders through dividends and share repurchases, underscoring its commitment to capital return. While operating expenses and R&D increased, partly due to investments in new products and the recent acquisition, the company maintained its adjusted EBIT margin. ADP's strong business model, characterized by low capital intensity and consistent cash flow generation, positions it well to meet operational needs and continue strategic investments.

Oct 31, 2025 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Oct 29, 2025)

ADP reported first quarter fiscal 2026 results (quarter ended September 30, 2025) that met management's expectations and showed steady top-line growth. Total revenues rose 7% year over year to $5.2 billion (6% organic constant currency), net earnings rose 6% to $1.0 billion, and diluted EPS increased 6% to $2.49 (adjusted diluted EPS up 7% to $2.49). Adjusted EBIT grew 7% to $1.3 billion, with the adjusted EBIT margin flat at 25.5%. Management attributed the beat versus its own expectations to new business bookings growth, strong client revenue retention, and higher client funds interest revenue. The quality of growth is mixed under the surface. Employer Services revenue grew 7% reported (5% organic constant currency) but its segment margin fell 50 basis points to 35.2%, and U.S. pays per control was roughly flat versus a 2% gain a year earlier. PEO Services revenue rose 7% but segment margin compressed 140 basis points to 13.0%, and segment earnings declined 3%. Interest on funds held for clients rose 13% to $287 million, helped by a higher average yield of 3.3% and a 7% increase in average client balances. That interest income is a meaningful contributor to earnings and is sensitive to rate movements. ADP maintained its fiscal 2026 consolidated outlook: revenue growth of 5% to 6%, adjusted EBIT margin expansion of 50 to 70 basis points, and adjusted diluted EPS growth of 8% to 10%. Within the outlook, management raised the client funds interest revenue forecast to $1.300 to $1.320 billion and the net client funds extended strategy contribution to $1.260 to $1.280 billion, while lowering the U.S. pays per control expectation to roughly flat from 0% to 1%. Cash flow from operations was $642 million, down from $824 million a year earlier, and commercial paper borrowings rose to $5.2 billion. This filing is an earnings release furnished under Item 2.02 and does not itself contain new financial statements requiring Item 4 or other disclosures.

Oct 29, 2025 10-K

AUTOMATIC DATA PROCESSING INC Annual Report, Year Ended Jun 30, 2025

Automatic Data Processing, Inc. (ADP) reported strong financial performance for the fiscal year ended June 30, 2025, with total revenues increasing by 7% to $20.56 billion. This growth was driven by new client acquisitions, strong client retention, strategic acquisitions including WorkForce Software, and increased interest income on funds held for clients. The company demonstrated solid operational efficiency, with Earnings Before Income Taxes (EBIT) and Adjusted EBIT margins expanding by 50 basis points, reflecting effective cost management and revenue growth. ADP continues to prioritize innovation and client experience, evidenced by the launch of ADP Lyric HCM and strategic investments in artificial intelligence (AI) and machine learning. The company's commitment to shareholder returns is highlighted by $3.7 billion in cash returned through dividends and share repurchases. With a robust business model characterized by recurring revenue and low capital intensity, ADP is well-positioned to navigate market dynamics and continue delivering value to its clients and shareholders. The company's financial condition remains solid, supported by ample liquidity and strong cash flow generation, enabling continued investment in growth initiatives and a consistent return of capital to stockholders.

Aug 6, 2025 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Jul 30, 2025)

ADP reported fiscal 2025 (year ended June 30, 2025) results on July 30, 2025, in an earnings release furnished as Exhibit 99 to this 8-K under Item 2.02. Full-year revenue rose 7% to $20.6 billion (7% organic constant currency), net earnings rose 9% to $4.1 billion, and diluted EPS rose 10% to $9.98 (adjusted diluted EPS up 9% to $10.01). Adjusted EBIT margin expanded 50 basis points to 26.0%. Employer Services, the larger segment, grew revenue 7% for the year and 8% in the fourth quarter, with segment margin up 100 basis points for the year. PEO Services revenue grew 7%, though its segment margin declined 60 basis points. The results were driven in part by client funds interest income, which rose 16% to $1.19 billion for the year on higher average balances and yields. Investors should note that this interest income is sensitive to interest rates, and management's fiscal 2026 outlook assumes the yield on client funds rises to about 3.4% and the net client funds extended strategy contribution reaches $1.25 to $1.27 billion. Balance sheet activity included a $1.2 billion acquisition outflow, $4.8 billion of commercial paper issuance, and roughly $2.4 billion in dividends paid, with total stockholders' equity rising to $6.2 billion from $4.5 billion. For fiscal 2026, ADP guided to 5% to 6% consolidated revenue growth, 50 to 70 basis points of adjusted EBIT margin expansion, and 8% to 10% adjusted diluted EPS growth. Employer Services revenue growth is guided at 5% to 6% and PEO Services revenue growth at 5% to 7%. Management emphasized consistent revenue growth and continued margin expansion as its priorities for the year.

Jul 30, 2025 8-K

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.

Jun 27, 2025 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Regulation FD Disclosure (Jun 12, 2025)

ADP filed this 8-K under Item 7.01 (Regulation FD) to furnish the slide deck and announce a live webcast of its 2025 Investor Day in New York on June 12, 2025. The filing itself contains no new financial results, guidance changes, or material events; the substance lies in the furnished Exhibit 99 presentation, which is explicitly excluded from liability under Section 18 of the Exchange Act. Investors should treat the presentation as management's forward-looking framework rather than audited or reconciled financial disclosure. The presentation sets medium-term objectives for FY25 through the outer years: 6-7% revenue growth (organic constant currency), 8-10% adjusted EBIT growth supported by roughly 50-75 bps of annual margin expansion, and 9-11% adjusted EPS growth assuming a 1% annual share count reduction. It also presents a total shareholder return target of 11-13% assuming a 2% dividend yield. Management reports FY24 revenue of $19.2B, a FY21-FY25E revenue CAGR of about 8%, and adjusted EBIT margin rising from about 18.9% in FY15 toward roughly 26% in FY25E (guidance midpoint from April 30, 2025). Management notes that these objectives exclude significant M&A and macro shifts, and that the figures are not a reaffirmation of prior guidance. Strategically, ADP emphasizes AI deployment across products, service, and sales (including ADP Assist, agentic AI roadmap, and its Lyric and WorkForce Software platforms), a PEO opportunity it sizes at roughly 750K worksite employees, and capital return of about $30B over FY15-FY25E. The presentation also previews a CFO transition, with Peter Hadley named incoming CFO. Investors should weigh the upbeat targets against the presentation's own non-GAAP caveats and the forward-looking risk factors it lists, including AI disruption, competition, and wage and employment trends.

