Automatic Data Processing, Inc.

ADP · NASDAQ · USD

Financials

Annual

StatisticsIncome statementBalance sheetCash flowDividendsSegments

Valuation and market statistics · USD millions unless noted · ratios on the twelve months ending at each period

Line item	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018	FY2017	FY2016	FY2015	FY2014	FY2013	FY2012	FY2011	FY2010	FY2009	FY2008	FY2007	FY2006	FY2005	FY2004	FY2003	FY2002	FY2001	FY2000	FY1999	FY1998	FY1997	FY1996	FY1995	FY1994	FY1993	FY1992	FY1991	FY1990	FY1989	FY1988	FY1987	FY1986
Valuation
Market cap	$89,520	$126,404	$97,694	$90,800	$87,744	$83,695	$62,740	$69,667	$56,524	$43,175	$38,713	$33,808	$33,307	$29,411	$23,795	$22,805	$17,678	$15,644	$19,170	$23,373	–	–	–	$16,011	$20,583	$24,633	$26,456	$21,344	$17,249	$10,843	$8,818	$7,065	$5,900	$5,352	$4,690	$3,627	$3,199	$2,316	$2,427	$2,820	$1,941
Enterprise value	$90,561	$127,623	$98,102	$92,146	$89,755	$84,461	$63,180	$69,972	$56,354	$42,394	$37,506	$32,151	$31,476	$28,239	$22,233	$21,413	$16,046	$14,121	$17,639	$21,600	–	–	–	$14,090	$19,198	$22,953	$24,785	$20,464	$16,929	$10,784	$9,003	$7,151	$6,037	$5,520	$4,727	$3,552	$3,067	$2,357	$2,173	$2,564	$1,769
P/E (TTM) at period end	20.28×	30.98×	26.04×	26.61×	29.75×	32.21×	25.44×	30.39×	29.99×	24.15×	25.94×	23.28×	21.97×	20.92×	17.14×	18.18×	14.64×	11.81×	16.59×	20.53×	–	–	–	15.73×	18.70×	26.64×	31.47×	30.63×	28.50×	21.12×	19.39×	17.90×	17.92×	18.19×	18.30×	15.93×	15.11×	12.34×	14.25×	21.36×	18.32×
P/S (TTM) at period end	4.08×	6.15×	5.09×	5.04×	5.32×	5.58×	4.30×	4.94×	4.26×	3.49×	3.32×	3.09×	3.26×	3.11×	2.25×	2.32×	1.98×	1.77×	2.19×	3.00×	–	–	–	2.24×	2.94×	3.51×	4.45×	3.85×	3.59×	2.64×	2.47×	2.44×	2.39×	2.41×	2.42×	2.05×	1.87×	1.38×	1.57×	2.04×	1.61×
P/B at period end	14.84×	20.43×	21.48×	25.88×	27.20×	14.76×	10.91×	12.90×	11.94×	10.86×	8.64×	7.03×	4.99×	4.75×	3.89×	3.79×	3.23×	2.94×	3.77×	4.54×	–	–	–	2.98×	4.02×	5.24×	5.77×	5.33×	5.06×	4.08×	3.81×	3.37×	3.49×	3.58×	3.62×	3.45×	2.84×	2.44×	2.47×	3.22×	2.92×
EV / EBITDA (TTM)	19.42×	21.29×	17.82×	18.23×	20.78×	22.02×	17.44×	20.50×	19.07×	15.50×	14.79×	14.03×	12.64×	12.33×	9.76×	10.01×	7.69×	6.61×	8.63×	11.77×	–	–	–	7.86×	9.83×	11.85×	19.50×	14.87×	14.68×	10.73×	10.39×	9.78×	9.81×	10.10×	10.06×	8.41×	7.47×	5.68×	–	–	–
