Automatic Data Processing
ADP Nasdaq Human Resource & Employment Services Financials FY2017–FY2026
Automatic Data Processing's revenue rose 6.7% to $21.9 billion in fiscal 2026. Its net margin was 20.1%, up from 19.8% a year earlier. Free cash flow was $5.2 billion, up 9.9%. It paid out $4.7 billion in dividends and buybacks, 90% of free cash flow. The diluted share count fell 1.3%.
What Automatic Data Processing does
ADP sells payroll and human resources software and services to employers, from single-employee small businesses to large companies with tens of thousands of employees. Its cloud-based products handle payroll, benefits, time tracking and tax filing. It also sells HR outsourcing, which ADP says serves over three million client employees. In fiscal 2026, in the United States, it moved more than $3.5 trillion in client funds to employees, tax authorities and other payees.
ADP reports two segments. Employer Services sells the software and outsourcing. The Professional Employer Organization (PEO) segment, called ADP TotalSource, shares the role of employer with each client. In a PEO, ADP and the client are both employers of the client's staff, called worksite employees, and ADP provides benefits, risk management and workers' compensation programs. ADP says the PEO serves more than 19,000 clients and more than 770,000 worksite employees in all 50 U.S. states.
ADP says it competes with other business outsourcing companies, companies that provide ERP (business management software) services, providers of cloud-based HR software and financial institutions. It also says no one client or industry is material to its overall revenues. It is adding AI agents to its products. In fiscal 2026 it invested approximately $1.405 billion in research and development.
- Legal name
- Automatic Data Processing, Inc.
- Fiscal year ends
- June 30, 2026
- Latest annual report
- 10-K · Aug 5, 2026
- Accession · CIK
- 0000008670-26-000030
0000008670
Revenue and margins
Automatic Data Processing had $21.9B of revenue in fiscal 2026, up 6.7% on the year before.
Net income and earnings per share
From fiscal 2017 to 2026, diluted EPS grew 11.9% a year. Loss periods are shown in red.
Returns on capital
After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
Cash flow
Free cash flow was $5.2B in fiscal 2026, 23.9% of revenue. Cash from operations minus capital spending.
Dividends, buybacks and share count
Automatic Data Processing returned $4.7B to shareholders in fiscal 2026, 90% of free cash flow. The diluted share count fell 1.3%.
Value Automatic Data Processing yourself
Change the assumptions and see what they imply per share. These are models, not forecasts or price targets — the answer depends entirely on what you put in.
Discounted cash flow
Value per share
—
Adds net cash of −$734M and divides by 403.3M diluted shares. Ten years of cash flows plus a terminal value, discounted to today.
Earnings multiple
Value per share
—
Reference multiples: today 27.8x · peers 19.1x · sector 26.0x.
Balance sheet
Cash, debt and the ratios that show how comfortably Automatic Data Processing can carry it.
| Fiscal year end | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash and short-term investments | $1.5B | $2.1B | $3.3B | $7.8B | $4.2B |
| Debt incl. finance leases | $3.0B | $3.0B | $3.0B | $8.7B | $5.0B |
| Net debt / EBITDA | 0.3x | 0.2x | −0.1x | 0.1x | 0.1x |
| Debt / equity | 0.9x | 0.9x | 0.7x | 1.4x | 0.8x |
| Interest coverage | 47.5x | 18.5x | 14.5x | 12.7x | 13.5x |
| Current ratio | 1.0x | 1.0x | 1.0x | 1.1x | 1.1x |
| Quick ratio | 1.0x | 1.0x | 1.0x | 1.1x | 1.1x |
| Total assets | $63.1B | $51.0B | $54.4B | $53.4B | $63.2B |
| Total liabilities | $59.8B | $47.5B | $49.8B | $47.2B | $57.2B |
| Shareholders' equity | $3.2B | $3.5B | $4.5B | $6.2B | $6.0B |
| Net debt (− = net cash) | $1.5B | $891M | −$306M | $898M | $734M |
Insider trades
Open-market purchases and sales by officers, directors and 10% owners, from Form 4 filings. 'Plan' marks trades under a pre-arranged Rule 10b5-1 plan.