Jun 12, 2025 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Material Agreement (May 8, 2025)

Automatic Data Processing, Inc. (ADP) has filed an 8-K report detailing a significant financing transaction. On May 5, 2025, the Company entered into an Underwriting Agreement to issue and sell $1 billion in aggregate principal amount of 4.750% senior notes due 2032. This offering was registered with the SEC and is being conducted through a prospectus supplement, indicating a standard capital markets transaction. The issuance of these notes, which occurred on May 8, 2025, was formalized through an Indenture with U.S. Bank Trust Company, National Association serving as trustee. This transaction represents a strategic move by ADP to access capital markets for a substantial amount. Investors should note that the proceeds from this offering are not explicitly detailed in this filing, but such debt issuance typically supports general corporate purposes, potential acquisitions, or refinancing existing debt. The inclusion of the underwriting agreement with major financial institutions like BofA Securities, J.P. Morgan, and Morgan Stanley, along with the legal opinion from Davis Polk & Wardwell LLP, underscores the formality and scale of this debt issuance.

May 8, 2025 10-Q

AUTOMATIC DATA PROCESSING INC Quarterly Report for Q3 Ended Mar 31, 2025

Automatic Data Processing, Inc. (ADP) reported solid financial results for the third quarter and the first nine months of fiscal year 2025. Total revenues increased by 6% year-over-year to $5.55 billion for the quarter and 7% to $15.43 billion for the nine-month period, driven by new business, client retention, pricing increases, and interest income on client funds. The company also benefited from its recent acquisitions, WorkForce Software and PEI. Net earnings grew 5% to $1.25 billion ($3.06 per diluted share) for the quarter, and 8% to $3.17 billion ($7.75 per diluted share) for the nine months. The company continued its commitment to shareholder returns, repurchasing shares and increasing its dividend for the 50th consecutive year. ADP's financial condition remains strong, supported by consistent cash flow generation and ample liquidity, positioning the company well for future growth and investments in its HCM technology solutions.

May 1, 2025 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Executive Changes (Apr 30, 2025)

ADP announced on April 28, 2025 (disclosed via Form 8-K on April 30, 2025) that Peter J. Hadley, the company's current Treasurer, will become Chief Financial Officer effective July 1, 2025, succeeding Don McGuire, who has served as CFO since 2021. McGuire will step down from the role June 30, 2025, and remain a corporate officer through September 30, 2025 to support a transition. Hadley will report directly to CEO Maria Black. This is a planned internal succession rather than a departure driven by problems, and the filing does not disclose any change to guidance, financial results, or strategy. Hadley, 52, joined ADP in 2002 and has held a series of senior finance and operating roles, including CFO of Global Enterprise Solutions and Employer Services International, President of Asia Pacific, and Treasurer since 2022. His background includes prior work at KPMG and Arthur Andersen and he is a qualified Chartered Accountant. His experience spanning finance and operations, particularly international, is the main point management emphasized in choosing him. The filing lays out Hadley's compensation: a $650,000 base salary, a 150% target bonus tied to performance objectives, and an expected fiscal 2026 equity award of $4,875,000 in PSUs and RSUs. Severance protections include 18 months of salary continuation and continued vesting on a without-cause termination, and 150% of total annual compensation plus accelerated vesting if terminated within two years after a change in control. Investors may want to track the first earnings calls under the new CFO for continuity in guidance and capital allocation priorities.

Apr 30, 2025 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Apr 30, 2025)

ADP (Nasdaq: ADP) reported third quarter fiscal 2025 results (quarter ended March 31, 2025) on April 30, 2025, delivering solid top- and bottom-line growth. Total revenues rose 6% to $5.55 billion (6% organic constant currency), net earnings rose 5% to $1.25 billion, and diluted EPS grew 6% to $3.06. Adjusted EBIT grew 6% to $1.63 billion with adjusted EBIT margin up 10 basis points to 29.3%. Employer Services revenue grew 5% and segment margin expanded 20 basis points to 39.8%, while PEO Services revenue grew 7% on a 2% increase in average worksite employees to about 748,000. Interest on funds held for clients rose 11% to $355 million, a meaningful contributor to growth. Management raised its fiscal 2025 outlook for adjusted EBIT margin (now expanding 40 to 50 basis points, up from 30 to 50) and adjusted diluted EPS growth (now 8% to 9%, up from 7% to 9%). Revenue growth guidance of 6% to 7% was maintained, while the Employer Services margin outlook was raised to 50 to 60 basis points and the PEO Services margin outlook was lowered to a decline of 60 to 80 basis points. The client funds interest revenue outlook was also raised to $1.160 to $1.170 billion, reflecting higher expected client fund balances and yields. For investors, the quarter reflects consistent execution with record client satisfaction and a rising contribution from client funds interest. Balance sheet items to watch include short-term debt rising to about $1.0 billion and goodwill increasing to $3.30 billion following acquisitions, which consumed $1.17 billion of cash in the first nine months. This 8-K furnishes earnings materials under Item 2.02 and does not itself contain new disclosures beyond the earnings release.

