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Automatic Data Processing, Inc. ADP PEO 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 PEO services — sales & marketing?
Automatic Data Processing, Inc. (ADP) reported PEO services — sales & marketing of $110.7M in Q2 2026.
How has Automatic Data Processing, Inc.'s PEO services — sales & marketing changed year-over-year?
Automatic Data Processing, Inc.'s PEO services — sales & marketing increased by 14.5% year-over-year, from $96.7M to $110.7M.
What is the long-term trend for Automatic Data Processing, Inc.'s PEO services — sales & marketing?
Over 3 years (2023 to 2026), Automatic Data Processing, Inc.'s PEO services — sales & marketing has grown at a 10.6% compound annual growth rate (CAGR), from $307.4M to $415.6M.
What does PEO services — sales & marketing mean?
These are the costs incurred to acquire new clients and retain existing ones within the PEO segment, including sales commissions, advertising, and marketing campaigns. Tracking this metric helps evaluate the efficiency of the segment's customer acquisition strategy. It is essential for understanding the investment required to drive top-line growth in the PEO business.

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