Bought, 12 months
$0.7M
1 insider
Sold, 12 months
$12.7M
6 insiders
Of sales under plans
100%
$12.7M
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Sep 3, 2026 | Joseph DeSilvaExecutive VP | Sold plan | 631 | $282.87 | $0.2M | Form 4 |
| Sep 2, 2026 | Christopher D'AmbrosioCorp. VP | Sold plan | 1,872 | $283.00 | $0.5M | Form 4 |
| Sep 2, 2026 | David FoskettCorp. VP | Sold plan | 1,529 | $283.00 | $0.4M | Form 4 |
| Sep 2, 2026 | Joseph DeSilvaExecutive VP | Sold plan | 6,512 | $283.00 | $1.8M | Form 4 |
| Sep 2, 2026 | Maria BlackPresident & CEO | Sold plan | 29,810 | $280.91 | $8.4M | Form 4 |
| Aug 21, 2026 | Brian L. MichaudExecutive VP | Sold plan | 120 | $279.70 | $0.0M | Form 4 |
| Aug 20, 2026 | David KwonCorp VP | Sold plan | 798 | $280.00 | $0.2M | Form 4 |
| Jul 30, 2026 | David KwonCorp VP | Sold plan | 2,414 | $265.62 | $0.6M | Form 4 |
| May 8, 2026 | Brian L. MichaudExecutive VP | Sold plan | 848 | $212.13 | $0.2M | Form 4 |
| May 7, 2026 | Robert Holmes SwanDirector | Bought plan | 3,619 | $206.05 | $0.7M | Form 4 |
| Apr 14, 2026 | Christopher D'AmbrosioCorp. VP | Sold plan | 543 | $195.74 | $0.1M | Form 4 |
| Mar 16, 2026 | Christopher D'AmbrosioCorp. VP | Sold plan | 543 | $208.45 | $0.1M | Form 4 |
Piotroski F-score
Nine pass/fail tests of profitability, funding and efficiency. 8–9 is strong, 0–2 weak.
| Test | FY24 | FY25 | FY26 |
|---|---|---|---|
| Net income is positive | ✓ | ✓ | ✓ |
| Cash from operations is positive | ✓ | ✓ | ✓ |
| Return on assets rose | ✓ | ✓ | ✓ |
| Cash from operations exceeds net income | ✓ | ✓ | ✓ |
| Debt fell relative to assets | ✕ | ✕ | ✓ |
| Current ratio rose | ✓ | ✓ | ✓ |
| Share count didn't rise | ✓ | ✓ | ✓ |
| Gross margin rose | ✓ | ✓ | ✓ |
| Revenue rose relative to assets | ✓ | ✓ | ✓ |
| F-score | 8 / 9 | 8 / 9 | 9 / 9 |
| Accruals ratio | −0.8% | −1.6% | −1.8% |
| Altman Z'' | 2.22 | 2.65 | 2.42 |
Similar companies
Each company's latest fiscal year. Fiscal years end in different months, so periods don't line up exactly.
| Company | Market cap | Growth | Op. margin | FCF margin | ROIC | P/E | F-score | |
|---|---|---|---|---|---|---|---|---|
| Automatic Data Processing ADP | $122.7B | 6.7% | — | 23.9% | 68.8% | — | 9 | |
| Paychex PAYX | $42.1B | 16.9% | 38.6% | 35.7% | 26.2% | 23.4x | 6 | Compare → |
| Korn Ferry KFY | $4.0B | 6.4% | 12.8% | 11.0% | 21.9% | 14.8x | 8 | Compare → |
| Paylocity PCTY | $9.7B | 11.0% | 21.8% | 28.1% | 26.5% | — | 8 | Compare → |
| Upwork UPWK | $1.2B | 2.4% | 16.4% | 30.8% | 31.0% | 12.3x | 6 | Compare → |
10 years of figures
US$ millions unless stated. Hover a ratio's name for its definition.