Apr 30, 2025 10-Q

AUTOMATIC DATA PROCESSING INC Quarterly Report for Q2 Ended Dec 31, 2024

Automatic Data Processing, Inc. (ADP) reported solid financial results for the six months ended December 31, 2024. Total revenues increased by 8% to $9.88 billion, driven by new business, strong client retention, increased pricing, and growth in PEO and Employer Services segments. The acquisition of WorkForce Software in October 2024 is being integrated and is expected to contribute to future growth. The company also highlighted its continued commitment to shareholder returns, with $1.79 billion returned through dividends and share repurchases. The company demonstrated robust operational performance with Earnings Before Income Taxes (EBIT) increasing by 12% to $2.49 billion and EBIT margin expanding by 90 basis points. Diluted Earnings Per Share (EPS) saw a 12% increase to $4.69. ADP's financial condition remains strong, supported by significant cash flow generation and a solid liquidity position, enabling continued investment in business enhancements and strategic priorities.

Jan 30, 2025 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Jan 29, 2025)

ADP (Nasdaq: ADP) reported second quarter fiscal 2025 results for the three months ended December 31, 2024, showing broad-based growth. Total revenues rose 8% to $5.05 billion (8% organic constant currency), net earnings grew 10% to $963.2 million, and diluted EPS increased 10% to $2.35. Adjusted EBIT rose 11% to $1.27 billion, with adjusted EBIT margin expanding 60 basis points to 25.2%. Employer Services revenue grew 8% and its segment margin expanded 90 basis points to 34.9%, while PEO Services revenue grew 8% but its segment margin contracted 140 basis points to 15.1%. Net interest income from client funds was a meaningful contributor, with interest on funds held for clients up 21% to $273 million, driven by an 8% increase in average client fund balances to $35.3 billion and a 30 basis point rise in the average yield to 3.1%. Management maintained its fiscal 2025 consolidated outlook: revenue growth of 6% to 7%, adjusted EBIT margin expansion of 30 to 50 basis points, and adjusted diluted EPS growth of 7% to 9%. Within the outlook, the company raised its client funds interest revenue expectation to $1.140 to $1.160 billion (from $1.115 to $1.135 billion) and its net client funds extended strategy contribution to $1.025 to $1.045 billion (from $1.000 to $1.020 billion), reflecting higher expected balances and yields. Management also noted the 50th consecutive year of dividend increases, approved in November 2024. Balance sheet changes include a rise in total assets to $64.1 billion, largely from client funds, goodwill and intangibles associated with acquisitions (goodwill up about $830 million since June 30, 2024), and $1.0 billion in short-term debt. Six-month operating cash flow increased to $1.97 billion from $1.36 billion a year earlier. For investors, the quarter shows solid execution and healthy HCM demand, with the main watch items being PEO margin compression, U.S. pays per control growth of only 1%, and the sensitivity of earnings to interest rates through client funds income. The filing itself is a Form 8-K furnishing the earnings release under Item 2.02, so the information is presented as earnings-release disclosure rather than audited results.

Jan 29, 2025 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Shareholder Vote Results (Nov 12, 2024)

This 8-K filing from Automatic Data Processing, Inc. (ADP) details the outcomes of its Annual Meeting of Stockholders held on November 6, 2024. The primary focus of the report is the voting results for the election of directors, the advisory vote on executive compensation, and the ratification of the independent registered public accounting firm. All incumbent directors were overwhelmingly re-elected, indicating strong shareholder confidence in the current board's leadership and strategy. Furthermore, shareholders provided an advisory approval for the company's executive compensation practices and ratified the appointment of Deloitte & Touche LLP as the independent auditor for the upcoming fiscal year, signaling continued support for ADP's governance and financial oversight.

Nov 12, 2024 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Executive Changes (Nov 8, 2024)

Automatic Data Processing, Inc. (ADP) has filed an 8-K report detailing a significant change in its executive leadership. Effective January 1, 2025, John C. Ayala will be stepping down as Chief Operating Officer (COO). Mr. Ayala will remain with the company in a corporate officer capacity during a transition period extending through March 31, 2025, ensuring a smooth handover of responsibilities. This transition marks a shift in operational leadership for ADP. In conjunction with Mr. Ayala's departure from the COO role, Joseph DeSilva, currently President of Global Sales, will assume the newly defined position of Executive Vice President, North America and Chief of Operations, also effective January 1, 2025. This appointment comes with an adjustment to Mr. DeSilva's compensation, including a 6.2% increase in base salary and an enhanced annual target bonus, now set at 150% of base salary, up from the previous 100%. Investors should monitor the operational execution and integration under Mr. DeSilva's leadership.

Nov 8, 2024 10-Q

AUTOMATIC DATA PROCESSING INC Quarterly Report for Q1 Ended Sep 30, 2024

Automatic Data Processing, Inc. (ADP) reported a strong first fiscal quarter ended September 30, 2024, with total revenues increasing by 7% to $4.83 billion, driven by new business, client retention, and pricing increases. Profitability also saw a notable improvement, with Net Earnings rising 11% to $956.3 million, and Diluted EPS growing 13% to $2.34. The company highlighted strategic investments in technology, including generative AI, and a significant acquisition of WorkForce Software in October 2024 for $1.2 billion, which is expected to bolster its Employer Services segment. ADP's financial position remains robust, supported by consistent operating cash flows and a strong balance sheet. The company returned $940 million to shareholders through dividends ($570 million) and share repurchases ($370 million). Management's focus on strategic priorities, coupled with operational efficiencies and favorable interest income on client funds, positions ADP for continued growth and value creation for shareholders.

Nov 1, 2024 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Oct 30, 2024)

ADP reported first quarter fiscal 2025 results (quarter ended September 30, 2024) that beat management's expectations on revenue and margin. Total revenues rose 7% to $4.83 billion (7% organic constant currency), net earnings increased 11% to $956 million, and diluted EPS grew 13% to $2.34 (adjusted diluted EPS up 12% to $2.33). Adjusted EBIT rose 13% to $1.23 billion, with the adjusted EBIT margin expanding 130 basis points to 25.5%. Employer Services was the main driver, with segment revenue up 7% and segment margin up 260 basis points to 35.7%, while PEO Services revenue grew 7% but its segment margin contracted 80 basis points to 14.3%. Interest on funds held for clients rose 26% to $253 million on a 50 basis point increase in the average yield to 3.1%, a notable contributor to results. The main forward-looking news is that ADP raised the top end of its revenue outlook and narrowed its adjusted diluted EPS growth guidance, now 7% to 9% (down from 8% to 10%), which reflects the October 15, 2024 acquisition of WorkForce Software for approximately $1.2 billion in cash. Full-year revenue growth guidance was updated to 6% to 7% from 5% to 6%, and adjusted EBIT margin expansion guidance is 30 to 50 basis points, down from 60 to 80 basis points. Management also lowered its client funds interest revenue outlook to $1.115 to $1.135 billion, from $1.125 to $1.145 billion. Management cited ongoing strategic investments as it pursues long-term growth. Balance sheet and cash flow changes were significant during the quarter. Total assets declined to $49.5 billion from $54.4 billion as client funds obligations fell sharply, while short-term debt increased through $4.4 billion of commercial paper issued to fund the acquisition, alongside $988.9 million of new debt proceeds. Operating cash flow was $824 million, compared with $327 million a year earlier. Stockholders' equity increased to $5.3 billion, and the company repurchased $373 million of common stock while paying $573 million in dividends.

