Business Segments · Zero-margin benefits pass-through costs
PEO Services — Zero-margin benefits pass-through costs
Automatic Data Processing, Inc. PEO Services — 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 Services — Zero-margin benefits pass-through costs shows an upward trend with a 6.2% CAGR.
Analysis
StatementSegment
CategoryOther
SignalContext dependent
VolatilityModerate
First reportedQ3 2022
Last reportedQ4 2025
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
| Q3 '22 | Q4 '22 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 services — zero-margin benefits pass-through costs?
- Automatic Data Processing, Inc. (ADP) reported peo services — zero-margin benefits pass-through costs of $1.17B in Q1 2026.
- How has Automatic Data Processing, Inc.'s peo services — zero-margin benefits pass-through costs changed year-over-year?
- Automatic Data Processing, Inc.'s peo services — 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 services — zero-margin benefits pass-through costs?
- Over 2 years (2023 to 2025), Automatic Data Processing, Inc.'s peo services — zero-margin benefits pass-through costs has grown at a 6.2% compound annual growth rate (CAGR), from $3.80B to $4.29B.
- What does peo services — zero-margin benefits pass-through costs mean?
- Employee benefit costs passed directly to clients without any profit markup.