10-K · August 6, 2025
ADP emphasizes scale, data advantage, and an AI-first product roadmap, highlighting over 1.1 million clients, ADP Lyric launch (Sept 2024), and rollout of ADP Assist (generative AI). The company reported a Q4 revenue…
Earnings analysis · 10-Q
ADP earnings analysis
Filed April 30, 2026 · Our reading of the company's report
The latest report
ADP reported strong Q3 FY2026 results with revenues of $5.94 billion, reflecting a 7% increase year-over-year, and EPS of $3.38, which is a 10% growth compared to the same quarter last year. The company also highlighted…
Read full summary
ADP reported strong Q3 FY2026 results with revenues of $5.94 billion, reflecting a 7% increase year-over-year, and EPS of $3.38, which is a 10% growth compared to the same quarter last year. The company also highlighted improved margins and raised its full-year guidance on adjusted EBIT margin and EPS growth, demonstrating confidence in ongoing business performance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.38
- Operating margin
- 30.2%
What stood out
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Revenue Growth of 7% YoY
Total revenue reached $5.94 billion, up from $5.55 billion in Q3 FY2025.
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EPS Increased 10%
Diluted EPS rose to $3.38 from $3.06 year-over-year.
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Adjusted EBIT Margin Expansion
Adjusted EBIT margin improved by 50 basis points to 30.2% for the quarter.
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Interest Income Growth
Interest earnings from client funds rose to $403.9 million, compared to $355.2 million in the previous year.
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Strong Free Cash Flow
Free cash flow was reported at $1.49 billion for Q3, contributing to robust liquidity.
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Increased Shareholder Returns
ADP returned $3.4 billion to shareholders, including $1.9 billion in dividends.
What to watch
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Regulatory Risks Undisclosed
No new material regulatory risks were indicated compared to previous filings.
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Cybersecurity Threats Persist
Ongoing threats from cybersecurity issues continue to pose risks.
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Competition Intensity
Increased competition in HR and payroll service sectors can impact growth.
Management's outlook
Management raised full-year guidance for revenue and adjusted EBIT margin.
Earlier filings 4
10-Q · May 2, 2024
ADP reported quarterly revenue of $5,253.8 million (up $326.0 million versus $4,927.8 million a year ago) and diluted EPS of $2.88 (versus $2.51 prior year). Operating margin remained strong at 29.4% (operating income…
10-Q · February 1, 2024
ADP reported strong Q2 results with total revenue of $4.67B, up 6.3% from $4.39B a year ago, and diluted EPS of $2.13, reflecting an increase of 9.2% from the prior year's $1.95. Gross and operating margins improved to…
10-Q · May 1, 2023
ADP reported Q3 revenue of $4,927.8M (up from $4,513.0M a year ago) and diluted EPS of $2.51 (vs $2.21 prior year), with gross margin expanding to ~46.8% and operating margin to ~27.7%. Growth was broad-based across…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.