Business Segments · Zero-margin benefits pass-through costs
PEO — Zero-margin benefits pass-through costs
Automatic Data Processing, Inc. PEO — Zero-margin benefits pass-through costs increased by 3.9% to $1.17B in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 7.3%, from $1.09B to $1.17B. Over 2 years (FY 2023 to FY 2025), PEO — Zero-margin benefits pass-through costs shows an upward trend with a 6.2% CAGR.
Analysis
StatementSegment
CategoryOther
SignalContext dependent
VolatilityModerate
First reportedQ1 2023
Last reportedQ3 2026Apr 30, 2026
How to read this metric
Fluctuations generally track with the number of client employees enrolled in benefit plans rather than operational performance.
Detailed definition
These are costs associated with employee benefits, such as health insurance premiums, that are passed through to clients...
Peer comparison
Comparable to pass-through expense accounting in PEO or staffing industry models.
Metric ID:
adp_segment_peo_zero_margin_benefits_pass_through_costsHistorical Data
15 periods
| Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $950.23M | $950.23M | $950.23M | $950.23M | $993.98M | $993.98M | $993.98M | $993.98M | $1.05B | $1.06B | $1.09B | $1.09B | $1.13B | $1.13B | $1.17B |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | +4.6% | +0.0% | +0.0% | +0.0% | +5.6% | +0.6% | +3.3% | +0.4% | +3.3% | -0.4% | +3.9% |
| YoY Change | — | — | — | — | +4.6% | +4.6% | +4.6% | +4.6% | +5.6% | +6.2% | +9.7% | +10.1% | +7.8% | +6.7% | +7.3% |
Range$950.23M – $1.17B
CAGR+6.1%
Avg YoY Growth+6.5%
Median YoY Growth+6.2%
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Frequently Asked Questions
- What is Automatic Data Processing, Inc.'s peo — zero-margin benefits pass-through costs?
- Automatic Data Processing, Inc. (ADP) reported peo — zero-margin benefits pass-through costs of $1.17B in Q1 2026.
- How has Automatic Data Processing, Inc.'s peo — zero-margin benefits pass-through costs changed year-over-year?
- Automatic Data Processing, Inc.'s peo — zero-margin benefits pass-through costs increased by 7.3% year-over-year, from $1.09B to $1.17B.
- What is the long-term trend for Automatic Data Processing, Inc.'s peo — zero-margin benefits pass-through costs?
- Over 2 years (2023 to 2025), Automatic Data Processing, Inc.'s peo — zero-margin benefits pass-through costs has grown at a 6.2% compound annual growth rate (CAGR), from $3.8B to $4.29B.
- What does peo — zero-margin benefits pass-through costs mean?
- Employee benefit costs passed directly to clients without any profit markup.