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

Other product segments

HCM
$2.24B+4.7%
HRO, excluding PEO zero-margin benefits pass-throughs
$964.3M+5.6%
Global
$749.8M+8.8%
Interest on funds held for clients
$355.4M+15.5%

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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$107.44B-12.1%
Enterprise value$108.59B-15.2%
P/E24.3×-5.6×
P/S4.9×-1.1×

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:RevenueFromContractWithCustomerExcludingAssessedTax.

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
Types of RevenuesYears Ended / June 30, 2026Years Ended / June 30, 20252024
HCM$9,110.6$8,674.5$8,155.7
HRO, excluding PEO zero-margin benefits pass-throughs3,973.53,782.33,544.2
PEO zero-margin benefits pass-throughs4,607.34,289.03,975.9
Global2,901.22,626.02,502.1
Interest on funds held for clients1,354.81,189.11,024.7
Total revenues$21,947.4$20,560.9$19,202.6

Item 8. Financial Statements and Supplementary Data

FAQ

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 $1.18B in Q2 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 7.8% year-over-year, from $1.09B to $1.18B.
What is the long-term trend for Automatic Data Processing, Inc.'s PEO zero-margin benefits pass-throughs — revenue?
Over 4 years (2022 to 2026), Automatic Data Processing, Inc.'s PEO zero-margin benefits pass-throughs — revenue has grown at a 7.0% compound annual growth rate (CAGR), from $3.51B to $4.61B.
What does PEO zero-margin benefits pass-throughs — revenue mean?
This metric represents the revenue generated from pass-through costs associated with employee benefits in a Professional Employer Organization (PEO) model. These revenues are recognized on a gross basis but carry no profit margin, as they represent the direct reimbursement of insurance premiums and related benefit costs paid on behalf of client employees. Tracking this allows investors to isolate the impact of benefit cost fluctuations on total reported revenue without distorting the underlying profitability of the core HR outsourcing services.

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