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Automatic Data Processing, Inc. ADP PEO Services — Other segment expenses

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$1.79B+4.3%

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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:SegmentReportingOtherItemAmount.

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
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
Reconciliation of earnings before income taxes:
Other (c)(642.6)
Total consolidated earnings before income taxes$5,730.3

Item 8. Financial Statements and Supplementary Data

FAQ

What is Automatic Data Processing, Inc.'s PEO services — other segment expenses?
Automatic Data Processing, Inc. (ADP) reported PEO services — other segment expenses of $117.9M in Q2 2026.
How has Automatic Data Processing, Inc.'s PEO services — other segment expenses changed year-over-year?
Automatic Data Processing, Inc.'s PEO services — other segment expenses increased by 12.8% year-over-year, from $104.5M to $117.9M.
What is the long-term trend for Automatic Data Processing, Inc.'s PEO services — other segment expenses?
Over 3 years (2023 to 2026), Automatic Data Processing, Inc.'s PEO services — other segment expenses has grown at a 15.5% compound annual growth rate (CAGR), from $292.3M to $450.8M.
What does PEO services — other segment expenses mean?
This category includes all operational expenses for the PEO segment not classified as selling, marketing, or specific pass-through costs. It typically encompasses administrative overhead, technology infrastructure maintenance, and general support costs required to deliver HR services. It is a key metric for assessing the underlying operational efficiency of the segment.

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