EV / Sales (TTM)	4.13×	6.21×	5.11×	5.12×	5.44×	5.63×	4.33×	4.96×	4.25×	3.43×	3.21×	2.94×	3.08×	2.99×	2.10×	2.18×	1.80×	1.60×	2.02×	2.77×	–	–	–	1.97×	2.74×	3.27×	4.17×	3.69×	3.53×	2.62×	2.52×	2.47×	2.45×	2.48×	2.44×	2.00×	1.79×	1.41×	1.40×	1.85×	1.47×
Returns
Return on equity	73.2%	65.9%	82.5%	97.2%	91.4%	45.8%	42.9%	42.5%	39.8%	45.0%	33.3%	30.2%	22.7%	22.7%	22.7%	20.9%	22.0%	24.9%	22.7%	22.1%	25.9%	18.2%	17.3%	19.0%	21.5%	19.7%	18.3%	17.4%	17.8%	19.3%	19.6%	18.8%	19.5%	19.7%	19.8%	21.6%	18.8%	19.8%	17.3%	15.1%	15.9%
Return on invested capital	44.4%	34.9%	71.3%	71.1%	55.8%	39.9%	39.3%	40.1%	46.6%	51.6%	45.6%	42.1%	21.4%	26.5%	28.0%	25.4%	29.7%	33.3%	26.2%	27.5%	19.1%	20.1%	18.8%	23.2%	23.4%	27.7%	18.3%	21.1%	20.1%	21.3%	19.0%	18.9%	19.1%	18.6%	19.9%	23.9%	22.2%	20.3%	24.9%	23.2%	23.4%
Dividend yield	2.9%	1.9%	2.2%	2.1%	1.9%	1.9%	2.3%	1.9%	1.9%	2.3%	2.4%	2.7%	2.7%	2.7%	3.1%	3.0%	3.8%	4.0%	2.9%	2.0%	–	–	–	1.8%	1.3%	1.0%	0.8%	0.8%	0.9%	1.2%	1.3%	1.3%	1.3%	1.3%	1.2%	1.4%	1.4%	1.7%	–	–	–
Financial health
Current ratio	1.05×	1.05×	1.01×	0.99×	0.99×	1.07×	1.05×	1.05×	1.05×	1.10×	1.10×	1.06×	1.14×	1.06×	1.09×	1.07×	1.11×	1.10×	1.08×	1.88×	1.84×	1.59×	1.56×	1.84×	2.00×	2.31×	2.36×	1.71×	1.50×	1.77×	1.74×	2.23×	2.06×	1.85×	2.00×	1.77×	1.92×	1.93×	2.46×	2.65×	2.82×
Debt / equity	0.82×	0.64×	0.66×	0.85×	0.93×	0.53×	0.35×	0.37×	0.42×	0.51×	0.45×	0.00×	0.33×	0.04×	0.00×	0.01×	0.01×	0.01×	0.01×	0.01×	0.01×	0.01×	0.01×	0.02×	0.02×	0.02×	0.03×	0.07×	0.13×	0.20×	0.22×	0.19×	0.22×	0.23×	0.26×	0.06×	0.10×	0.30×	0.28×	0.26×	0.50×
Effective tax rate	23.0%	23.2%	23.0%	23.1%	22.5%	22.7%	22.5%	23.7%	17.4%	31.7%	33.2%	33.5%	33.9%	34.4%	34.6%	35.1%	35.2%	30.3%	35.9%	37.1%	38.5%	37.1%	37.4%	38.1%	38.4%	39.4%	34.8%	35.7%	31.5%	29.1%	28.4%	26.1%	25.1%	23.9%	25.0%	24.0%	25.8%	31.0%	33.2%	40.5%	42.2%
Share count
Diluted shares outstanding	403	409	412	416	421	428	433	438	443	450	459	476	483	487	492	498	504	506	527	558	580	590	599	606	631	646	646	637	628	606	591	570	564	566	557	555	588	605	631	629	589

