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Automatic Data Processing cash flow, quarter by quarter

Latest: Q1 FY27 · from the cash-flow statements filed with the SEC

Free cash flow$598M in Q1 FY27 · $5.2B over twelve months

Operating cash flow$651M
Capital spending−$52.7M
Free cash flow+$598M
Cash / net income0.6×
Cash conversion cycle54 days

Analysis

In Q1 FY27, Automatic Data Processing generated $651M of operating cash flow and spent $52.7M on capital projects, leaving free cash flow of $598M. That is $2.7M more than in Q1 FY26 ($596M).

Over the twelve months to Sep 30, 2026, operating cash flow was $5.4B; the largest uses were net borrowing (+) / repaid (−) ($5.2B), other investing ($3.5B), dividends ($2.7B); besides operations, cash came from other financing ($15.4B); the cash balance rose by $6.7B.

Operating cash flow was $651M against net income of $1.1B — 0.6× profit, less cash than reported earnings, worth checking against working capital. The largest differences: accrued liabilities −$389M, prepaid and other assets −$346M, contract assets −$263M.

Its cash conversion cycle was 54 days (receivables 59 + inventory 0 − payables 5).

Free cash flow

Automatic Data Processing: free cash flow by quarterAutomatic Data Processing: free cash flow by quarter$1.1BQ2 FY25$1.5BQ3 FY25$1.4BQ4 FY25$596MQ1 FY26$1.1BQ2 FY26$2.2BQ3 FY26$1.4BQ4 FY26$598MQ1 FY27
Operating cash flow less capital spending.
Automatic Data Processing: operating cash flow against capital spendingAutomatic Data Processing: operating cash flow against capital spendingOperating cash flowCapital spending$1.2B$39.4MQ2 FY25$1.5B$36.4MQ3 FY25$1.4B$34.1MQ4 FY25$642M$46.7MQ1 FY26$1.1B$26.5MQ2 FY26$2.2B$50.6MQ3 FY26$1.4B$72.8MQ4 FY26$651M$52.7MQ1 FY27
Latest (Q1 FY27): Operating cash flow $651M, Capital spending $52.7M.

Capital allocation, year by year

Automatic Data Processing: where the cash came from (up) and went (down), by fiscal yearAutomatic Data Processing: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingAsset salesCapital spendingAcquisitionsBuybacksDividendsFY22: Operating cash flow $3.1BFY22: Net borrowing −$900KFY22: Asset sales $34.2MFY22: Capital spending −$174MFY22: Acquisitions −$11.7MFY22: Buybacks −$2.0BFY22: Dividends −$1.7B$3.1BFY22FY23: Operating cash flow $4.2BFY23: Net borrowing −$1.0MFY23: Capital spending −$206MFY23: Acquisitions −$32.4MFY23: Buybacks −$1.1BFY23: Dividends −$1.9B$4.2BFY23FY24: Operating cash flow $4.2BFY24: Net borrowing −$900KFY24: Asset sales $28.3MFY24: Capital spending −$208MFY24: Acquisitions −$33.6MFY24: Buybacks −$1.2BFY24: Dividends −$2.2B$4.2BFY24FY25: Operating cash flow $4.9BFY25: Net borrowing $5.7BFY25: Asset sales $10.8MFY25: Capital spending −$169MFY25: Acquisitions −$1.2BFY25: Buybacks −$1.3BFY25: Dividends −$2.4B$10.7BFY25FY26: Operating cash flow $5.4BFY26: Net borrowing −$3.8BFY26: Capital spending −$197MFY26: Acquisitions −$22.8MFY26: Buybacks −$2.1BFY26: Dividends −$2.6B$5.4BFY26
Over these 5 years operating cash flow totalled $21.8B; the largest uses were dividends ($10.8B) and buybacks ($7.7B). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$3.3B
Debt$5.0B
Net debt$1.7B

Automatic Data Processing funds itself: free cash flow was $5.2B over the last twelve months, and $3.3B of cash and investments stands against $5.0B of debt.

Where the cash came from and went

Automatic Data Processing: sources (+) and uses (−) of cash, Q1 FY27Automatic Data Processing: sources (+) and uses (−) of cash, Q1 FY27Other financing$1.7BOther investing−$830MBuybacks−$759MDividends−$677MOperating cash flow$651MCash drawn (+) / kept (−)−$80.2MCapital spending−$52.7MExchange rates$6.6MNet borrowing (+) / repaid (−)−$300K
Automatic Data Processing: sources (+) and uses (−) of cash, TTM to Q1 FY27Automatic Data Processing: sources (+) and uses (−) of cash, TTM to Q1 FY27Other financing$15.4BCash drawn (+) / kept (−)−$6.7BOperating cash flow$5.4BNet borrowing (+) / repaid (−)−$5.2BOther investing−$3.5BDividends−$2.7BBuybacks−$2.5BCapital spending−$203MExchange rates−$24.5M

From profit to cash

Automatic Data Processing: net income to operating cash flow, Q1 FY27Automatic Data Processing: net income to operating cash flow, Q1 FY27Net income$1.1BDepreciation & amortization$155MStock-based pay$67.2MOther non-cash$2.0MPayables−$25.6MAccrued liabilities−$389MContract assets−$263MPrepaid and other assets−$346MOperating cash flow$651M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q1 FY2759—554
Q4 FY2659—554
Q3 FY2653—449
Q2 FY2659—455
Q1 FY2663—558
Q4 FY2563—558
Q3 FY2557—552
Q2 FY2562—657

Every quarter

QuarterOperating cash flowCapital spendingAcquisitionsBuybacksDividendsNet borrowing (+) / repaid (−)Cash drawn (+) / kept (−)Free cash flow
Q1 FY27$651M−$52.7M—−$759M−$677M−$300K−$80.2M$598M
Q4 FY26$1.4B−$72.8M—−$620M−$683M$985M$2.0B$1.4B
Q3 FY26$2.2B−$50.6M—−$581M−$687M−$300K$21.1B$2.2B
Q2 FY26$1.1B−$26.5M—−$516M−$629M−$5.2B−$29.7B$1.1B
Q1 FY26$642M−$46.7M—−$366M−$627M$438M$1.1B$596M
Q4 FY25$1.4B−$34.1M—−$324M−$626M$4.8B$3.1B$1.4B
Q3 FY25$1.5B−$36.4M−$4.5M−$312M−$628M−$300K$8.4B$1.5B
Q2 FY25$1.2B−$39.4M−$1.2B−$272M−$572M−$4.4B−$13.8B$1.1B

Automatic Data Processing: income statement and cash flow

Automatic Data Processing, Q1 FY27: revenue $5.5B (+6% year over year), operating margin 23.9%. The chart follows the revenue to costs, profit and cash.

Automatic Data Processing: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.