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Automatic Data Processing, Inc. ADP Employer Services — Goodwill

Other segment segments

PEO Services
$4.8M0.0%

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Other financials

Income statement

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Revenue$5.5B+6.8%
Gross profit$2.5B+8.7%
Net income$978.6M+7.5%
EPS (diluted)$2.45+9.9%

Balance sheet

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Cash & equivalents$4.2B+26.4%
Total debt$5.4B-41.4%
Total equity$6.0B-2.5%
Total assets$63.2B+18.4%

Cash flow

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Operating cash flow$1.4B-0.8%
CapEx$72.8M+113%
Free cash flow$1.4B-3.6%

Valuation

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Market cap$108.66B-11.1%
Enterprise value$109.8B-14.3%
P/E24.6×-5.3×
P/S-1.0×

Profitability

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Gross margin46.4%+0.4pp
Net margin20.1%+0.3pp
FCF margin23.9%+0.7pp

Returns & leverage

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Return on equity72.2%-3.8pp
Debt / equity0.9×-0.6×
Current ratio1.1×0.0×

Where this comes from

Reported directly by Automatic Data Processing, Inc. in its filing.

Tagged under the XBRL concept us-gaap:Goodwill.

The source filing: Automatic Data Processing, Inc.’s 10-K, filed August 5, 2026.

Filed
Aug 5, 2026, 4:01 PM EDT
Fiscal year
FY2026
Accession
0000008670-26-000030
Line itemEmployer ServicesPEOServicesTotal
Balance at June 30, 2024$2,348.8$4.8$2,353.6
Additions and other adjustments887.0887.0
Currency translation adjustments32.932.9
Balance at June 30, 2025$3,268.7$4.8$3,273.5
Additions and other adjustments21.321.3
Currency translation adjustments(10.4)(10.4)
Balance at June 30, 2026$3,279.6$4.8$3,284.4

Item 8. Financial Statements and Supplementary Data

FAQ

What is Automatic Data Processing, Inc.'s employer services — goodwill?
Automatic Data Processing, Inc. (ADP) reported employer services — goodwill of $3.28B in Q2 2026.
How has Automatic Data Processing, Inc.'s employer services — goodwill changed year-over-year?
Automatic Data Processing, Inc.'s employer services — goodwill increased by 0.3% year-over-year, from $3.27B to $3.28B.
What is the long-term trend for Automatic Data Processing, Inc.'s employer services — goodwill?
Over 4 years (2022 to 2026), Automatic Data Processing, Inc.'s employer services — goodwill has grown at a 9.1% compound annual growth rate (CAGR), from $9.26B to $13.12B.
What does employer services — goodwill mean?
This reflects the intangible asset value recorded when the Employer Services segment acquires other businesses for a price exceeding the fair market value of their net identifiable assets. It represents the premium paid for brand reputation, customer relationships, and intellectual property within the HR services market.

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