At a glance
Automatic Data Processing Inc is worth $117.95B, about 27 times its fiscal 2026 earnings. Revenue grew 6.7% to $21.95B in fiscal 2026, with 20.1% kept as profit; over 5 years it has grown 7.9% a year. It pays a 2.28% dividend yield, raised every year for at least 9 years, and returned $18.46B to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned +18.1% over the past year with dividends reinvested and +8.3% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 39.4% in the 2020 crash (S&P 500: 33.7%) and 19.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 9 months and 5 months after the lows.
The business in plain English
ADP, founded in 1949 to process payroll, sells human capital management (HCM) software and services: the tools employers use to hire, pay and manage workers. Its annual report for the fiscal year ended June 30, 2026, counts over 1.1 million clients and over 42 million workers paid in over 140 countries and territories. In the U.S., ADP pays about 1 in 6 workers. Its RUN platform serves over 980,000 small businesses, while Workforce Now and Lyric serve mid-sized and large employers.
ADP reports two segments. Employer Services brought in $14.8 billion, about two-thirds of fiscal 2026 revenue of $21.9 billion. It sells payroll and payroll tax filing, benefits administration, time tracking, HR, compliance and retirement services. PEO Services ($7.1 billion, about a third) is ADP TotalSource, a professional employer organization. It becomes the co-employer of a client's staff and provides their benefits, HR support and a workers' compensation program. About $4.6 billion of PEO revenue (21% of ADP's total) was benefits costs passed through at zero margin, so it adds to sales but not profit.
ADP also earns interest on client payroll and tax money it holds before paying it out: $1.35 billion, or 6.2% of revenue. The U.S. produced 87.8% of revenue; Europe, the Middle East and Africa, 7.9%; and Canada, 2.4%.
Price history
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ADP +18.1% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| HCM | $9.11B | 41.5% |
| PEO zero-margin benefits pass-throughs | $4.61B | 21% |
| HRO, excluding PEO zero-margin benefits pass-throughs | $3.97B | 18.1% |
| Global | $2.90B | 13.2% |
| Interest on funds held for clients | $1.35B | 6.2% |
By business segment
| Employer Services | $14.83B | 67.6% |
| PEO Services | $7.13B | 32.5% |
By geography
| United States | $19.28B | 87.8% |
| EMEA | $1.73B | 7.9% |
| Canada | $523.7M | 2.4% |
| Other | $410.6M | 1.9% |
Latest results
- In Q1 FY2027 (ended Sep 30, 2026), revenue was $5.49B, up 6.1% from a year earlier, and net income was $1.13B (+11.1%).
- For fiscal 2026, revenue was $21.95B (+6.7% year over year; +7.9% a year from FY2021 to FY2026) with a 20.1% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +7.9% good |
|---|---|
| Free cash flow margin | 23.9% good |
| Return on equity (FY2026) | 73.2% (lifted by a small equity base, often the result of years of buybacks) good |
| Return on assets (FY2026) | 7% watch |
| Net cash (cash minus debt) | $-1.49B watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $15.01B | $2.60B | $2.91B |
| FY2022 | $16.50B | $2.95B | $2.93B |
| FY2023 | $18.01B | $3.41B | $4.00B |
| FY2024 | $19.20B | $3.75B | $3.95B |
| FY2025 | $20.56B | $4.08B | $4.77B |
| FY2026 | $21.95B | $4.41B | $5.24B |
Valuation snapshot
| Market value | $117.95B |
|---|---|
| P/E ratio | 27.3 |
| Dividend yield | 2.28% |
Rank among 1514 US companies
Market value at each year end
Automatic Data Processing’s market value went from $46.37B at the end of 2016 to $117.95B on Nov 2, 2026, about 2.5 times as much; since the end of 2025 it is up 13%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $117.95B | +13.4% |
| 2025 | $104.04B | -12.8% |
| 2024 | $119.27B | +24.5% |
| 2023 | $95.82B | -3.3% |
| 2022 | $99.09B | -4.6% |
| 2021 | $103.90B | +37.5% |
| 2020 | $75.56B | +2.4% |
| 2019 | $73.78B | +28.5% |
| 2018 | $57.40B | +10.4% |
| 2017 | $51.97B | +12.1% |
| 2016 | $46.37B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| ADP price data to Nov 2, 2026 | +18.7% | +18.1% | +13.9% | +8.3% | +15.3% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +18.7% |
| 2025 | -10.2% |
| 2024 | +29.1% |
| 2023 | -0.2% |
| 2022 | -1.3% |
| 2021 | +42.6% |
| 2020 | +6.0% |
| 2019 | +32.7% |
| 2018 | +14.3% |
| 2017 | +16.5% |
| 2016 | +24.3% |
| 2015 | +4.1% |
| 2014 | +20.2% |
| 2013 | +45.6% |
| 2012 | +8.6% |
| 2011 | +20.1% |
| 2010 | +11.6% |
| 2009 | +12.7% |
| 2008 | -9.1% |
| 2007 | +2.6% |
| 2006 | +8.9% |
| 2005 | +4.8% |
| 2004 | +13.2% |
| 2003 | +2.1% |
| 2002 | -32.8% |
| 2001 | -6.2% |
| 2000 | +18.1% |
| 1999 | +35.2% |
| 1998 | +31.5% |