Oct 30, 2024 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Material Agreement (Sep 9, 2024)

Automatic Data Processing, Inc. (ADP) has filed an 8-K report detailing the successful issuance of $1 billion in aggregate principal amount of 4.450% senior notes due 2034. This issuance, which occurred on September 9, 2024, was executed under an Underwriting Agreement with major financial institutions including BofA Securities, J.P. Morgan Securities, and Morgan Stanley. The new debt offering was registered with the SEC on Form S-3 and offered via a prospectus dated September 4, 2024. The proceeds from this offering will bolster ADP's capital structure, providing financial flexibility for its operations and strategic initiatives. The notes were issued pursuant to an Indenture, as supplemented by a Third Supplemental Indenture, with U.S. Bank Trust Company, National Association acting as trustee.

Sep 9, 2024 10-K

AUTOMATIC DATA PROCESSING INC Annual Report, Year Ended Jun 30, 2024

Automatic Data Processing, Inc. (ADP) reported a solid fiscal year 2024, demonstrating 7% revenue growth to $19.2 billion, driven by new client acquisition, pricing increases, and strong client retention. The company highlighted its strategic priorities, focusing on leading with best-in-class HCM technology, providing unmatched expertise and outsourcing solutions, and leveraging its global scale. Investments in artificial intelligence, particularly the launch of ADP Assist, are a key area of innovation, aimed at enhancing client and employee experiences. ADP's financial health remains strong, with significant cash flow generation and a commitment to shareholder returns through dividends and share repurchases, totaling $3.4 billion in fiscal year 2024.

Aug 7, 2024 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Jul 31, 2024)

ADP reported a strong close to fiscal 2024 (year ended June 30, 2024), with full-year revenues up 7% to $19.2 billion (6% organic constant currency), net earnings up 10% to $3.8 billion, and diluted EPS up 11% to $9.10 (adjusted diluted EPS up 12% to $9.18). Adjusted EBIT rose 9% to $4.9 billion, with adjusted EBIT margin expanding 70 basis points to 25.5%. Employer Services, the core segment, grew revenue 8% for the year and expanded segment margin by 210 basis points to 35.1%, while new business bookings rose 7% to $2.0 billion. PEO Services was a weaker spot, with segment margin down 150 basis points to 14.8% and fourth-quarter margin down 240 basis points, though segment revenue still grew 4%. Interest income on client funds was a major contributor, rising 26% to $1.0 billion for the year as the average yield climbed to 2.9%. Investors should note that this tailwind is rate-sensitive, and the company's own outlook assumes that yield rises further to about 3.1% in fiscal 2025. Fiscal 2024 results also included about $42 million of pre-tax severance charges tied to a company-wide workforce optimization effort, which were excluded from adjusted figures, and client revenue retention edged down to 92.0% from 92.2%. For fiscal 2025, ADP guided to revenue growth of 5% to 6%, adjusted EBIT margin expansion of 60 to 80 basis points, and adjusted diluted EPS growth of 8% to 10%. Employer Services revenue growth is expected at 5% to 6% with margin up 100 to 120 basis points, while PEO Services margin is expected to decline 90 to 110 basis points. Management's outlook implies continued solid growth with margin expansion, though the guidance for client funds interest income and the PEO margin pressure are key items to monitor.

Jul 31, 2024 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Material Agreement (Jun 28, 2024)

Automatic Data Processing, Inc. (ADP) announced on June 28, 2024, the establishment of two new credit facilities totaling $8.05 billion, significantly bolstering its liquidity and financial flexibility. These new facilities replace existing credit lines and include a $4.55 billion 364-day facility and a $3.5 billion five-year facility. The five-year facility features an accordion option allowing for an additional $500 million in commitments, providing further capacity for future needs. These credit agreements are crucial for ADP's ongoing operations, general corporate purposes, and potentially for strategic initiatives. The company's ability to secure these substantial credit lines from a diverse group of lenders, led by major financial institutions like JPMorgan Chase Bank, N.A., signals strong confidence in its financial stability and operational capacity. The terms, including interest rates based on SOFR or prime rates and commitment fees, are structured to provide flexibility while reflecting current market conditions.

Jun 28, 2024 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Executive Changes (May 9, 2024)

Automatic Data Processing, Inc. (ADP) filed an 8-K on May 9, 2024, announcing a key executive change in its finance department. Jonathan Lehberger has been appointed as the new Corporate Controller and principal accounting officer, effective July 1, 2024. This transition involves Mr. Lehberger succeeding Brock Albinson, who will be stepping down from the role on June 30, 2024. Mr. Lehberger brings extensive experience within ADP, having held various finance leadership positions since joining the company in 2004. His recent roles include Senior Vice President of Financial Strategy and Planning, and CFO for Small Business Services and ADP Canada. This appointment signals continuity and internal promotion within ADP's financial leadership team, likely reassuring investors of a smooth handover and continued financial oversight.

