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Automatic Data Processing, Inc. ADP PEO Services — Total consolidated earnings before income taxes

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$1.27B+9.5%

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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:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest.

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 — total consolidated earnings before income taxes?
Automatic Data Processing, Inc. (ADP) reported PEO services — total consolidated earnings before income taxes of $217.1M in Q2 2026.
How has Automatic Data Processing, Inc.'s PEO services — total consolidated earnings before income taxes changed year-over-year?
Automatic Data Processing, Inc.'s PEO services — total consolidated earnings before income taxes decreased by 1.3% year-over-year, from $219.9M to $217.1M.
What is the long-term trend for Automatic Data Processing, Inc.'s PEO services — total consolidated earnings before income taxes?
Over 4 years (2022 to 2026), Automatic Data Processing, Inc.'s PEO services — total consolidated earnings before income taxes has grown at a 1.8% compound annual growth rate (CAGR), from $871.2M to $936M.
What does PEO services — total consolidated earnings before income taxes mean?
This represents the pre-tax profitability of the PEO segment after accounting for all operating expenses, including pass-through costs and overhead. It serves as the primary measure of the segment's financial performance and its contribution to the company's overall bottom line. Investors use this to evaluate the profitability of the PEO business model.

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