ADP · 8-K · 20260729PR000025

Margin Drivers

AUTOMATIC DATA PROCESSING INC · 2026-07-29 · Importance 70 · Surprise 40 · No source text

Fiscal 2026 adjusted EBIT increased 10% to $5.875 billion, and adjusted EBIT margin expanded 80 basis points to 26.8%. Fourth-quarter adjusted EBIT increased 13% to $1.372 billion, with adjusted EBIT margin up 140 basis points to 25.1%. Employer Services margin increased 60 basis points for the year, while PEO Services margin decreased 110 basis points. Fiscal 2027 outlook targets adjusted EBIT margin expansion of 70 to 90 basis points.

Key facts

• Adjusted net earnings increased 10% to $4.5 billion for the year source
• Adjusted EBIT increased 10% to $5.9 billion for the year source
• Fourth quarter adjusted EBIT increased 13% to $1.4 billion and adjusted EBIT margin increased 140 basis points to 25.1% source
• Adjusted EBIT margin increased 80 basis points to 26.8% for the year source
• Employer Services segment margin increased 90 basis points for the fourth quarter and increased 60 basis points for the fiscal year source
• PEO Services segment margin decreased 100 basis points for the fourth quarter and decreased 110 basis points for the fiscal year source
• Adjusted diluted EPS increased 11% to $11.12 for the year source

Impact estimates