StatisticsIncome statementBalance sheetCash flowDividendsSegments

Income statement · USD millions

Line item	TTM	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018	FY2017	FY2016	FY2015	FY2014	FY2013	FY2012	FY2011	FY2010	FY2009	FY2008	FY2007	FY2006	FY2005	FY2004	FY2003	FY2002	FY2001	FY2000	FY1999	FY1998	FY1997	FY1996	FY1995	FY1994	FY1993	FY1992	FY1991	FY1990	FY1989	FY1988	FY1987	FY1986
Revenue and gross profit
Revenue	$21,947	$21,947	$20,561	$19,203	$18,012	$16,498	$15,005	$14,590	$14,110	$13,274	$12,372	$11,668	$10,938	$10,226	$9,442	$10,595	$9,833	$8,928	$8,838	$8,734	$7,800	$6,836	$7,984	$7,755	$7,147	$7,004	$7,018	$5,939	$5,540	$4,798	$4,112	$3,567	$2,894	$2,469	$2,223	$1,941	$1,772	$1,714	$1,678	$1,549	$1,384	$1,204
Cost of revenue	($11,760)	($11,760)	($11,097)	($10,477)	($9,953)	($9,462)	($8,640)	($8,445)	($8,022)	($7,843)	($7,270)	($6,840)	($6,428)	($6,041)	($5,574)	($6,204)	($5,708)	($5,030)	($4,823)	($4,657)	($3,681)	($3,216)	($4,039)	($3,525)	($3,097)	($2,971)	($2,900)	($2,564)	($2,376)	($2,063)	($1,723)	($1,516)	($1,177)	($1,026)	($927)	($816)	($757)	($742)	($759)	($724)	($649)	($544)
Gross profit	$10,187	$10,187	$9,464	$8,726	$8,059	$7,036	$6,365	$6,145	$6,089	$5,432	$5,102	$4,828	$4,511	$4,185	$3,868	$4,392	$4,125	$3,898	$4,016	$4,076	$4,119	$3,619	$3,945	$4,230	$4,050	$4,034	$4,117	$3,374	$3,164	$2,735	$2,389	$2,050	$1,716	$1,443	$1,296	$1,124	$1,015	$972	$919	$826	$735	$660
Operating expenses
Research and development	($1,029)	($1,029)	($989)	($956)	($845)	($799)	($717)	($674)	($636)	($635)	($628)	($604)	($595)	($718)	($654)	($600)	($577)	($514)	($500)	($526)	($486)	($472)	($550)	($581)	($499)	($475)	($514)	($460)	($412)	($375)	($296)	($250)	($193)	($161)	–	–	–	–	–	–	–	–
Selling, general and administrative	($4,408)	($4,408)	($4,052)	($3,779)	($3,551)	($3,233)	($3,040)	($3,003)	($3,064)	($2,959)	($2,774)	($2,637)	($2,497)	($2,370)	($2,200)	($2,453)	($2,315)	($2,127)	($2,190)	($2,359)	($2,126)	($1,849)	($1,833)	($1,903)	($1,758)	($1,607)	($1,665)	($1,643)	($1,375)	($1,207)	($1,088)	($934)	($792)	($666)	($750)	($654)	($593)	($562)	($504)	($446)	($391)	($350)
Total operating expenses	($6,109)	($6,109)	($4,052)	($3,783)	($3,553)	($3,233)	($3,040)	($3,003)	($3,084)	($2,854)	($2,684)	($2,579)	($2,497)	($1,963)	($1,828)	($2,432)	($2,300)	($2,121)	($2,186)	($2,350)	($2,612)	($2,321)	($2,383)	($2,791)	($2,532)	($2,361)	($2,501)	($2,388)	($2,060)	($1,827)	($1,608)	($1,385)	($1,158)	($975)	($890)	($770)	($707)	($675)	($627)	($553)	($493)	($461)
Total costs and expenses	($17,869)	($17,869)	($15,149)	($14,260)	($13,506)	($12,695)	($11,681)	($11,448)	($11,106)	($10,696)	($9,954)	($9,420)	($8,924)	($8,004)	($7,402)	($8,636)	($8,008)	($7,150)	($7,008)	($7,008)	($6,294)	($5,537)	($6,422)	($6,317)	($5,629)	($5,331)	($5,401)	($4,952)	($4,437)	($3,890)	($3,331)	($2,901)	($2,335)	($2,002)	($1,817)	($1,587)	($1,464)	($1,417)	($1,386)	($1,277)	($1,142)	($1,005)
Operating income	$4,078	$4,078	$5,412	$4,943	$4,506	$3,803	$3,325	$3,142	$3,005	$2,578	$2,418	$2,248	$2,014	$2,223	$2,040	$1,959	$1,825	$1,777	$1,830	$1,726	$1,506	$1,298	$1,562	$1,438	$1,518	$1,673	$1,617	$987	$1,104	$908	$781	$665	$559	$467	$406	$354	$308	$297	$291	$272	$242	$199