| Fiscal year | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | $12.4B | $13.3B | $14.1B | $14.6B | $15.0B | $16.5B | $18.0B | $19.2B | $20.6B | $21.9B |
| Gross profit | $5.1B | $5.5B | $6.1B | $6.1B | $6.4B | $7.0B | $8.1B | $8.7B | $9.5B | $10.2B |
| Research and development | — | — | — | — | — | $799M | $845M | $956M | $989M | $1.0B |
| Interest expense | $80.0M | $103M | $130M | $107M | $59.7M | $81.9M | $253M | $361M | $456M | $459M |
| Pretax income | $2.6B | $2.3B | $3.0B | $3.2B | $3.4B | $3.8B | $4.4B | $4.9B | $5.3B | $5.7B |
| Income tax | $829M | $398M | $713M | $716M | $763M | $855M | $1.0B | $1.1B | $1.2B | $1.3B |
| Net income | $1.8B | $1.9B | $2.3B | $2.5B | $2.6B | $2.9B | $3.4B | $3.8B | $4.1B | $4.4B |
| Diluted EPS | $3.97 | $4.25 | $5.24 | $5.70 | $6.07 | $7.00 | $8.21 | $9.10 | $9.98 | $10.94 |
| Diluted shares | 0.45B | 0.44B | 0.44B | 0.43B | 0.43B | 0.42B | 0.42B | 0.41B | 0.41B | 0.40B |
| Cash flow | ||||||||||
| Cash from operations | $2.1B | $2.5B | $2.7B | $3.0B | $3.1B | $3.1B | $4.2B | $4.2B | $4.9B | $5.4B |
| Capital expenditure | $240M | $206M | $162M | $173M | $179M | $174M | $206M | $208M | $169M | $197M |
| Free cash flow | $1.9B | $2.3B | $2.5B | $2.9B | $2.9B | $2.9B | $4.0B | $3.9B | $4.8B | $5.2B |
| Depreciation and amortization | $316M | $378M | $409M | $480M | $511M | $515M | $549M | $562M | $582M | $586M |
| Stock-based compensation | $139M | $175M | $167M | $131M | $175M | $202M | $220M | $244M | $266M | $243M |
| Acquisitions | $87.4M | $612M | $126M | $0.0M | $0.0M | $11.7M | $32.4M | $33.6M | $1.2B | $22.8M |
| Share buybacks | $1.3B | $989M | $938M | $1.0B | $1.4B | $2.0B | $1.1B | $1.2B | $1.3B | $2.1B |
| Dividends paid | $995M | $1.1B | $1.3B | $1.5B | $1.6B | $1.7B | $1.9B | $2.2B | $2.4B | $2.6B |
| Dividends and buybacks | $2.3B | $2.1B | $2.2B | $2.5B | $2.9B | $3.6B | $3.0B | $3.4B | $3.7B | $4.7B |
| Balance sheet | ||||||||||
| Cash and short-term investments | $2.8B | $2.2B | $2.0B | $1.9B | $2.6B | $1.5B | $2.1B | $3.3B | $7.8B | $4.2B |
| Total debt | $2.0B | $2.0B | $2.0B | $2.0B | $3.0B | $3.0B | $3.0B | $3.0B | $8.7B | $5.0B |
| Finance lease liabilities | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Current assets | $32.7B | $31.8B | $34.3B | $31.6B | $40.7B | $54.8B | $42.2B | $45.5B | $43.3B | $52.6B |
| Current liabilities | $29.8B | $30.4B | $32.6B | $30.1B | $38.1B | $55.2B | $42.8B | $45.1B | $41.3B | $50.0B |
| Inventory | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Property and equipment, net | $780M | $794M | $764M | $704M | $685M | $653M | $681M | $686M | $655M | $641M |
| Total assets | $38.9B | $38.8B | $41.9B | $39.2B | $48.8B | $63.1B | $51.0B | $54.4B | $53.4B | $63.2B |
| Total liabilities | $33.2B | $34.1B | $36.5B | $33.4B | $43.1B | $59.8B | $47.5B | $49.8B | $47.2B | $57.2B |
