Automatic Data Processing
ADP Nasdaq· Human Resource & Employment Services
Last close · Oct 26, 2026
$301.12
KIRA · Stoqly’s AI analyst, in plain words
- Automatic Data Processing had $21.9B of revenue in fiscal 2026, up 6.7% on the year before. Over five years, revenue changed +7.9% a year on average.
- Automatic Data Processing made $4.4B of net profit in fiscal 2026. From fiscal 2017 to 2026, diluted EPS grew 11.9% a year.
- Free cash flow was $5.2B in fiscal 2026, 23.9% of revenue.
- Automatic Data Processing returned $4.7B to shareholders in fiscal 2026, 90% of free cash flow. The diluted share count fell 1.3%.
- Automatic Data Processing owes $734M more than it holds in cash, about 0.1 years of operating profit.
Market cap
$121.4B
P/E
—
Revenue
$21.9B
Net income
$4.4B
Free cash flow
$5.2B
Operating margin
—
Automatic Data Processing in 30 seconds · fiscal 2026
Are sales growing?
+6.7%
Yes. Sales grew 6.7% last year.
Does it make a profit?
20.1%
Yes. It keeps 20.1% of every sale as profit.
Does profit turn into cash?
23.9%
Yes. 23.9% of sales ends up as free cash.
Is debt under control?
0.1x
Yes. It could repay its debt with 0.1 years of operating profit.
How healthy are the accounts?
9 / 9
Solid. It passes 9 of 9 health tests.
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.
Biggest risks, in its own words
- Rapid technology change, including AI, and the need to keep upgrading its products.
- Failing to comply with, or changes in, laws on payroll, privacy, data protection and AI.
- Disruptions to its systems, data centers or cloud services that clients rely on to run payroll.
- Market, interest rate, credit and liquidity risks on the funds it holds for clients.
- Fiscal year ends
- June 30, 2026
- Latest annual report
- 10-K · Aug 5, 2026
- Legal name
- Automatic Data Processing, Inc.
- CIK
- 0000008670
Automatic Data Processing · ADP
Results and finances
The last 5 fiscal years. Amounts in USD.
| Fiscal year | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Sales and profit | |||||
| Revenue | $16.5B | $18.0B | $19.2B | $20.6B | $21.9B |
| Revenue growth | 10.0% | 9.2% | 6.6% | 7.1% | 6.7% |
| Gross margin | 42.7% | 44.7% | 45.4% | 46.0% | 46.4% |
| Net income | $2.9B | $3.4B | $3.8B | $4.1B | $4.4B |
| Net margin | 17.9% | 18.9% | 19.5% | 19.8% | 20.1% |
| Diluted EPS | $7.00 | $8.21 | $9.10 | $9.98 | $10.94 |
| Cash | |||||
| Cash from operations | $3.1B | $4.2B | $4.2B | $4.9B | $5.4B |
| Capital expenditure | $174M | $206M | $208M | $169M | $197M |
| Free cash flow | $2.9B | $4.0B | $3.9B | $4.8B | $5.2B |
| FCF margin | 17.7% | 22.2% | 20.6% | 23.2% | 23.9% |
| Dividends paid | $1.7B | $1.9B | $2.2B | $2.4B | $2.6B |
| Share buybacks | $2.0B | $1.1B | $1.2B | $1.3B | $2.1B |
| Share count change | −1.6% | −1.3% | −0.8% | −0.9% | −1.3% |
| Debt and strength | |||||
| 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 |
| Shareholders' equity | $3.2B | $3.5B | $4.5B | $6.2B | $6.0B |
| Net debt / EBITDA | 0.3x | 0.2x | −0.1x | 0.1x | 0.1x |
| Current ratio | 1.0x | 1.0x | 1.0x | 1.1x | 1.1x |
| Interest coverage | 47.5x | 18.5x | 14.5x | 12.7x | 13.5x |
| Returns and quality | |||||
| Return on capital | — | — | — | 78.2% | 68.8% |
| Return on equity | 66.3% | 101.3% | 93.1% | 76.0% | 72.2% |
| Piotroski F-score | 6 | 6 | 8 | 8 | 9 |
| Altman Z'' | 1.5 | 2.0 | 2.2 | 2.7 | 2.4 |
Insiders bought, 12 months
$0.7M
1 insider
Insiders sold, 12 months
$13.8M
6 insiders
Of sales under plans
100%
$13.8M
How to read these numbers
- Revenue:
- Total sales reported in the income statement.
- Operating margin:
- Operating income as a share of revenue.
- Net income:
- Profit after all expenses, interest and tax.
- Free cash flow:
- Cash from operations minus capital spending.
- Net debt / EBITDA:
- Years of EBITDA needed to pay off net debt. Below zero means more cash than debt.
- Return on capital:
- After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
Automatic Data Processing · ADP
Charts and comparison
Ten years at a glance, and how it stacks up against similar companies.
Revenue
Net income
Margins, % of revenue
Cash vs debt (incl. leases)
Free cash flow
Dividends and buybacks
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 | $121.4B | 6.7% | — | 23.9% | 68.8% | — | 9 |
| Paychex PAYX | $41.3B | 16.9% | 38.6% | 35.7% | 26.2% | 22.9x | 6 |
| Korn Ferry KFY | $4.0B | 6.4% | 12.8% | 11.0% | 21.9% | 14.9x | 8 |
| Paylocity PCTY | $9.7B | 11.0% | 21.8% | 28.1% | 26.5% | — | 8 |
| Upwork UPWK | $1.2B | 2.4% | 16.4% | 30.8% | 31.0% | 12.4x | 6 |
Price compared with profit (P/E)
How many times its yearly profit per share one share costs. Higher means investors pay more for each unit of profit.
KIRA
At $301.12 a share, the company is worth $121.4B.
Automatic Data Processing grew sales faster than 2 of its 4 similar companies.
Source: SEC EDGAR XBRL filings (CIK 0000008670). Data updated October 9, 2026. For information only — not investment advice. Check the original filings before relying on any figure.