May 9, 2024 10-Q

AUTOMATIC DATA PROCESSING INC Quarterly Report for Q3 Ended Mar 31, 2024

Automatic Data Processing, Inc. (ADP) reported strong financial results for the third quarter and the first nine months of fiscal year 2024. Total revenues increased by 7% year-over-year for both periods, driven by new business, client retention, pricing increases, and growth in interest on client funds. Net earnings saw a significant increase of 14% for the quarter and 11% for the nine months. Diluted Earnings Per Share (EPS) also grew, rising 15% quarterly and 12% year-to-date. The company's strategic priorities, including enhancing its Human Capital Management (HCM) technology with AI and leveraging global scale, are progressing well. ADP continues to demonstrate a strong financial position and robust cash flow generation, enabling consistent returns to shareholders through dividends and share repurchases.

May 2, 2024 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (May 1, 2024)

ADP (Nasdaq: ADP) reported third quarter fiscal 2024 results (quarter ended March 31, 2024) that beat on the top and bottom line and reinforced its full-year outlook. Revenue rose 7% to $5.3 billion (6% organic constant currency), net earnings grew 14% to $1.2 billion, and diluted EPS increased 15% to $2.88 (adjusted diluted EPS up 14% to $2.88). Adjusted EBIT margin expanded 140 basis points to 29.3%, driven largely by Employer Services, where segment margin rose 230 basis points to 39.6% and revenue grew 8%. PEO Services was the weak spot: revenue grew 5%, but segment margin fell 220 basis points to 14.2%, and the company expects PEO margin to decline 140 to 120 basis points for the full year. The most important investor-facing item is the raised Employer Services margin outlook (now up 180 to 190 basis points, from 150 to 160) and the raised client funds interest outlook. Interest on funds held for clients rose 29% to $321 million, reflecting a 50 basis point increase in average yield to 3.1% and 6% growth in average client balances to $41.7 billion. Management now expects fiscal 2024 client funds interest revenue of $1.00 to $1.01 billion and a total client funds extended strategy contribution of $850 to $860 million, both higher than prior guidance. Consolidated guidance for revenue growth (6% to 7%), adjusted EBIT margin expansion (60 to 70 basis points), and adjusted diluted EPS growth (10% to 12%) was reaffirmed. The balance sheet and cash flow show growing scale in client funds, with funds held for clients rising to $47.9 billion from $36.3 billion at June 30, 2023, offset by a matching increase in client funds obligations. Nine-month operating cash flow was $2.86 billion, down from $3.02 billion, largely because of higher receivables and deferred contract cost investment. Cash and equivalents increased to $3.3 billion, and the company repurchased $796 million of stock and paid $1.6 billion in dividends during the nine months. Investors should note that a significant share of earnings growth comes from interest income on client funds, which is sensitive to interest rate movements.

May 1, 2024 10-Q

AUTOMATIC DATA PROCESSING INC Quarterly Report for Q2 Ended Dec 31, 2023

Automatic Data Processing, Inc. (ADP) reported solid financial results for the second quarter and first half of fiscal year 2024, ending December 31, 2023. Total revenues grew 6% year-over-year for the quarter and 7% for the six-month period, reaching $4.7 billion and $9.2 billion respectively. This growth was driven by new business, strong client retention, pricing adjustments, and increased interest income on client funds, which benefited from higher average interest rates. Profitability also showed improvement, with earnings before income taxes (EBIT) increasing by 8% for both periods. The company highlighted its strategic focus on best-in-class HCM technology, expert solutions, and global scale, noting progress in rolling out AI-powered features like ADP Assist to enhance client experience and HR productivity. ADP returned $1.5 billion to shareholders through dividends and share repurchases, underscoring its commitment to capital return while maintaining a solid financial position and liquidity.

Feb 1, 2024 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Jan 31, 2024)

ADP reported fiscal second-quarter 2024 results (quarter ended December 31, 2023) that showed steady top-line and earnings growth. Total revenues rose 6% to $4.67 billion (6% organic constant currency), net earnings increased 8% to $878 million, and diluted EPS rose 9% to $2.13. Adjusted EBIT grew 7% to $1.15 billion with a 20 basis point margin expansion to 24.6%. Employer Services was the main driver, with revenue up 8% and segment margin up 170 basis points to 34.0%, while PEO Services revenue grew 3% and its segment margin fell 50 basis points to 16.5%. Management cited record bookings and strong client retention. Interest on funds held for clients rose 20% to $225 million, supported by a 50 basis point increase in average yield to 2.8%, even as average client fund balances declined 2% to $32.6 billion. Management raised the low end of its fiscal 2024 adjusted EBIT margin expansion outlook to 60 to 70 basis points from 60 to 80, narrowed the Employer Services margin outlook to 150 to 160 basis points, and tightened the client funds interest revenue forecast to $985 to $995 million. Revenue growth (6% to 7%) and adjusted diluted EPS growth (10% to 12%) guidance were reaffirmed. For investors, the quarter reflects solid execution with EPS growth outpacing revenue growth, but the outlook is sensitive to interest rates. A meaningful share of earnings depends on client funds interest income and the extended investment strategy, and total interest expense rose sharply from $57 million to $105 million year over year. The PEO margin pressure and the expected modest decline in client revenue retention are the main items to monitor.

Jan 31, 2024 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Executive Changes (Jan 10, 2024)

ADP filed an 8-K on January 10, 2024 announcing a board leadership transition rather than a financial or operational event. Thomas J. Lynch, an independent director since 2018 and former TE Connectivity CEO, will become independent non-executive Board Chair effective January 31, 2024, succeeding Carlos A. Rodriguez, who has served as Executive Chair since January 1, 2023. Rodriguez will remain on the Board as a non-employee director and will forgo non-employee director compensation until the 2024 annual meeting of stockholders. The filing also details a set of committee reassignments effective the same date. John P. Jones steps down as Lead Independent Director to join the Compensation and Management Development Committee (CMDC) and Nominating/Corporate Governance Committee (NCGC), Scott F. Powers becomes CMDC Chair, Nazzic S. Keene moves to chair the NCGC, and Peter Bisson shifts from the NCGC to the Audit Committee. The separation of the Chair and CEO roles, with an independent Chair in place of an executive Chair, is generally viewed as a governance positive, and the orderly handoff is consistent with management's stated focus on succession planning. For investors, the filing contains no changes to guidance, financial results, or CEO Maria Black's role. Its significance lies in board governance: the transition moves ADP toward a more independent board structure following the CEO transition, and the 8-K provides no indication of disagreement or dispute behind the change.

