Automatic Data Processing Inc (ADP) FinancialsADPFinancialAutomatic Data Processing Inc

Automatic Data Processing Inc (ADP) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is HCM, accounting for 41.4% of total sales, equivalent to $2.12B. Other significant revenue streams include PEO zero-margin benefits pass-throughs and HRO, excluding PEO zero-margin benefits pass-throughs. Understanding this composition is critical for investors evaluating how ADP navigates market cycles within the Employment Services industry.

Evaluating the bottom line, Automatic Data Processing Inc maintains a gross margin of 50.74%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 26.17%, while the net margin is 17.88%. These profitability ratios, combined with a Return on Equity (ROE) of 72.24%, provide a clear picture of how effectively ADP converts its operational activities into shareholder value.

In the context of the broader market, ADP competes directly with industry leaders such as SNOW and ADBE. With a market capitalization of $108.44B, it holds a significant position in the sector. When comparing efficiency, ADP's gross margin of 50.74% stands against SNOW's 66.61% and ADBE's 88.64%. Such benchmarking helps identify whether Automatic Data Processing Inc is trading at a premium or discount relative to its financial performance.

ADP reported total revenue of approximately $22 billion for FY 2026, reflecting a 7% year-over-year growth, with a net income exceeding $4.4 billion and a net margin of approximately 20.1%.