ADP AUTOMATIC DATA PROCESSING INC

Overview and Growth

AUTOMATIC DATA PROCESSING INC generated $21.95B of revenue in fiscal 2026, with net income of $4.41B and an operating cash inflow of $5.44B. Revenue of $21.95B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 6.7% above fiscal 2025 revenue of $20.56B, marking a year-over-year increase. Diluted earnings per share were $10.94, translating the period’s attributable earnings into the amount reported for each diluted share. The per-share result recorded a 9.6% increase from fiscal 2025 diluted EPS of $9.98. Total assets stood at $63.19B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. The revenue-to-assets relationship was 0.35x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Gross profit was $10.19B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 46.4% of revenue, showing how much of the top line remained after direct costs. After all reported below-operating-line items, the company recorded net income of $4.41B for the fiscal year. The final earnings result represented 20.1% of revenue, connecting the absolute net income figure with the company’s top-line scale. Pretax income was $5.73B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Pretax income represented 26.1% of revenue, placing earnings before tax in the context of the company’s operating scale. Income tax expense totaled $1.32B, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 23.0%, without assuming a statutory-rate comparison. Net income equaled 73.2% of period-end equity, showing the earnings generated on shareholders’ book capital. The net-income-to-assets relationship measured 7.0%, showing earnings relative to the full balance sheet. Current net income of $4.41B was above fiscal 2025 net income of $4.08B, showing the direction of the bottom-line change.

Liquidity and Capital Structure

At period end, the $63.19B asset base was financed through $57.16B of liabilities and $6.03B of equity. Current assets were $52.56B against $50.02B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 1.05x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $4.23B, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 8.5%, excluding receivables and other current assets. The company carried $4.97B of total debt at period end, which frames its leverage and debt-service burden. The debt-to-equity relationship was 0.82x, showing how much debt the company carried for each unit of book equity. Debt represented 7.9% of total assets, placing borrowing in the context of the company’s full resource base. Relative to total assets, liabilities measured 90.5%, complementing the separate equity-based view of the company’s capital structure. Cash and equivalents equaled 6.7% of total assets, showing the liquid cash component within the company’s broader resource base. Compared with $53.37B in fiscal 2025, the current asset base moved 18.4% and finished higher. Reported equity changed 2.5% from $6.19B in fiscal 2025, placing the current capital base lower year over year. Cash and equivalents were 26.4% higher than fiscal 2025 cash of $3.35B, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

Cash flow from operations was $5.44B, a reported cash inflow that can be compared directly with net income and capital spending. Against net income, operating cash flow measured 1.23x, showing the relationship between accrual earnings and operating cash.

Based on the annual report for the fiscal year ending Jun 30, 2026. Analysis generated Oct 21, 2026.