Automatic Data Processing, Inc.'s Stock Analysis

Automatic Data Processing Issues $1 Billion Senior Notes Due 2036

Automatic Data Processing, Inc. has entered into an Underwriting Agreement with BNP Paribas Securities Corp., BofA Securities, Inc., and J.P. Morgan Securities LLC to sell $1 billion in senior notes with a 5.000% interest rate, due in 2036. The sale was registered with the Securities and Exchange Commission and is part of a previously filed Registration Statement.

The senior notes were issued on May 7, 2026, under an Indenture with U.S. Bank Trust Company, which serves as the trustee. The offering was conducted according to a prospectus dated September 4, 2024, and a prospectus supplement dated May 4, 2026, detailing the terms of the notes and their legality as confirmed by legal counsel.

May 07, 2026 16:31:31

ADP Reports Third Quarter Fiscal 2026 Financial Results

Automatic Data Processing (ADP) reported a 7% increase in revenues for the third quarter of fiscal 2026, totaling $5.9 billion, with net earnings also rising by 9% to $1.4 billion. The adjusted EBIT increased by 10% to $1.8 billion, resulting in an adjusted EBIT margin of 30.2%. Diluted earnings per share increased by 10% to $3.38, and the company raised its full-year guidance for revenue and earnings growth.

In terms of segment performance, Employer Services revenue grew by 7%, while PEO Services also saw a 7% increase in revenue. Interest on funds held for clients rose 14% to $404 million, reflecting a 9% increase in average client fund balances. ADP provided an updated fiscal outlook, projecting revenue growth of 6% to 7%, an adjusted EBIT margin expansion, and a diluted EPS growth of 10% to 11% for the fiscal year.

Apr 29, 2026 06:55:17

ADP Reports 6% Revenue Growth for Second Quarter Fiscal 2026

Automatic Data Processing (ADP) announced its financial results for the second quarter ending December 31, 2025, reporting a 6% increase in revenues to $5.4 billion. Net earnings rose by 10% to $1.1 billion, with diluted earnings per share increasing by 11% to $2.62. The company also saw growth in adjusted EBIT, which increased 10% to $1.4 billion, and the adjusted EBIT margin improved by 80 basis points to 26.0%. ADP's effective tax rate for the quarter remained steady at 23.2%.

For fiscal 2026, ADP raised its guidance, projecting revenue growth of about 6% and adjusted diluted EPS growth of 9% to 10%. The Employer Services segment is expected to experience similar revenue growth, while PEO Services is forecasted to grow by 5% to 7%. Additionally, the company anticipates interest on funds held for clients to reach between $1.310 billion and $1.330 billion, driven by a projected 4% to 5% increase in client fund balances and an average yield of approximately 3.4%.

Jan 28, 2026 06:55:14

Automatic Data Processing Annual Meeting Voting Results Summary

The Annual Meeting of Stockholders for Automatic Data Processing, Inc. took place on November 12, 2025, with 354,117,857 shares of common stock represented. The nominees for the Board of Directors were elected for the upcoming year, and the voting results for each nominee were recorded.

Additionally, an advisory proposal regarding the executive compensation of Named Executive Officers was approved. Furthermore, the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year beginning July 1, 2025, was ratified by the stockholders.

Nov 17, 2025 16:05:38

ADP Reports First Quarter Fiscal 2026 Financial Results

Automatic Data Processing (ADP) announced its financial results for the first quarter of fiscal 2026, reporting a 7% increase in revenues to $5.2 billion compared to the same period last year, with net earnings also rising by 6% to $1.0 billion. The adjusted EBIT increased by 7% to $1.3 billion, maintaining a margin of 25.5%. Diluted earnings per share (EPS) rose to $2.49, reflecting a 6% increase, while adjusted diluted EPS grew by 7% to the same amount. The company is maintaining its outlook for fiscal 2026, expecting revenue growth of 5% to 6% and adjusted EBIT margin expansion of 50 to 70 basis points.

In terms of segment performance, Employer Services revenues grew by 7%, while PEO Services revenues also saw a 7% increase. Interest on funds held for clients rose by 13% to $287 million, driven by a 7% increase in average client funds balances. The company anticipates continued growth in its client funds investment strategy, projecting interest on these funds to reach between $1.300 billion and $1.320 billion for the fiscal year. ADP will host a conference call for financial analysts to discuss these results and future expectations.

