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Automatic Data Processing, Inc. ADP PEO Services — Zero-margin benefits pass-through costs
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Where this comes from
Reported directly by Automatic Data Processing, Inc. in its filing.
Tagged under the XBRL concept adp:ZeroMarginBenefitsPassThroughCosts.
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, 2026 | Employer Services | PEO Services | Total |
|---|---|---|---|
| Total consolidated revenues | $21,947.4 | ||
| Less segment expenses: (a) | |||
| Selling and marketing | 2,365.7 | 415.6 | |
| Zero-margin benefits pass-through costs | — | 4,607.3 | |
| Workers' compensation coverage and state unemployment taxes | — | 718.4 | |
| Other segment expenses (b) | 7,028.9 | 450.7 | |
| Total segment earnings before income taxes | 5,436.8 | 936.1 | 6,372.9 |
| Reconciliation of earnings before income taxes: |
Item 8. Financial Statements and Supplementary Data
FAQ
- 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 $1.18B in Q2 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 7.8% year-over-year, from $1.09B to $1.18B.
- What is the long-term trend for Automatic Data Processing, Inc.'s PEO services — zero-margin benefits pass-through costs?
- Over 3 years (2023 to 2026), Automatic Data Processing, Inc.'s PEO services — zero-margin benefits pass-through costs has grown at a 6.6% compound annual growth rate (CAGR), from $3.8B to $4.61B.
- What does PEO services — zero-margin benefits pass-through costs mean?
- These are costs associated with employee benefits, such as health insurance premiums, that are passed through to clients without a markup. Because these costs are reimbursed by clients, they do not contribute to the segment's operating margin. Monitoring these costs is critical to understanding the gross revenue versus net service revenue dynamics of the PEO model.
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