Jan 10, 2024 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Shareholder Vote Results (Nov 14, 2023)

This 8-K filing from Automatic Data Processing, Inc. (ADP) details the outcomes of its Annual Meeting of Stockholders held on November 7, 2023. The primary focus for investors is the strong shareholder support for the company's nominees for the Board of Directors and the ratification of its independent auditor. All director nominees received a significant majority of "For" votes, indicating shareholder confidence in the current leadership and governance. Additionally, the company's executive compensation plan received advisory approval, and shareholders indicated a preference for annual "Say When on Pay" votes.

Nov 14, 2023 10-Q

AUTOMATIC DATA PROCESSING INC Quarterly Report for Q1 Ended Sep 30, 2023

Automatic Data Processing, Inc. (ADP) reported a solid first quarter for fiscal year 2024, with total revenues reaching $4.51 billion, a 7% increase year-over-year. This growth was driven by new business, strong client retention, increased pricing, and higher interest income on client funds, reflecting the company's robust business model and strategic priorities. Net earnings also saw a healthy increase of 10% to $859.4 million, translating to diluted EPS of $2.08, up from $1.87 in the prior year period. The company continues to invest in its best-in-class Human Capital Management (HCM) technology, with a focus on embedding generative AI features into its products and services, such as ADP Assist and Agent Assist. This strategic focus, combined with strong operational execution, positions ADP for continued growth and value creation for its shareholders. The company also demonstrated a commitment to shareholder returns, with $0.8 billion in cash returned through dividends and share repurchases.

Nov 2, 2023 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Oct 25, 2023)

ADP reported first quarter fiscal 2024 results (quarter ended September 30, 2023) that beat its own expectations on revenue and margin. Consolidated revenues rose 7% to $4.5 billion (7% organic constant currency), net earnings rose 10% to $859 million, and diluted EPS rose 11% to $2.08, or 12% on an adjusted basis. Adjusted EBIT grew 7% to $1.1 billion, with the adjusted EBIT margin up 10 basis points to 24.2%. Management attributed the strength to solid new business bookings, strong client revenue retention, and higher client funds interest revenue. The segment picture was mixed. Employer Services revenue grew 9% and its segment margin expanded 220 basis points to 33.1%, while U.S. pays per control grew 2%. PEO Services revenue grew 3% and its segment margin fell 90 basis points to 15.2%. Interest on funds held for clients jumped 43% to $202 million, driven by a 70 basis point rise in average yield to 2.6% on roughly $31.1 billion of average balances. Investors should note that a large share of profit growth depends on this rate-sensitive interest income, and that corporate interest expense rose sharply due to short-term financing costs tied to the client funds strategy. ADP maintained its fiscal 2024 consolidated outlook for revenue growth (6% to 7%), adjusted EBIT margin expansion (60 to 80 basis points), and adjusted diluted EPS growth (10% to 12%). It raised the Employer Services margin outlook to 150 to 170 basis points from 130 to 150 basis points, and lowered the PEO margin outlook to a decline of 100 to 50 basis points from a decline of 40 to 20 basis points. It also raised its client funds interest revenue outlook to $990 to $1,010 million, reflecting higher expected yields. This 8-K furnished the earnings release as Exhibit 99 under Item 2.02 and did not itself contain new financial disclosures beyond that release.

Oct 25, 2023 10-K

AUTOMATIC DATA PROCESSING INC Annual Report, Year Ended Jun 30, 2023

Automatic Data Processing, Inc. (ADP) reported strong financial performance for the fiscal year ended June 30, 2023, characterized by robust revenue growth and increased profitability. The company demonstrated significant revenue expansion, with a 9% increase as reported and a 10% increase on an organic constant currency basis. This growth was driven by new business bookings, strong client retention, and a notable increase in interest income from funds held for clients, benefiting from higher interest rates. ADP's strategic focus on best-in-class HCM technology, unparalleled expertise and outsourcing, and leveraging global scale continues to yield positive results. The company surpassed the one million client milestone and saw improvements in key metrics like Employer Services client retention, reaching a record high. Profitability also saw a healthy increase, with diluted earnings per share growing by 17%. The company remains committed to shareholder returns through dividends and share repurchases, underscoring a solid financial position and a positive outlook for continued growth.

Aug 3, 2023 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Jul 26, 2023)

ADP reported fiscal 2023 (year ended June 30, 2023) results that were strong across the board. Total revenues rose 9% to $18.0 billion (10% organic constant currency), net earnings rose 16% to $3.4 billion, and diluted EPS rose 17% to $8.21 (adjusted diluted EPS $8.23). Adjusted EBIT grew 15% to $4.5 billion, with adjusted EBIT margin expanding 130 basis points to 24.8%. Fourth-quarter results were particularly strong, with revenue up 8% to $4.5 billion, net earnings up 24%, and adjusted EBIT margin up 270 basis points to 22.5%. Employer Services drove much of the growth, with segment revenue up 10% for the year, new business bookings up 10% to $1.9 billion, and segment margin expanding 190 basis points. PEO Services revenue grew 8% for the year, though its fourth-quarter growth slowed to 4%. A substantial part of earnings growth came from the client funds extended investment strategy. Interest on funds held for clients rose 80% to $813 million for the year, and the net impact from the strategy reached $730 million. Management attributes this to higher interest rates, with the average yield on client funds rising to 2.4%. Investors should note that this interest income is sensitive to rate movements and is a meaningful share of profit growth. For fiscal 2024, ADP guided to revenue growth of 6% to 7%, adjusted EBIT margin expansion of 60 to 80 basis points, and adjusted diluted EPS growth of 10% to 12%. Employer Services revenue is expected to grow 7% to 8%, while PEO Services revenue is expected to grow 3% to 5%. The client funds interest revenue outlook is $955 to $975 million, with a projected net strategy contribution of $815 to $835 million. The filing is an earnings release furnished under Item 2.02 and does not itself include new material corporate events beyond these results and guidance.

