ADP
In 1949, our founders established ADP with a simple, innovative idea: help clients focus on their business by solving their payroll challenges.
10-K, Aug 5, 2026
Source and method
In the company’s words: first descriptive sentence of 10-K Item 1, verbatim (extractive). Item 1 · Business · 10-K · 0000008670-26-000030 · filed Aug 5, 2026
Business
How does ADP make money?
Employer Services is 66.9% of revenue.
Source and method
Revenue by segments, FY2023.
annual report FY2023 · 0000008670-23-000030 · shares derived = part / total revenue
Calculated: share = part revenue ÷ total revenue ($18.0B).
- Employer Services: $12.0B · 66.9%
- Professional Employee Organization Services: $6.0B · 33.2%
- Other: −$14.6M · −0.1%
What is left of every $100?
Of every $100 in revenue, $20 is net income.
Source and method
Of every $100 of revenue, FY2026.
Calculated: amount ÷ revenue × 100.
- Revenue: $21.9B
- Gross profit: $10.2B
- Operating income: not reported (not reported for this fiscal year, nothing estimated)
- Net income: $4.4B
- Free cash flow: not reported (not reported for this fiscal year, nothing estimated)
Where do customers sit?
The region figures in the latest annual report overlap (regions and countries mixed) and do not add up to total revenue, so no chart is shown (nothing estimated).
In the company’s words ›
“In the 77 years since, we have led the Human Capital Management (“HCM”) industry in innovation.”
“We were the first in HCM to deliver automation, move to the cloud, provide a mobile app, and create an online marketplace.”
“Today, we continue that legacy with artificial intelligence (“AI”), building AI into the very core of how we orchestrate, govern and execute HR and pay processes for real-world outcomes.”
Item 1 · Business · 10-K · 0000008670-26-000030 · filed Aug 5, 2026
Where did the growth actually come from?
Employer Services drove 55% of ADP’s growth.
Source & method
- Counted
- Segment revenue as filed, first and last fiscal year of the range.
- Formulas
- Change = segment revenue (to) − segment revenue (from); share of growth = change / total revenue change (calculated). Not allocated = total revenue − sum of reported segments (calculated, never filled in).
- Guards
- Segment break: if the company redrew its segments inside the range, no share of growth is claimed. No segment break reported for this company. Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Thesis
Why do people invest?
2 reasons in the company’s own words.
Revenue +1%
“Total revenues increased in fiscal 2026 due to new business started from new business bookings, strong client revenue retention, an increase in zero-margin benefits pass-throughs of $318.3 million, an increase in pricing, a 1% year-over-year growth impact of foreign currency, and an increase in interest on funds held for clients of $165.7 million.”
Item 7 · MD&A · 10-K · 0000008670-26-000030 · filed Aug 5, 2026
Position (in the company’s words)
“Today, we are a global leader in HR and payroll solutions, serving over 1.1 million clients and paying over 42 million workers in over 140 countries and territories.”
Item 1 · Business · 10-K · 0000008670-26-000030 · filed Aug 5, 2026
Source and method
Verbatim · selection. Sentences selected by rules from the 10-K and checked word for word against it; no AI summary. Not investment advice, not a recommendation, no forecast.
2 of 2 points met the selection rules (score, subject = the metric, quoted number within ±10% of the stored value).
KPIs
How fast is revenue growing?
Revenue grew 6.7% to $21.9B.
Revenue grew 6.8% YoY to $5.5B.
Source & method
- Counted
- Total revenue, as filed in 10-K / 20-F / 10-Q XBRL.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Did the growth reach the shareholder?
Per share, revenue grew 25.6%.
Source & method
- Counted
- Revenue and weighted-average diluted shares, as filed, first and last fiscal year of the range.
- Formulas
- Revenue per diluted share = revenue / diluted shares; growth = (to / from) − 1. All three changes are calculated.
- Guards
- IPO: if the start year ended more than 365 days before the first SEC filing and diluted shares then rose ≥25%, the range is hidden by default (Options → Include IPO-distorted periods). Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How profitable is it?
46.4% gross margin, up from 46.0%.
Net income grew 8.2% to $4.4B.
R&D grew 4.1% to $1.0B.
SG&A grew 8.8% to $4.4B.
EPS diluted grew 9.6% to $10.94.
45.9% gross margin, up from 45.1%.
Net income grew 7.5% YoY to $979M.
R&D fell 1.3% YoY to $266M.
SG&A grew 14% YoY to $1.3B.
EPS diluted grew 10% YoY to $3.38.
Source & method
- Counted
- Income statement items, as filed.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated. Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How much cash does it make, and where does it go?
Operating cash flow grew 10% to $5.4B.
Buybacks grew 63% to $2.1B.
Dividends grew 9.5% to $2.6B.
Stock-based compensation fell 8.8% to $243M.
Operating cash flow fell 0.8% YoY to $1.4B.
Buybacks grew 91% YoY to $620M.
Dividends grew 9.2% YoY to $683M.
Stock-based compensation fell 6.1% YoY.
Source & method
- Counted
- Cash flow statement items, as filed; free cash flow = operating cash flow − capex (calculated).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How strong is the balance sheet?
$4.2B cash vs $5.0B debt.
Total debt grew 25% to $5.0B.
Interest expense grew 0.7% to $459M.
Total assets grew 18% to $63.2B.
Equity fell 2.5% to $6.0B.
Cash grew 26% YoY to $4.2B.
Total debt grew 25% YoY to $5.0B.