Earnings
EBITDA	$4,664	$4,664	$5,994	$5,505	$5,056	$4,318	$3,835	$3,622	$3,414	$2,956	$2,734	$2,537	$2,292	$2,489	$2,291	$2,278	$2,139	$2,087	$2,138	$2,044	$1,836	$1,544	$1,986	$1,875	$1,793	$1,952	$1,938	$1,271	$1,376	$1,153	$1,005	$867	$731	$616	$547	$470	$422	$411	$415	–	–	–
Interest income	$371	$371	$320	$241	$150	$41	$36	$84	$98	$84	$77	$62	$57	$54	$63	$85	$89	$99	$134	($150)	$165	$140	$92	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–
Interest expense	($459)	($459)	($456)	($361)	($253)	($82)	($60)	($107)	($130)	($103)	($80)	($56)	($6)	($6)	($9)	($8)	($9)	($9)	($33)	($80)	($95)	($73)	($32)	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–
Pre-tax income	$5,730	$5,730	$5,310	$4,872	$4,438	$3,804	$3,361	$3,183	$3,006	$2,283	$2,617	$2,235	$2,071	$1,879	$1,710	$2,102	$1,918	$1,863	$1,900	$1,803	$1,624	$1,743	$1,678	$1,495	$1,645	$1,787	$1,525	$1,290	$1,084	$884	$724	$635	$534	$446	$387	$342	$300	$285	$272	$255	$222	$184
Income tax expense	($1,317)	($1,317)	($1,230)	($1,120)	($1,026)	($855)	($763)	($716)	($713)	($398)	($829)	($741)	($694)	($637)	($588)	($726)	($673)	($656)	($575)	($648)	($602)	($671)	($622)	($559)	($627)	($686)	($600)	($449)	($388)	($279)	($210)	($181)	($140)	($112)	($92)	($85)	($72)	($74)	($84)	($85)	($90)	($78)
Net income	$4,414	$4,414	$4,080	$3,752	$3,412	$2,949	$2,598	$2,466	$2,293	$1,885	$1,788	$1,492	$1,452	$1,516	$1,406	$1,388	$1,254	$1,211	$1,333	$1,236	$1,139	$1,554	$1,055	$936	$1,018	$1,101	$925	$841	$697	$605	$514	$455	$395	$329	$294	$256	$228	$212	$188	$170	$132	$106
Per share
Diluted EPS (GAAP)	$10.94	$10.94	$9.98	$9.10	$8.21	$7.00	$6.07	$5.70	$5.24	$4.25	$3.97	$3.25	$3.05	$3.14	$2.89	$2.82	$2.52	$2.40	$2.63	$2.34	$2.01	$1.45	$1.79	$1.18	$1.34	$1.75	$1.44	$1.31	$1.10	$0.98	$0.85	$0.77	$0.69	$0.59	$0.52	$0.46	$0.41	$0.36	$0.31	$0.27	$0.21	$0.18
Basic EPS (GAAP)	$10.97	$10.97	$10.02	$9.14	$8.25	$7.04	$6.10	$5.73	$5.27	$4.28	$3.99	$3.27	$3.07	$3.17	$2.91	$2.85	$2.54	$2.42	$2.65	$2.37	$2.03	$1.46	$1.81	$1.19	$1.36	$1.78	$1.47	$1.34	$1.13	$1.01	$0.88	$0.79	$0.69	$0.59	$0.52	$0.46	$0.41	$0.36	$0.32	$0.28	$0.22	$0.19
Basic shares outstanding	402	402	407	411	414	419	426	431	435	441	448	457	473	479	483	487	494	500	503	522	550	575	583	592	600	619	629	627	616	601	585	576	570	564	566	557	555	588	586	608	600	558
Margins
Gross margin	46.4%	46.4%	46.0%	45.4%	44.7%	42.6%	42.4%	42.1%	43.2%	40.9%	41.2%	41.4%	41.2%	40.9%	41.0%	41.4%	41.9%	43.7%	45.4%	46.7%	52.8%	52.9%	49.4%	54.5%	56.7%	57.6%	58.7%	56.8%	57.1%	57.0%	58.1%	57.5%	59.3%	58.4%	58.3%	57.9%	57.3%	56.7%	54.8%	53.3%	53.1%	54.8%
Operating margin	18.6%	18.6%	26.3%	25.7%	25.0%	23.1%	22.2%	21.5%	21.3%	19.4%	19.5%	19.3%	18.4%	21.7%	21.6%	18.5%	18.6%	19.9%	20.7%	19.8%	19.3%	19.0%	19.6%	18.5%	21.2%	23.9%	23.0%	16.6%	19.9%	18.9%	19.0%	18.7%	19.3%	18.9%	18.3%	18.2%	17.4%	17.3%	17.4%	17.6%	17.5%	16.5%
Net margin	20.1%	20.1%	19.8%	19.5%	18.9%	17.9%	17.3%	16.9%	16.2%	14.2%	14.5%	12.8%	13.3%	14.8%	14.9%	13.1%	12.8%	13.6%	15.1%	14.1%	14.6%	22.7%	13.2%	12.1%	14.2%	15.7%	13.2%	14.2%	12.6%	12.6%	12.5%	12.7%	13.6%	13.3%	13.2%	13.2%	12.9%	12.4%	11.2%	11.0%	9.5%	8.8%

