ADP · 10-Q · 2026Q3

AUTOMATIC DATA PROCESSING INC

Filed 2026-10-30 · Technology · View original filing on EDGAR

Ranked Events

• Capital Return ProgramImportance 81 · Surprise 64
  ADP returned $1.5 billion to shareholders during the three months ended September 30, 2026, comprising $0.7 billion of dividends and $0.8 billion of share repurchases. The company repurchased 2.9 million shares in the…
• Interest Rate EnvironmentImportance 46 · Surprise 56
  For the three months ended September 30, 2026, interest revenue on funds held for clients increased $42.5 million year over year to $329.3 million, exceeding the filing’s $165 million revenue materiality threshold. ADP…
• Market Demand TrendsImportance 43 · Surprise 32
  ADP reported 6% revenue growth, also 6% on an organic constant-currency basis, attributing the increase to new business started from bookings, strong client retention, and pricing increases. U.S. pays per control, a…
• Revenue Performance and MixImportance 43 · Surprise 32
  Revenue for the three months ended September 30, 2026 increased 6% to $5,490.7 million from $5,175.2 million, including 6% growth on an organic constant-currency basis. The $315.5 million increase reflected new…
• Interest Income TrendsImportance 40 · Surprise 56
  Interest income on corporate funds increased $32.2 million, from $101.5 million of income in the prior-year quarter to $133.7 million in the three months ended September 30, 2026. The increase reflected average…
• Margin DriversImportance 36 · Surprise 40
  Earnings before income taxes increased to $1,454.9 million for the three months ended September 30, 2026 from $1,307.5 million, and the pretax margin expanded 120 basis points to 26.5%. Adjusted EBIT increased to…
• Strategic Initiatives and AIImportance 31 · Surprise 42
  During the first quarter of fiscal 2027, ADP continued its AI transformation efforts, and ADP Assist added more than 100,000 clients. The company expanded ADP Assist agents across HR and talent workflows, including…
• Products and TechnologyImportance 31 · Surprise 42
  ADP Assist, ADP’s cross-platform generative-AI solution, was embedded more deeply in client workflows and added more than 100,000 clients during the quarter. ADP expanded the capabilities of ADP Assist agents across HR…
• Liquidity and Cash PositionImportance 31 · Surprise 6
  Cash and cash equivalents were $3.3 billion as of September 30, 2026, primarily invested in time deposits and money market funds. ADP reported $11.7 billion of committed credit facilities and expects cash, marketable…
• Operating Expense TrendsImportance 30 · Surprise 14
  Total expenses increased $198.3 million to $4,176.1 million for the three months ended September 30, 2026 from $3,977.8 million a year earlier. Operating expenses rose $123.3 million, primarily because PEO zero-margin…
• Client Funds InterestImportance 30 · Surprise 40
  Interest on funds held for clients rose to $329.3 million for the three months ended September 30, 2026 from $286.8 million a year earlier, an increase of $42.5 million. Average client funds balances increased 5.7% to…
• Quarterly Earnings PerformanceImportance 29 · Surprise 22
  Net earnings for the three months ended September 30, 2026 increased to $1,125.2 million from $1,013.0 million, while diluted EPS rose 14% to $2.83 from $2.49. Adjusted net earnings were $1,123.0 million and adjusted…

Revenue by Product (in millions)