Interest expense grew 6.4% YoY to $121M.
Total assets grew 18% YoY to $63.2B.
Equity fell 2.5% YoY to $6.0B.
Source & method
- Counted
- Balance sheet items at fiscal year end, as filed; total debt is derived from reported components (excl. operating leases).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Dependencies
Who does ADP depend on?
No customer above the disclosure threshold.
Customers, suppliers, stakes and mentions ›
Only what filings state. Anonymous customers stay anonymous.
Largest customers (ADP annual report)
No customer with a reported share of revenue (the 10-K names none above the disclosure threshold).
Suppliers named by ADP
No supplier among the covered companies is named in the filings.
ADP holds stakes in
No stake in a covered company found in SEC filings.
Others name ADP
1 partner mention (e.g. Workday) in covered companies’ filings. Mentions, not confirmed relationships.
Risks
What could go wrong?
4 of 12 risk factors, one per theme.
Competition
“Regulators worldwide continue to exercise a high level of scrutiny with respect to anti-corruption, antitrust and competition, economic and trade sanctions, and anti-money laundering laws and regulations.”
Item 1A · Risk Factors · 10-K · 0000008670-26-000030 · filed Aug 5, 2026
Trade, government policy and geopolitics
“Trade, including the imposition of tariffs or other trade restrictions, monetary and fiscal policies, and political and economic conditions may substantially change, and credit markets may experience periods of constriction and volatility.”
Item 1A · Risk Factors · 10-K · 0000008670-26-000030 · filed Aug 5, 2026
AI and new products
“Our businesses operate in industries that are subject to rapid technological advances (such as generative and agentic AI) and changing client needs and preferences.”
Item 1A · Risk Factors · 10-K · 0000008670-26-000030 · filed Aug 5, 2026
Security, defects and outages
“The collection, storage, hosting, transfer, processing, disclosure, use, security and retention and destruction of personal information required to provide our services is subject to federal, state and foreign privacy, data protection and cyber security laws.”
Item 1A · Risk Factors · 10-K · 0000008670-26-000030 · filed Aug 5, 2026
Source and method
Short verbatim quotes from the risk factors in Item 1A, one per theme (a partial selection). Full list: 10-K.
Who’s invested
Who owns more than 5%?
Vanguard Capital Management LLC holds 7.51%.
Vanguard Capital Management LLC7.51%
13G · as of Mar 31, 2026 · filed Apr 29, 2026
State Street Corp5.1%
13G · as of Jun 30, 2026 · filed Aug 7, 2026
BlackRock Inc.8.1% (then)
13G/A · filed Jan 25, 2024 · older than 18 months, current position unknown
Source and method
Holders above 5% from Schedule 13G/13D, SEC filings only. “(then)”: reported in a filing older than 18 months; the current position is not known from SEC 13G/13D data.
2 filings reporting a stake below 5% (e.g. after selling) not listed.
13F holders and insider trades ›
Largest institutional holders, 13F, quarter ending Jun 30, 2026
BlackRock, Inc.10.0%
36.2M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Vanguard Capital Management LLC7.2%
26.1M shares · 13F filed Aug 13, 2026 · share of 13F-reported
State Street Corp5.7%
20.4M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Invesco Ltd.3.8%
13.6M shares · 13F filed Aug 14, 2026 · share of 13F-reported
Charles Schwab Investment Management Inc3.5%
12.7M shares · 13F filed Aug 14, 2026 · share of 13F-reported
2,283 13F filers report positions. 13F covers managers with over $100M in US equities; it is not a full shareholder list, and shares are not a percentage of shares outstanding.
Insiders, last 12 months (Form 4, open market)
1 purchases · 38 sales · $13.8M sold
Grants, gifts and tax withholding counted separately · window Oct 13, 2025 – Oct 13, 2026
All metrics
All metrics · 32 SEC metrics, FY2017–FY2026
Income statement 10
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue | ||||||||||
| D&A | ||||||||||
| Discontinued operations | not reported | not reported | not reported | not reported | not reported | not reported | not reported | not reported | ||
| Gross profit calc. | ||||||||||
| Income taxes | ||||||||||
| Interest expense | ||||||||||
| Net income | ||||||||||
| Research and development | not reported | not reported | not reported | not reported | not reported | |||||
| Revenue | ||||||||||
| SG&A | ||||||||||
Balance sheet 9
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash and equivalents | ||||||||||
| Current liabilities | ||||||||||
| Equity | ||||||||||
| Equity incl. NCI | ||||||||||
| Long-term debt | ||||||||||
| Short-term debt (balance sheet line) | ||||||||||
| Total assets | ||||||||||
| Total debt calc. | ||||||||||
| Total liabilities & equity | ||||||||||
Cash flow 5
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Buybacks | ||||||||||
| Dividends | ||||||||||
| Interest paid | ||||||||||
| Operating cash flow | ||||||||||
| Stock-based compensation | ||||||||||
Per share & shares 4
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| EPS basic | ||||||||||
| EPS diluted | ||||||||||
| Wtd. shares basic | ||||||||||
| Wtd. shares diluted | ||||||||||
Other 4
| Metric | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Other income (incl. interest) | ||||||||||
| Pretax income | ||||||||||
| Short-term borrowings / commercial paper | ||||||||||
| Total liabilities | ||||||||||
Method
extractive: verbatim sentences selected by rules from Item 1, 1A and 7; no AI summary; every sentence matched verbatim against the filing text. Numbers: Hollsteen SEC dataset. Every value opens its SEC source · version history of all values