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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% | - | - |
| 2021 |
Income statement, balance sheet, and cash flow as reported
Consolidated Figures in USD Millions.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Total Revenue | - | 16,498.30 | 18,012.20 | 19,202.60 | 20,560.90 |
| Operating 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 |
| Selling General And Administration | - | 3,233.20 | 3,551.40 | 3,778.90 | 4,051.70 |
| Total Expenses | - | 12,695.10 | 13,504.80 | 14,255.60 | 15,149 |
| 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 |
| Normalized EBITDA | - | 4,421 | 5,257 | 5,784.40 | 6,345.10 |
| EBIT | - | 3,886 | 4,690.90 | 5,233.70 | 5,766 |
| Interest Income | - | 41 | 149.50 | 241.30 | 319.50 |
| Interest Expense | - | 81.90 | 253.30 | 361.40 | 455.90 |
| Net Interest Income | - | -40.90 | -103.80 | -120.10 | -136.40 |
| Other Non Operating Income Expenses | - | 61.70 | 50.80 | 34.20 | 31.30 |
| Other Income Expense | - | 41.80 | 34 | 45.40 | 34.60 |
| Interest Income Non Operating | - | 41 | 149.50 | 241.30 | 319.50 |
| Interest Expense Non Operating | - | 81.90 | 253.30 | 361.40 | 455.90 |
| Net Non Operating Interest Income Expense | - | -40.90 | -103.80 | -120.10 | -136.40 |
| 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 |
| Tax Rate For Calcs | - | 0 | 0 | 0 | 0 |
| Tax Effect Of Unusual Items | - | -4.48 | -3.88 | 2.58 | 0.77 |
| Net Income Continuous Operations | - | 2,948.90 | 3,412 | 3,752 | 4,079.70 |
| Net Income From Continuing And Discontinued Operation | - | 2,948.90 | 3,412 | 3,752 | 4,079.70 |
| Net Income From Continuing Operation Net Minority Interest | - | 2,948.90 | 3,412 | 3,752 | 4,079.70 |
| 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 |
| Net Income Including Noncontrolling Interests | - | 2,948.90 | 3,412 | 3,752 | 4,079.70 |
| Normalized Income | - | 2,964.32 | 3,424.92 | 3,743.38 | 4,077.17 |
| Diluted NI Availto Com Stockholders | - | 2,948.90 | 3,412 | 3,752 | 4,079.70 |
| Basic Average Shares | - | 418.80 | 413.70 | 410.60 | 407.10 |
| Diluted Average Shares | - | 421.10 | 415.70 | 412.20 | 408.70 |
| Reconciled Depreciation | - | 515.10 | 549.30 | 561.90 | 582.40 |
| Reconciled Cost Of Revenue | - | 9,461.90 | 9,953.40 | 10,476.70 | 11,097.30 |
| Total Unusual Items | - | -19.90 | -16.80 | 11.20 | 3.30 |
| Total Unusual Items Excluding Goodwill | - | -19.90 | -16.80 | 11.20 | 3.30 |
| Special Income Charges | - | -15.50 | -2.10 | 17.10 | 5 |
| Write Off | - | 23 | 2.10 | 0 | 0 |
| Gain On Sale Of Security | - | -4.40 | -14.70 | -5.90 | -1.70 |
| General And Administrative Expense | - | 3,233.20 | 3,551.40 | 3,778.90 | - |
| Other Gand A | - | 3,233.20 | 3,551.40 | 3,778.90 | - |
| Salaries And Wages | - | -61.70 | -50.80 | -34.20 | - |
| Gain On Sale Of Ppe | - | 7.50 | 0 | 17.10 | 5 |
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 | $92.5B | 22.66↓ discount | 14.94 | 65.9% | 14.76 |
| Adobe Inc. | ADBE | $104.5B | 14.65 | 8.99 | 61.3% | 10.65 |
| Synopsys, Inc. | SNPS | $94.7B | 71.07 | 3.34 | 4.7% | 42.40 |
| Datadog, Inc. | DDOG | $86.7B | 804.83 | 23.23 | 2.9% | 430.85 |
| Intuit Inc. | INTU | $82.6B |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| 21.35 |
| 4.19 |
| 19.6% |
| 14.66 |
| Coherent Corp. | COHR | $82.5B | 1672.07 | 14.62 | 0.9% | 95.98 |
| NXP Semiconductors N.V. | NXPI | $81.4B | 40.25 | 8.09 | 20.1% | 22.89 |
| Monolithic Power Systems, Inc. | MPWR | $81.2B | 130.64 | 22.99 | 17.6% | 102.56 |
| Ciena Corporation | CIEN | $75.8B | 614.93 | 27.79 | 4.5% | 196.65 |
| Peer Median | - | 100.86 | 11.80 | 11.2% | 69.19 | |