Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
ADP delivered another year of broad-based growth in fiscal 2026, powered by its HCM technology leadership and expanding AI capabilities. Organic constant currency revenue rose 6%, while adjusted EBIT margin expanded 80 basis points, reflecting operating leverage and higher client funds interest income. The company returned $4.7 billion to shareholders through dividends and buybacks. However, PEO Services margin decreased, and a business alignment program charge impacted GAAP earnings.
Revenue
$21.95B
+6.74% YoY
EPS (Diluted)
$10.94
+9.62% YoY
Filed · Source: SEC EDGAR 10-K filing · Audit Opinion: unqualified (Source: Report of Independent Registered Public Accounting Firm)
Next ADP earnings expected
Source: SEC XBRL
Automatic Data Processing (ADP) reported FY2026 revenue of $21.95B, up 6.7% year over year. Operating cash flow was $5.44B, up 10.2% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 2.64 | 2.62 | Beat +0.7% |
| Mar 2026 | 3.38 | 3.33 | Beat +1.7% |
| Dec 2025 | 2.62 | 2.60 | Beat +0.8% |
| Sep 2025 | 2.49 | 2.46 | Beat +1.1% |
Reported EPS of $2.64 versus the $2.62 analyst consensus — a +0.7% beat for Jun 2026.
2 reported segments · SEC XBRL
Segment revenue totals $21.96B; with -$12.1M of reconciling items (corporate, unallocated and eliminations) it ties to the $21.95B of consolidated revenue on the income statement.
Profit above is reported as pre-tax income, the measure ADP itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-K Item 7 of this filing
ADP Assist became increasingly embedded in clients' workflows, delivering meaningful time savings and improved accuracy. AI-powered HCM agents were expanded across payroll, benefits, HR, and compliance solutions, now accessible to nearly all of ADP's more than 1.1 million clients. A dedicated space for partners' AI agents was launched on ADP Marketplace, further building the AI ecosystem.
Source: 10-K Item 7 MD&A
Employer Services new business bookings grew 6%, and client revenue retention was 92.1%. Pays per control increased 1%, indicating stable employment levels among clients. The segment also benefited from a $164.1 million increase in interest on client funds.
Source: 10-K Item 7 MD&A
Adjusted EBIT margin expanded 80 basis points to 26.8%, driven by contributions from client funds interest, operating efficiencies, and lower amortization of client contracts and lists. These were partially offset by higher selling and marketing expenses.
Source: 10-K Item 7 MD&A
In the fourth quarter of fiscal 2026, ADP incurred a $91.1 million charge for a corporate-led business alignment program designed to streamline the organizational structure. The charge included $89.1 million in severance costs and $2.0 million in strategic project costs.
Source: 10-K Item 7 MD&A
ADP returned $4.7 billion to shareholders in fiscal 2026, consisting of $2.6 billion in dividends and $2.1 billion in share repurchases. The company repurchased 8.6 million shares at an average price of $242.92, up from 4.4 million shares in the prior year.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 4 high, 1 medium, 0 low
As a co-employer and Certified PEO, ADP bears employer liabilities for worksite employees, including wage, tax, and benefit obligations. Clients may fail to remit required funds, especially during financial disruptions, and changes in ERISA or other regulations could force modifications to the PEO business model, potentially resulting in significant costs or fines.
Source: 10-K Item 1A
New and proposed laws such as GDPR, CPRA, and the EU AI Act impose complex compliance requirements on ADP's collection and use of personal data and AI. Noncompliance could lead to regulatory penalties, litigation, and reputational damage, while also constraining ADP's ability to leverage data and AI for client solutions.
Source: 10-K Item 1A
ADP is a frequent target of sophisticated cyberattacks, which are increasing in frequency and complexity, including those leveraging AI. A successful breach could compromise sensitive client and employee data, disrupt operations, and result in financial loss, regulatory sanctions, and erosion of client trust, potentially causing clients to switch providers.
Source: 10-K Item 1A
ADP handles massive client funds for payroll and tax payments; any failure to properly or timely remit taxes or transmit funds could result in fines, penalties, and interest for which ADP could be responsible. Operational errors or processing delays could materially harm ADP's reputation and financial condition.
Source: 10-K Item 1A
ADP may face claims from third parties alleging that its products or AI-driven features infringe on their intellectual property. Such litigation could result in costly settlements, licensing requirements, or operational changes, and could harm ADP's competitive position.
Source: 10-K Item 1A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 21.95 $B | 20.56 $B | +6.74% |
Cost of Revenue $B | 11.76 $B | 11.10 $B | +5.97% |
Net Income $B | 4.41 $B | 4.08 $B | +8.18% |
EPS (Basic) $ | 10.97 $ | 10.02 $ | +9.48% |
EPS (Diluted) $ | 10.94 $ | 9.98 $ | +9.62% |
R&D Expense $B | 1.03 $B | 0.99 $B | +4.07% |
SG&A Expense $B | 4.41 $B | 4.05 $B | +8.80% |
Answers draw on this SEC filing and the data on this page
ADP delivered solid Q3 FY2026 results with revenue of $5.94B (+7.0% YoY) and net income of $1.36B (+8.8% YoY), driven by continued payroll and HCM demand, while EPS grew 10.4% to $3.39 on a basic basis.
ADP delivered solid Q2 FY2026 results with revenue up 6.2% YoY to $5.36B and net income surging 10.3% to $1.06B, reflecting continued operating leverage and disciplined cost management.
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