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Automatic Data Processing, Inc. ADP Employer Services — Sales & Marketing

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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$107.44B-12.1%
Enterprise value$108.59B-15.2%
P/E24.3×-5.6×
P/S4.9×-1.1×

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:SellingAndMarketingExpense.

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
Year ended June 30, 2026Employer ServicesPEO ServicesTotal
Intercompany eliminations(12.1)
Total consolidated revenues$21,947.4
Less segment expenses: (a)
Selling and marketing2,365.7415.6
Zero-margin benefits pass-through costs4,607.3
Workers' compensation coverage and state unemployment taxes718.4
Other segment expenses (b)7,028.9450.7
Total segment earnings before income taxes5,436.8936.16,372.9

Item 8. Financial Statements and Supplementary Data

FAQ

What is Automatic Data Processing, Inc.'s employer services — sales & marketing?
Automatic Data Processing, Inc. (ADP) reported employer services — sales & marketing of $632.2M in Q2 2026.
How has Automatic Data Processing, Inc.'s employer services — sales & marketing changed year-over-year?
Automatic Data Processing, Inc.'s employer services — sales & marketing increased by 8.0% year-over-year, from $585.2M to $632.2M.
What is the long-term trend for Automatic Data Processing, Inc.'s employer services — sales & marketing?
Over 3 years (2023 to 2026), Automatic Data Processing, Inc.'s employer services — sales & marketing has grown at a 7.9% compound annual growth rate (CAGR), from $1.89B to $2.37B.
What does employer services — sales & marketing mean?
This includes all costs associated with acquiring new clients and promoting the Employer Services segment's suite of products. It covers sales commissions, advertising, and the operational costs of the sales force dedicated to HR and payroll solutions.

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