Analyst consensus

Hold36 analysts

Bearish · 5 · Hold · 23 · Bullish · 8

Earnings history

	EPS	Estimate
Q1 2025	$2.33	$2.21	Beat
Q2 2025	$2.35	$2.30	Beat
Q3 2025	$3.06	$2.97	Beat
Q4 2025	$2.26	$2.23	Beat
Q1 2026	$2.49	$2.44	Beat
Q2 2026	$2.62	$2.57	Beat
Q3 2026	$3.37	$3.30	Beat
Q4 2026	$2.64	$2.59	Beat

Peers

Company overview

IPO dateMar 17, 1980

CEOMaria Black

Employees67,000

SectorTechnology

IndustrySoftware - Application

CountryUS

ExchangeNASDAQ Global Select

Websitewww.adp.com

Automatic Data Processing, Inc. (ADP) is a global provider of cloud-based solutions designed for human capital management (HCM). The company organizes its operations into two primary segments: Employer Services and Professional Employer Organization (PEO). Through its Employer Services division, ADP delivers strategic, cloud-powered platforms and comprehensive human resources (HR) outsourcing. This encompasses a wide array of services such as payroll processing, benefits administration, talent acquisition and management, general HR and workforce management, insurance, retirement planning, and regulatory compliance, often integrated into holistic HCM solutions. Conversely, the Professional Employer Organization (PEO) segment specializes in offering HR outsourcing to small and mid-sized businesses, leveraging a co-employment framework. This segment's offerings span robust benefits packages, regulatory protection and compliance, talent engagement strategies, specialized HR expertise, all-encompassing outsourcing, and even recruitment process outsourcing. Established in 1949, ADP maintains its corporate headquarters in Roseland, New Jersey.

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