Automatic Data Processing Inc

Company facts

Industry

Services-Computer Processing & Data Preparation

Headquarters

Roseland, New Jersey

Most recent report

10-K, filed Aug 5, 2026

Incorporated

Delaware

Filings on record

1,001+ filings

On EDGAR

CIK 8670

Fiscal year ends

June

Filer status

Large accelerated filer

What to read: FY2026 10-K

SECSift found 4 of 25 sections worth reading, with 6 positive, 14 notable, and 1 negative flags.

• Risk Factors (Item 1A)

  Company-specific risk factor additions (agentic AI, antitrust, tariffs) and a real past impact on investment strategy.
  Notable

  • ADP states changes in laws 'have caused' a modification to its client funds investment strategy, indicating a real past impact.
  • ADP now includes antitrust and competition laws in its compliance risk, a new risk factor for FY2025.
  • ADP completed its registration of ADP Canada Co. as a Payment Service Provider with the Bank of Canada (previously just filed application).
  • ADP added agentic AI to its AI risks and now calls out discrimination as a specific AI risk, broadening the exposure.
  • ADP removed the specific reference to COVID-19 in the natural disaster risk factor, reflecting a de-emphasis.
  • ADP now explicitly mentions tariffs and AI-driven employment declines as economic risks, new for FY2025.

• Market for the Stock (Item 5)

  New $6B buyback authority and sharply higher Q4 repurchases are company-specific data worth tracking.
  Positive

  • New $6B buyback approved in January 2026, up from $5B, showing board confidence in cash flow and value.

• Management's Discussion (Item 7)

  Full detail: revenue, margins, cash returns; PEO weakness, restructuring & legal charges.
  Positive

  • Revenue grew 7% to $21,947.4M in FY2026.
  • Adjusted EBIT margin expanded 80bps to 26.8% in FY2026.
  • Adjusted diluted EPS grew 11% to $11.12 in FY2026.
  • Returned $4.7B via dividends ($2.6B) and buybacks ($2.1B) in FY2026.
  Notable

  • Share repurchases doubled to 8.6M shares at avg $242.92 in FY2026 from 4.4M at $289.11.
  • ADP Indemnity reinsurance premium rose to $327.8M in July 2026 from $278M prior year.
  • Took a $91.1M restructuring charge in Q4 FY2026 for business alignment program.
  • Senior notes increased to $5.0B from $4.0B with new issuances in FY2026 and FY2025.

• Financial Statements (Item 8)

  Core financials: strong earnings and buyback step-up, but new goodwill risk and ERISA settlement.
  Positive

  • Share repurchases more than doubled to 8.6M shares for $2,083.3M in FY2026, up from 4.4M shares for $1,280.5M.
  Notable

  • Workers' comp letters of credit increased to $390M from $351M to secure PEO obligations with AIG.
  • Issued $1.0B 5.00% notes due 2036; commercial paper program capacity raised to $11.7B from $10.6B.
  • Purchase commitments nearly doubled to $2,850.5M, including software, services, and a $278M reinsurance premium.
  • ERISA class action settled for $48M; $30M insurance receivable recorded as probable recovery.
  Negative

  • Goodwill impairment risk for a reporting unit in Employer Services with limited historical HCM data, requiring significant judgment.

What changed: FY2026 vs. FY2025

About 7% of ADP's FY2026 10-K is new information. 54 paragraphs were added, 326 changed, and 109 removed. Below are the most important lines SECSift identified.

• Financial Statements (Item 8) 120
• Management's Discussion (Item 7) 66
• Business (Item 1) 56
• Part IV (Part IV) 39
• Risk Factors (Item 1A) 28
• Directors and Officers (Item 10) 7
• Controls and Procedures (Item 9A) 5
• Cybersecurity (Item 1C) 3
• Market for the Stock (Item 5) 3
• Other Information (Item 9B) 1