Automatic Data Processing, Inc. (ADP) reported a 7% increase in total revenues for the first quarter of fiscal 2026, reaching $5.175 billion, compared to $4.833 billion in the same period last year. The growth was driven by new business bookings, strong client retention, and an increase in interest on funds held for clients, which rose to $286.8 million from $253.3 million year-over-year. The company's net earnings also saw a 6% increase, totaling $1.013 billion, with diluted earnings per share rising to $2.49 from $2.34.

In terms of expenses, ADP's total costs increased by 8% to $3.978 billion, primarily due to higher operating expenses, which included a significant rise in Professional Employer Organization (PEO) services costs. Operating expenses rose to $2.462 billion, reflecting increased service and implementation costs as well as higher costs related to workers' compensation coverage. Research and development expenses also increased, driven by costs associated with the integration of the recently acquired WorkForce Software.

ADP's customer metrics showed stability, with the pays per control metric remaining unchanged compared to the previous year, while the average number of worksite employees in the PEO segment increased by 2%. The company continues to expand its global footprint, enhancing services across more than 140 countries. The acquisition of WorkForce Software, completed in October 2024, is expected to contribute positively to ADP's Employer Services segment, although its impact on overall financial results has not been deemed material.

The company maintained a solid financial position with cash and cash equivalents of $2.478 billion as of September 30, 2025. ADP's liquidity is supported by $10.6 billion in committed credit facilities and a commercial paper program rated A-1+ by Standard & Poor’s. The company returned approximately $1 billion to shareholders through dividends and share repurchases during the quarter, reflecting its commitment to shareholder-friendly actions.

Looking ahead, ADP remains focused on its strategic priorities, including enhancing its Human Capital Management technology and leveraging its global scale. The company anticipates continued revenue growth driven by its innovative solutions and strong client relationships, while also navigating potential market challenges.

About AUTOMATIC DATA PROCESSING INC

Automatic Data Processing, Inc. (ADP) is a global leader in human capital management (HCM) and payroll solutions, serving over 1.1 million clients and 42 million workers across 140+ countries. Its core offerings include payroll processing, benefits administration, talent and workforce management, HR outsourcing, and compliance services. ADP leverages cloud-based platforms, extensive data insights, and AI-driven technology to simplify HR processes, enhance workforce management, and support businesses of all sizes worldwide.

This description was generated via AI from an annual report. Updated about 1 year ago.

About 10-Q Filings

A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.

Key points about the 10-Q:

  • Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
  • Content: It includes:
    • Financial statements showing the company's current financial position
    • Updates from management on the performance and projections of the business
    • Information about potential risks the company faces
    • Details on how the company is run internally
  • Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.

Our Methodology

AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.

Our method:

  1. Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
  2. AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
  3. Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
  4. Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
  5. Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Read more about AssetRoom

Feedback & Corrections

Spot an error or have a suggestion? Contact us.

View the complete official filing on the SEC website.

Read on SEC.gov