ADP · 10-K · 2026A

AUTOMATIC DATA PROCESSING INC

Filed 2026-08-05 · Technology · View original filing on EDGAR

Ranked Events

• Capital Return ProgramImportance 81 · Surprise 64
  ADP returned $4.7 billion to shareholders in fiscal 2026 through $2.6 billion of dividends and $2.1 billion of share repurchases. The company repurchased 8.6 million shares in fiscal 2026, compared with 4.4 million…
• Market Demand TrendsImportance 49 · Surprise 32
  ADP reported fiscal 2026 revenue growth of 7% to $21,947.4 million, or 6% on an organic constant-currency basis, supported by new business, strong client retention, pricing, and higher client-funds interest revenue.…
• Liquidity and Cash PositionImportance 49 · Surprise 6
  Cash and cash equivalents totaled $4.2 billion at June 30, 2026, primarily invested in time deposits and money market funds. ADP had $11.7 billion of committed credit facilities available for corporate liquidity.…
• Segment Revenue PerformanceImportance 49 · Surprise 32
  Employer Services revenue increased to $14,831.4 million from $13,883.1 million, supported by new business, retention, pricing, a 1% foreign-currency benefit, and $164.1 million of higher client-funds interest.…
• Margin DriversImportance 49 · Surprise 32
  GAAP EBIT increased to $5,730.3 million from $5,310.1 million, and EBIT margin expanded 30 basis points to 26.1%. Adjusted EBIT increased to $5,874.6 million from $5,347.1 million, while adjusted EBIT margin expanded…
• Revenue Performance and MixImportance 49 · Surprise 32
  Fiscal 2026 total revenue increased 7% year over year to $21,947.4 million, or 6% on an organic constant-currency basis. Revenue growth reflected new business bookings, client retention, pricing, a 1% foreign-currency…
• Interest Rate EnvironmentImportance 48 · Surprise 40
  Interest on funds held for clients increased $165.7 million to $1,354.8 million in fiscal 2026. Average client funds balances increased 7.4% to $40.4 billion, while the average interest rate earned rose to 3.4% from…
• Operating Expense TrendsImportance 42 · Surprise 14
  Total expenses increased to $16,627.7 million in fiscal 2026 from $15,604.9 million, with operating expenses rising to $10,240.6 million from $9,622.7 million. PEO zero-margin benefits pass-through costs increased…
• Income Tax Rate ChangesImportance 36 · Surprise 14
  ADP’s effective tax rate decreased to 23.0% in fiscal 2026 from 23.2% in fiscal 2025. The 20-basis-point reduction reflected lower uncertain tax positions and higher tax credits. A lower benefit from prior-year…
• Headcount / RestructuringImportance 34 · Surprise 42
  ADP recorded a $91.1 million charge in the fourth quarter of fiscal 2026 for a corporate-led business alignment program. The program included $89.1 million of severance costs and $2.0 million of strategic project…
• AI Adoption RecognitionImportance 31 · Surprise 42
  ADP expanded ADP Assist agents across payroll, benefits, HR, and compliance solutions beginning in January 2026. The agents became accessible to nearly all of ADP’s more than 1.1 million clients, embedding AI into…
• Partner Ecosystem ExpansionImportance 31 · Surprise 42
  ADP launched a dedicated space within ADP Marketplace for partners’ AI agents, extending its partner ecosystem around HCM automation. The initiative complements the expansion of ADP Assist agents across payroll,…
• Products and TechnologyImportance 31 · Surprise 42
  ADP expanded ADP Assist agents across payroll, benefits, HR, and compliance solutions, making AI-powered HCM agents available to nearly all of its more than 1.1 million clients. ADP Assist became increasingly embedded…
• FX / Currency HeadwindsImportance 24 · Surprise 14
  Foreign currency contributed a 1% year-over-year increase to consolidated fiscal 2026 revenue as reported. Management’s organic constant-currency measure excludes foreign-exchange effects and showed 6% revenue growth…

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