Jul 26, 2023 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Material Agreement (Jun 30, 2023)

Automatic Data Processing, Inc. (ADP) has announced a significant update to its credit facilities as of June 30, 2023. The company has entered into two new credit agreements: a $4.25 billion 364-day facility and a $2.25 billion five-year facility. These new facilities replace existing credit lines that were terminated on the same date. The 364-day facility allows for potential extension by one year, while the five-year facility has an accordion feature permitting an increase of up to $500 million and also offers the option for annual commitment extensions. In addition to establishing new credit lines, ADP also amended its existing five-year credit agreement to transition from LIBOR-based interest rates to SOFR-based rates, along with other technical adjustments. These credit facilities provide ADP with substantial liquidity for general corporate purposes, offering various borrowing options including competitive advance and revolving credit facilities. The terms include standard covenants and events of default, with major financial institutions acting as administrative and syndication agents.

Jun 30, 2023 10-Q

AUTOMATIC DATA PROCESSING INC Quarterly Report for Q3 Ended Mar 31, 2023

Automatic Data Processing, Inc. (ADP) reported a strong third quarter for fiscal year 2023, demonstrating robust financial performance and strategic execution. Total revenues grew by 9% year-over-year, reaching $4.93 billion, driven by solid client retention, new business bookings, and a significant increase in interest earned on client funds due to higher interest rates and balances. Earnings Before Income Taxes (EBIT) saw a healthy 15% increase, reflecting improved operational efficiency and margin expansion. The company continued to execute its modernization strategy, with ongoing roll-out of its new user experience across key platforms and strong sales performance. ADP's Employer Services segment showed robust revenue growth and margin improvement, while the PEO Services segment also delivered solid revenue increases and margin expansion. The company's financial position remains solid, supported by strong cash flows and a commitment to shareholder returns through dividends and share repurchases.

May 1, 2023 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Apr 26, 2023)

ADP reported fiscal third-quarter 2023 results (quarter ended March 31, 2023) that exceeded the top-line and profitability growth rates the company has been delivering. Revenues rose 9% year over year to $4.9 billion (10% on an organic constant currency basis), net earnings increased 12% to $1.04 billion, and adjusted EBIT grew 14% to $1.37 billion, lifting the adjusted EBIT margin 110 basis points to 27.8%. Diluted EPS rose 14% to $2.51 (adjusted diluted EPS $2.52). Growth was driven by Employer Services, where revenue grew 11% and segment margin expanded 80 basis points, and PEO Services, where revenue grew 5% and segment margin expanded 140 basis points. A significant contributor was interest on funds held for clients, which more than doubled (up 111%) to $249 million as average client yields rose to 2.5%. Investors should note that a meaningful share of the earnings growth is rate-driven and therefore sensitive to the interest rate environment. management raised its full-year fiscal 2023 guidance for adjusted diluted EPS growth to 16% to 17% (from 15% to 17%). The updated outlook also calls for revenue growth of 8% to 9%, adjusted EBIT margin expansion of 125 to 150 basis points, and an adjusted effective tax rate of about 23%. Client funds interest revenue is now expected at $790 to $800 million, and the net contribution from the client funds extended investment strategy at $710 to $720 million. Employer Services client revenue retention guidance was tightened to a decline of 10 to 20 basis points, and the company flagged continued investment in its modernization and transformation initiatives. Balance sheet items to monitor include the sharp decline in client funds obligations and funds held for clients, which fell to $47.8 billion and $45.8 billion, respectively, from June 2022 levels. Corporate share repurchases were $818 million year to date, and dividends paid were $1.39 billion. Overall, the quarter reflects solid operating execution and a raised EPS outlook, with the earnings quality question centered on how much of the growth comes from interest income on client funds versus core HCM operations.

Apr 26, 2023 10-Q

AUTOMATIC DATA PROCESSING INC Quarterly Report for Q2 Ended Dec 31, 2022

Automatic Data Processing, Inc. (ADP) reported solid financial results for the second quarter and first half of fiscal year 2023, ending December 31, 2022. Total revenues grew by 9% year-over-year for the quarter and 10% for the six-month period, demonstrating continued client retention and new business growth. A significant contributor to this growth was a substantial increase in interest income on funds held for clients, driven by higher average client fund balances and elevated interest rates. Profitability also showed strength, with Earnings Before Income Taxes (EBIT) increasing by 16% for the quarter and 14% for the six months. The company highlighted operating efficiencies and strategic investments in sales and product development. Diluted Earnings Per Share (EPS) saw a robust increase of 18% for the quarter and 16% for the six-month period, reflecting both earnings growth and a reduction in outstanding shares due to ongoing share repurchases. The company maintains a strong financial position with ample liquidity and reaffirmed its commitment to shareholder returns through dividends and share buybacks.

Feb 2, 2023 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Jan 25, 2023)

Automatic Data Processing (ADP) reported fiscal Q2 2023 results (quarter ended December 31, 2022) that were solid across the board. Revenues rose 9% to $4.39 billion (10% organic constant currency), net earnings grew 17% to $813.1 million, and diluted EPS increased 18% to $1.95 (adjusted diluted EPS up 19% to $1.96). Adjusted EBIT rose 15% to $1.07 billion, with adjusted EBIT margin expanding 120 basis points to 24.3%. Both segments contributed: Employer Services revenue grew 8% with segment margin up 170 basis points, and PEO Services revenue grew 11% with segment margin up 130 basis points. Growth in U.S. pays per control (5%) and client revenue retention were cited as supporting factors. A large share of the earnings growth came from client funds interest. Interest on funds held for clients rose 77% to $187 million, driven by a 90 basis point increase in the average client funds yield to 2.2% and a 4% rise in average balances to $33.4 billion. Investors should note that this interest income is sensitive to interest rate movements, and that the company also carries higher short-term financing costs tied to its extended investment strategy, with interest expense more than tripling to $57 million. ADP maintained its full-year fiscal 2023 revenue growth guidance of 8% to 9% and narrowed adjusted diluted EPS growth to 15% to 17%, unchanged from the prior outlook. Within the outlook, Employer Services revenue guidance was raised to 8% to 9% from 7% to 8%, and the Employer Services margin expansion range was maintained at 200 to 225 basis points. PEO Services revenue guidance was lowered to 8% to 9% from 10% to 12%, and average worksite employee growth was trimmed to 6% to 7%. Management also raised its client funds interest revenue outlook modestly to $790 to $800 million, and the net contribution from the client funds extended strategy was lowered to $710 to $720 million.