| Shareholders' equity | $4.0B | $4.7B | $5.4B | $5.8B | $5.7B | $3.2B | $3.5B | $4.5B | $6.2B | $6.0B |
| Margins | ||||||||||
| Gross margin | 41.4% | 41.6% | 43.2% | 42.1% | 42.4% | 42.7% | 44.7% | 45.4% | 46.0% | 46.4% |
| EBITDA margin | 24.4% | 20.8% | 25.1% | 25.8% | 26.2% | 26.7% | 29.1% | 30.2% | 30.9% | 30.9% |
| Net margin | 14.5% | 14.2% | 16.3% | 16.9% | 17.3% | 17.9% | 18.9% | 19.5% | 19.8% | 20.1% |
| FCF margin | 15.2% | 17.4% | 17.9% | 19.6% | 19.4% | 17.7% | 22.2% | 20.6% | 23.2% | 23.9% |
| Returns | ||||||||||
| Return on capital | — | — | — | — | 44.4% | — | — | — | 78.2% | 68.8% |
| Return on capital employed | 31.9% | 27.3% | 35.4% | 36.0% | 34.7% | 41.8% | 58.2% | 59.9% | 54.0% | 49.0% |
| Return on equity | 42.3% | 43.3% | 45.2% | 44.2% | 45.5% | 66.3% | 101.3% | 93.1% | 76.0% | 72.2% |
| Return on assets | 4.3% | 4.9% | 5.7% | 6.1% | 5.9% | 5.3% | 6.0% | 7.1% | 7.6% | 7.6% |
| Growth | ||||||||||
| Revenue growth | 6.0% | 7.3% | 6.3% | 3.4% | 2.9% | 10.0% | 9.2% | 6.6% | 7.1% | 6.7% |
| Net income growth | 19.8% | 5.4% | 21.6% | 7.6% | 5.4% | 13.5% | 15.7% | 10.0% | 8.7% | 8.2% |
| EPS growth | 22.2% | 7.1% | 23.3% | 8.8% | 6.5% | 15.3% | 17.3% | 10.8% | 9.7% | 9.6% |
| FCF growth | 9.1% | 22.5% | 9.4% | 13.0% | 2.1% | 0.4% | 36.8% | −1.3% | 20.8% | 9.9% |
| Share count change | −1.9% | −1.6% | −1.3% | −1.1% | −1.1% | −1.6% | −1.3% | −0.8% | −0.9% | −1.3% |
| Financial health | ||||||||||
| Net debt / EBITDA | −0.3x | −0.1x | 0.0x | 0.0x | 0.1x | 0.3x | 0.2x | −0.1x | 0.1x | 0.1x |
| Debt / equity | 0.5x | 0.4x | 0.4x | 0.4x | 0.5x | 0.9x | 0.9x | 0.7x | 1.4x | 0.8x |
| Interest coverage | 33.7x | 23.2x | 24.1x | 30.7x | 57.3x | 47.5x | 18.5x | 14.5x | 12.7x | 13.5x |
| Current ratio | 1.1x | 1.1x | 1.1x | 1.1x | 1.1x | 1.0x | 1.0x | 1.0x | 1.1x | 1.1x |
| Quick ratio | 1.1x | 1.1x | 1.1x | 1.1x | 1.1x | 1.0x | 1.0x | 1.0x | 1.1x | 1.1x |
| Capital allocation | ||||||||||
| Capex / revenue | 1.9% | 1.6% | 1.2% | 1.2% | 1.2% | 1.1% | 1.2% | 1.1% | 0.8% | 0.9% |
| Stock comp / revenue | 1.1% | 1.3% | 1.2% | 0.9% | 1.2% | 1.2% | 1.2% | 1.3% | 1.3% | 1.1% |
| Payouts / FCF | 119.6% | 88.9% | 88.3% | 86.8% | 101.1% | 124.0% | 75.6% | 86.5% | 77.1% | 89.8% |
| Quality scores | ||||||||||
| Piotroski F-score | 6.0 | 7.0 | 9.0 | 5.0 | 8.0 | 6.0 | 6.0 | 8.0 | 8.0 | 9.0 |
| Altman Z'' | 2.3 | 2.0 | 2.1 | 2.5 | 2.3 | 1.5 | 2.0 | 2.2 | 2.7 | 2.4 |
| Accruals ratio | −0.8% | −1.6% | −1.0% | −1.4% | −1.1% | −0.3% | −1.4% | −0.8% | −1.6% | −1.8% |
Source: SEC EDGAR XBRL filings (CIK 0000008670). Data updated October 9, 2026. Quarterly fourth quarters are the full year minus the first nine months. For information only — not investment advice. Check the original filings before relying on any figure.