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Automatic Data Processing, Inc. ADP PEO zero-margin benefits pass-throughs — Revenue

Other product segments

HCM
$2.49B+4.2%
HRO, excluding PEO zero-margin benefits pass-throughs
$1.12B+5.4%
Global
$751.9M+15.3%
Interest on funds held for clients
$403.9M

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PAYXPeo And Insurance Services — Revenue (Gross)
$158M+39.5%
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PAYXPeo — Individual Claims Liability Workers Compensation Insurance
$250K0.0%
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WTWReimbursed Expenses — Portion Of Revenue
0.3%0.0pp
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CBREProject Management — Pass-through costs
$927M+12.1%
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PAYXPeo — Maximum Individual Claims Liability Workers Compensation Insurance
$250K0.0%
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HReimbursed costs — Costs of goods and services sold
$963M+6.8%

Other financials

Income statement

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Revenue$5.9B+7.0%
Gross profit$2.9B+8.3%
Net income$1.4B+8.8%
EPS (diluted)$3.38+10.5%

Balance sheet

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Cash & equivalents$3.2B+20.4%
Total debt$4.4B+30.6%
Total equity$6.4B+8.5%
Total assets$64.5B+14.2%

Cash flow

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Operating cash flow$2.2B+46.7%
CapEx$50.6M+39.0%
Free cash flow$2.2B+46.9%

Valuation

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Market cap$87.31B-34.2%
Enterprise value$88.47B-33.6%
P/E20.1×-13.1×
P/S-2.5×

Profitability

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Gross margin46.2%+0.2pp
Net margin20.1%+0.3pp

Returns & leverage

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Return on equity71.2%-5.1pp
Debt / equity0.7×+0.1×
Current ratio0.0×

Where this comes from

Reported directly by Automatic Data Processing, Inc. in its filing.

Tagged under the XBRL concept us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax.

The official record: Automatic Data Processing, Inc.’s 10-Q, filed April 30, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Automatic Data Processing, Inc.'s PEO zero-margin benefits pass-throughs — revenue?
Automatic Data Processing, Inc. (ADP) reported PEO zero-margin benefits pass-throughs — revenue of $1.17B in Q1 2026.
How has Automatic Data Processing, Inc.'s PEO zero-margin benefits pass-throughs — revenue changed year-over-year?
Automatic Data Processing, Inc.'s PEO zero-margin benefits pass-throughs — revenue 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-throughs — revenue?
Over 4 years (2021 to 2025), Automatic Data Processing, Inc.'s PEO zero-margin benefits pass-throughs — revenue has grown at a 8.5% compound annual growth rate (CAGR), from $3.09B to $4.29B.
What does PEO zero-margin benefits pass-throughs — revenue mean?
Revenue from pass-through employee benefit costs that are billed to clients at cost with no profit margin added.
How do you interpret PEO zero-margin benefits pass-throughs — revenue?
An increase indicates higher client headcount or rising insurance premiums, while a decrease suggests lower benefit utilization or reduced client workforce size. Because these are zero-margin, changes here do not impact operating income but do affect the total revenue growth rate.
How does PEO zero-margin benefits pass-throughs — revenue compare across companies?
Similar to 'pass-through revenue' or 'reimbursable expenses' found in other PEOs or staffing firms where benefit costs are billed directly to clients.