Jan 25, 2023 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Executive Changes (Nov 16, 2022)

Automatic Data Processing, Inc. (ADP) filed an 8-K on November 16, 2022, under Item 5.02 to disclose a leadership change. Don Weinstein, Corporate Vice President, Global Product and Technology, will step down from the company effective March 31, 2023. The filing describes this as a planned, orderly transition of duties, and Weinstein will remain a corporate officer during that period. For investors, this is a routine executive departure rather than a material change in financial condition or operations. The filing contains no financial results, guidance, or information about a successor, restructuring, or charges. The filing does not state the reason for the departure. The main investor consideration is continuity in ADP's product and technology organization, which is central to its cloud-based payroll, HR, and benefits platforms. Investors may want to watch for an announced successor or reorganization of the global product and technology function before the March 2023 effective date, as well as any commentary on the transition on future earnings calls.

Nov 16, 2022 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Shareholder Vote Results (Nov 14, 2022)

This 8-K filing from Automatic Data Processing, Inc. (ADP) reports the outcomes of their Annual Meeting of Stockholders held on November 9, 2022. The key takeaway for investors is the overwhelmingly positive shareholder support for the company's leadership and operational decisions. All director nominees were elected with significant majority votes, reflecting strong confidence in the current board's governance. Furthermore, shareholders approved the company's executive compensation on an advisory basis and ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm, indicating general satisfaction with financial oversight and reporting. In addition to governance and financial reporting approvals, the amendment to the Employees' Savings-Stock Purchase Plan was also approved by a substantial margin. The high turnout of shares present, either in person or by proxy, and the decisive votes on all proposals suggest a well-aligned shareholder base that is supportive of ADP's strategic direction and management's execution. This filing provides reassurance regarding corporate governance and shareholder engagement.

Nov 14, 2022 10-Q

AUTOMATIC DATA PROCESSING INC Quarterly Report for Q1 Ended Sep 30, 2022

Automatic Data Processing, Inc. (ADP) reported solid financial results for the first quarter of fiscal year 2023, ending September 30, 2022. Total revenues grew by 10% year-over-year to $4.22 billion, driven by strong performance across both its Employer Services and PEO Services segments. Net earnings increased by 11% to $779.0 million, and diluted earnings per share (EPS) rose by 13% to $1.87, demonstrating effective operational execution and growth in its core business. The company's strategic initiatives, including the rollout of a new unified user experience and enhancements to its mobile app, are progressing well and contributing to its competitive positioning. ADP continues to focus on innovation within its Human Capital Management (HCM) solutions, evidenced by recent awards and product launches. The company maintains a strong financial position with robust cash flows, enabling continued investment in the business and returning capital to shareholders through dividends and share repurchases.

Nov 2, 2022 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Executive Changes (Oct 26, 2022)

On October 26, 2022, ADP announced a planned CEO succession. President Maria Black will become President and Chief Executive Officer effective January 1, 2023, and will also join the Board. Current CEO Carlos Rodriguez, who has led the company since November 2011, will become Executive Chair. John P. Jones, the current Non-Executive Chairman, will become an independent Lead Director on the same date. The Board describes the structure as intended to ensure a seamless transition. The filing reports no change to financial results or guidance. The compensation terms for both executives are disclosed. Black's base salary will be $1,100,000 with a 200% target bonus. Her expected fiscal 2023 total target equity value is $12,225,000, which includes a pro-rated $3,300,000 grant on January 1, 2023, incremental to a $5,625,000 award granted September 1, 2022. Rodriguez's base salary will be $605,400 with a 150% target bonus, and he will continue in the long-term incentive program. Both remain subject to the clawback policy, and Black faces a six-times-salary stock ownership requirement. For investors, the key takeaways are continuity and internal succession. Black has been at ADP since 1996 and has held several senior roles, and Rodriguez remains involved as Executive Chair, which should ease the handoff. The filing does not discuss strategy changes, so investors should watch for commentary on strategy and growth priorities in upcoming earnings calls.

Oct 26, 2022 8-K

AUTOMATIC DATA PROCESSING INC 8-K Report, Financial Results (Oct 26, 2022)

ADP reported first quarter fiscal 2023 results (quarter ended September 30, 2022) on October 26, 2022, showing broad-based growth. Total revenues rose 10% to $4.22 billion (11% on an organic constant currency basis), net earnings increased 11% to $779 million, and diluted EPS rose 13% to $1.87. Adjusted EBIT grew 11% to $1.0 billion, with adjusted EBIT margin expanding 30 basis points to 24.1%. Management highlighted that ADP exceeded one million clients during the quarter. Employer Services revenue grew 9% and PEO Services revenue grew 13%, with average PEO worksite employees up 12% to about 704,000. The key driver of profitability was client funds interest income, which rose 39% to $141 million on a 40 basis point increase in average yield to 1.9%. Management raised its fiscal 2023 outlook for revenue growth (now 8% to 9%, up from 7% to 9%), adjusted EBIT margin expansion (now 125 to 150 basis points, up from 100 to 125), and adjusted diluted EPS growth (now 15% to 17%, up from 13% to 16%). The client funds interest revenue outlook was also lifted to $790 to $810 million, reflecting rising rates. Investors should weigh the strong quarter and raised guidance against several cautions. Interest expense more than doubled to $51.2 million, driven by short-term financing for the client funds extended investment strategy, and the Employer Services client revenue retention outlook was left unchanged at a decline of 25 to 50 basis points. Much of the earnings uplift depends on interest rate movements rather than operating growth alone. Management also noted the outlook could be affected if macroeconomic trends weaken. Total stockholders' equity fell sharply to $2.6 billion, largely due to a large accumulated other comprehensive loss, though this mainly reflects the mechanics of the client funds investment portfolio rather than operating weakness.

Oct 26, 2022