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Automatic Data Processing, Inc. provides cloud-based human capital management (HCM) solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. This segment's offerings include RUN Powered by ADP, a software platform for small business payroll, HR, and compliance; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Lyric HCM, a solution for HR management, payroll, workforce management, talent, and data analytics. The PEO Services segment provides HR and employment administration outsourcing solutions under ADP TotalSource name to businesses through a co-employment model. The segment also provides guidance, user-friendly technology, comprehensive employee benefits, and a risk management, safety, and workers' compensation program. The company was founded in 1949 and is headquartered in Roseland, New Jersey.
5-year financial trends. Figures in USD millions.
Latest fiscal year: 2025
Year-by-year revenue, profitability, and cash flow (USD millions, last 10 years)
| Year | Revenue | EBITDA | Net Profit | FCF | ROE | Rev Growth 1Y | NP Growth 1Y |
|---|---|---|---|---|---|---|---|
| 2025 | $20.6B | $6.3B | $4.1B | $4.4B | 65.9% | 7.1% | 8.7% |
| 2024 | $19.2B | $5.8B | $3.8B | $3.6B | 82.5% | 6.6% | 10.0% |
| 2023 | $18.0B | $5.2B | $3.4B | $3.6B | 97.2% | 9.2% | 15.7% |
| 2022 | $16.5B | $4.4B | $2.9B | $2.5B | 91.4% | - | - |
Income statement, balance sheet, and cash flow as reported
Consolidated Figures in USD Millions.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Total Revenue | 16,498.30 | 18,012.20 | 19,202.60 | 20,560.90 |
| Cost Of Revenue | 9,461.90 | 9,953.40 | 10,476.70 | 11,097.30 |
| Gross Profit | 7,036.40 | 8,058.80 | 8,725.90 | 9,463.60 |
| Operating Expense | 3,233.20 | 3,551.40 | 3,778.90 | 4,051.70 |
| Operating Income | 3,803.20 | 4,507.40 | 4,947 | 5,411.90 |
| EBITDA | 4,401.10 | 5,240.20 | 5,795.60 | 6,348.40 |
| EBIT | 3,886 | 4,690.90 | 5,233.70 | 5,766 |
| Pretax Income | 3,804.10 | 4,437.60 | 4,872.30 | 5,310.10 |
| Tax Provision | 855.20 | 1,025.60 | 1,120.30 | 1,230.40 |
| Net Income | 2,948.90 | 3,412 | 3,752 | 4,079.70 |
| Net Income Common Stockholders | 2,948.90 | 3,412 | 3,752 | 4,079.70 |
| Total Expenses | 12,695.10 | 13,504.80 | 14,255.60 | 15,149 |
| Interest Expense | 81.90 | 253.30 | 361.40 | 455.90 |
| Interest Income | 41 | 149.50 | 241.30 | 319.50 |
| Selling General And Administration | 3,233.20 | 3,551.40 | 3,778.90 | 4,051.70 |
| Normalized EBITDA | 4,421 | 5,257 | 5,784.40 | 6,345.10 |
| Normalized Income | 2,964.32 | 3,424.92 | 3,743.38 | 4,077.17 |
| Market Cap | 79,131.70 | 79,131.70 | 79,131.70 | 79,131.70 |
Technology sector peers, ranked by market cap
| Company | Ticker | Market Cap | P/E | P/B | ROE | EV/EBITDA |
|---|---|---|---|---|---|---|
| Automatic Data Processing, Inc.this co. | ADP | $80.0B | 19.40↓ discount | 12.79 | 65.9% | 13.37 |
| Cadence Design Systems, Inc. | CDNS | $90.3B | 82.88 | 16.79 | 20.3% | 48.88 |
| Synopsys, Inc. | SNPS | $82.1B | 72.01 | 3.39 | 4.7% | 42.93 |
| Monolithic Power Systems, Inc. | MPWR | $78.4B | 128.99 | 22.70 | 17.6% | 101.24 |
| Ciena Corporation | CIEN |
| $73.8B |
| 597.06 |
| 26.98 |
| 4.5% |
| 190.98 |
| Motorola Solutions, Inc. | MSI | $73.0B | 33.82 | 30.22 | 89.4% | 22.64 |
| Teradyne, Inc. | TER | $66.6B | 118.14 | 23.41 | 19.8% | 83.04 |
| Fortinet, Inc. | FTNT | $63.8B | 33.67 | 50.43 | 149.8% | 24.82 |
| TE Connectivity plc | TEL | $63.7B | 34.20 | 5.01 | 14.6% | 16.40 |
| Peer Median | - | 77.45 | 23.06 | 18.7% | 45.91 | |