Oct 29, 2025 06:55:19

ADP Reports Fourth Quarter and Full Year Financial Results

Automatic Data Processing (ADP) reported a 7% increase in revenues for the fiscal year 2025, reaching $20.6 billion, with net earnings rising 9% to $4.1 billion. For the fourth quarter alone, revenues grew 8% to $5.1 billion, while net earnings increased 10% to $911 million. The company also noted a 10% rise in diluted earnings per share to $2.23 for the quarter and a 10% increase to $9.98 for the full year. The adjusted EBIT margin for the year improved to 26.0%, reflecting a 50 basis point increase from the previous year.

Looking ahead, ADP has provided an outlook for fiscal 2026, projecting revenue growth of 5% to 6% and adjusted EBIT margin expansion of 50 to 70 basis points. The company anticipates adjusted diluted earnings per share growth of 8% to 10%. Additionally, new business bookings in the Employer Services segment are expected to grow by 4% to 7%. The effective tax rate is estimated to remain around 23%, and interest on client funds is projected to contribute between $1.250 to $1.270 billion.

Jul 30, 2025 06:55:16

Automatic Data Processing Secures $7.05 Billion in New Credit Facilities

Automatic Data Processing, Inc. has entered into two new credit agreements totaling $7.05 billion, consisting of a $4.55 billion 364-Day Facility and a $2.5 billion Five-Year Facility. These new facilities replace previous agreements and include an option to increase the Five-Year Facility by an additional $500 million, subject to availability. The 364-Day Facility will mature on June 26, 2026, while the Five-Year Facility will mature on June 27, 2030. Both facilities include revolving credit options and customary covenants that restrict certain financial activities of the company and its subsidiaries.

The interest rates on the revolving loans will be based on a floating rate determined by various benchmarks, with commitment fees applicable on unused amounts. The company is also required to guarantee obligations of its subsidiaries that borrow under these facilities. The agreements were arranged by several leading financial institutions, including J.P. Morgan Chase Bank and Bank of America, among others. Borrowings under these new facilities may be used for general corporate purposes.

Jun 27, 2025 16:06:39

ADP Reports $19B Revenue and Expands Global HCM Solutions

ADP has announced a revenue of $19 billion for FY24, highlighting its position as a leading provider in the human capital management (HCM) sector. The company serves over 1.1 million clients, including more than 80% of Fortune 500 companies, and operates in over 140 countries. ADP emphasizes its commitment to innovation, particularly in integrating artificial intelligence across its product offerings to enhance client experiences and streamline operations.

The company continues to focus on expanding its global reach and improving its service offerings through strategic partnerships and acquisitions, such as the recent acquisition of WorkForce Software. ADP's diverse revenue portfolio includes significant contributions from small businesses and major accounts, with ongoing efforts to enhance client satisfaction and retention. The firm aims to address various client challenges, including demographic shifts and rising healthcare costs, while maintaining a strong market presence in the evolving HCM landscape.

Jun 12, 2025 07:58:51

ADP Reports 6% Revenue Growth in Q3 Fiscal 2025

ADP announced its third quarter fiscal 2025 financial results, reporting a 6% increase in revenues to $5.6 billion compared to the same period last year. The company also reported a 5% rise in net earnings, reaching $1.2 billion, and a 6% increase in diluted earnings per share (EPS) to $3.06. Additionally, adjusted EBIT increased by 6% to $1.6 billion, contributing to an adjusted EBIT margin of 29.3%, which reflects a slight increase from the previous year. The company has raised its full-year guidance for adjusted EBIT margin and adjusted diluted EPS growth based on these results.

In terms of segment performance, Employer Services revenues grew by 5%, while PEO Services revenues increased by 7%. The average worksite employees paid by PEO Services rose to approximately 748,000. Interest on funds held for clients also showed an increase of 11%, totaling $355 million. Looking ahead, ADP forecasts a revenue growth of 6% to 7% for fiscal 2025, along with an adjusted EBIT margin expansion of 40 to 50 basis points and diluted EPS growth of 9% to 10%.

Apr 30, 2025 06:57:16

ADP Appoints New CFO, Transition Effective July 2025

ADP has announced the appointment of Peter Hadley as Chief Financial Officer, effective July 1, 2025. He will succeed Don McGuire, who has been CFO since 2021 and will assist in the transition until September 30, 2025. Mr. Hadley, who joined ADP in 2002, has held various leadership roles, including Treasurer and President of Asia Pacific, and brings extensive experience in finance and operations to the position.

The announcement highlights Mr. Hadley's qualifications, including his background in overseeing capital structure and global operations, as well as his prior roles at KPMG and Arthur Andersen. ADP's President and CEO, Maria Black, expressed confidence in Mr. Hadley's ability to lead the company's finance organization and support future growth. The press release also acknowledges the contributions of Don McGuire during his tenure as CFO.

Apr 30, 2025 06:55:17