Automatic Data Processing, Inc. (ADP) reported a revenue increase of 7% for the fiscal year ending June 30, 2026, reaching $21.95 billion, compared to $20.56 billion in the previous fiscal year. The growth was driven by strong client retention, new business bookings, and an increase in pricing. Adjusted diluted earnings per share rose by 11% to $11.12, while net earnings increased by 8% to $4.41 billion. The company also experienced a 1% growth in its U.S. pays per control metric, indicating a stable increase in the number of employees processed through its payroll services.
In terms of operational metrics, ADP served over 1.1 million clients and processed payroll for approximately 42 million workers across more than 140 countries. The Professional Employer Organization (PEO) segment saw a 2% increase in average worksite employees, contributing to the overall revenue growth. The company’s Employer Services segment generated $14.83 billion in revenue, a 7% increase from the previous year, while the PEO Services segment also grew by 7% to $7.13 billion.
Strategically, ADP has focused on enhancing its Human Capital Management (HCM) technology, integrating artificial intelligence (AI) into its services. The launch of ADP Assist, an AI-driven tool, has been a significant development, providing clients with improved efficiency in payroll and HR processes. The company also made a notable acquisition in October 2024, purchasing WorkForce Software to bolster its workforce management capabilities. This acquisition is expected to enhance ADP's service offerings and market position.
Financially, ADP maintained a solid liquidity position with cash and cash equivalents totaling $4.23 billion as of June 30, 2026. The company returned $4.7 billion to shareholders through dividends and share repurchases, reflecting its commitment to shareholder value. The total client funds obligations increased to $44.42 billion, up from $31.34 billion in the previous year, indicating a growing client base and increased service demand.
Looking ahead, ADP remains optimistic about its growth trajectory, emphasizing its commitment to investing in technology and expanding its global footprint. The company plans to continue leveraging its data advantages and domain expertise to drive innovation in the HCM space, positioning itself to meet evolving client needs in a competitive market.
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.
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