| 1997 | +44.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 28.8% over that stretch · deepest drop along the way 35.7%, back to its old high 24.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 39.4% over that stretch · deepest drop along the way 39.4%, back to its old high 8.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 6.9% over that stretch · deepest drop along the way 19.9%, back to its old high 5.3 months after the low |
Insider activity
Form 4 filings from 2025-11-03 to 2026-11-03 (25 read): 0 open-market purchases and 21 sales ($12.5M), 21 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 2, 2026 | Maria Black President & CEO | sell (plan) | $3.0M |
| Sep 2, 2026 | Maria Black President & CEO | sell (plan) | $2.2M |
| Sep 2, 2026 | Joseph DeSilva Executive VP | sell (plan) | $1.8M |
| Oct 30, 2026 | Virginia Magliulo Executive VP | sell (plan) | $860K |
| Sep 2, 2026 | Maria Black President & CEO | sell (plan) | $811K |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.51% | Mar 31, 2026 |
| STATE STREET CORPORATION | 5.1% | Jun 30, 2026 |
ETFs with the most weight in ADP
| QQLV Invesco QQQ Low Volatility ETF | 4.79% |
| JGRW Jensen Quality Growth ETF | 4.29% |
| DIVL Madison Dividend Value ETF | 4.19% |
| DEMZ Democratic Large Cap Core ETF | 4.06% |
| XLI Industrial Select Sector SPDR Fund | 3.07% |
| VSMV VictoryShares US Multi-Factor Minimum Volatility ETF | 3.01% |
| QOWZ Invesco Nasdaq Free Cash Flow Achievers ETF | 2.76% |
| KONG Formidable Fortress ETF | 2.58% |
What could go wrong
- Rule changes could cut interest on client funds. ADP earned $1.35 billion in fiscal 2026 investing client funds before paying them out. Rules that cut tax withholding or shorten the time to pay tax authorities would shrink those balances and that income.
- PEO clients might not pay their workers' costs. As co-employer, ADP may be liable for worksite employees' wages, taxes and benefits if a client fails to pay. A bank failure or wider banking stress would make that risk greater.
- PEO model depends on its legal status. TotalSource's benefit plans depend on it counting as the employer under the tax code and ERISA, the federal benefits law. Those definitions aren't uniform, and new rules could reduce demand for its PEO.
- AI could shift what clients want. ADP says its industry faces rapid technological change, including from AI. If its technology and services fall behind client needs, demand for its payroll and HR services could shrink materially.
- Outages or security failures could hurt trust. ADP pays over 42 million workers and relies on data centers and cloud services. Disruptions, or failing to comply with privacy, AI and cyber security laws, could hurt its reputation and results.
- Tax law changes could hit profits. Changes in U.S. or foreign tax laws could raise ADP's effective tax rate. If hiring-related tax credits lapse, that would hurt its Tax Credit Services business, which helps U.S. clients claim them.
Recent events
- Quarterly results released
- Quarterly results released
- Major agreement signed; New debt or financial obligation
- Major agreement signed; Other company announcement
- Quarterly results released
- Quarterly results released
- Shareholder vote results
For income and retirement investors
ADP's filings show at least nine consecutive annual dividend increases through fiscal 2026. Regular dividends per share rose from $3.70 in fiscal 2021 to $6.64 in fiscal 2026, about 12.4% a year. Dividends paid in fiscal 2026 equaled 59.5% of net income and 50.1% of free cash flow (cash left after running and investing in the business). The yield was 2.32% as of October 27, 2026. ADP also spent $7.7 billion on buybacks over fiscal 2022–2026, alongside $10.8 billion in dividends, and its share count fell 5.7% between October 2021 and July 2026.
In the 2008 financial crisis, the shares fell 35.7% and took about 24 months from the bottom to recover. They dropped 39.4% in the 2020 COVID crash and recovered in about nine months. They fell 19.9% in early 2022 and were back by August. They also fell as much as 32.5% in the 12 months to October 27, 2026. A single stock carries more risk than a diversified fund.
Questions investors ask
How does ADP make money?
ADP makes most of its money selling payroll, HR and benefits services to employers. Revenue was $21.9 billion in fiscal 2026, which ended June 30, 2026. Human capital management (HCM) solutions brought in 41.5%; PEO benefits costs passed through at zero margin, 21%; other HR outsourcing (HRO), 18.1%; and Global solutions, 13.2%. Interest earned on client funds added 6.2%. The U.S. produced 87.8% of revenue.
Does ADP raise its dividend every year?
Yes. ADP's SEC filings show at least nine consecutive annual dividend increases through fiscal 2026, and the streak may be longer. Regular dividends per share rose from $6.02 in fiscal 2025 to $6.64 in fiscal 2026 and have grown about 12.4% a year since fiscal 2021. Dividends paid equaled 59.5% of fiscal 2026 net income and 50.1% of free cash flow. The dividend yield was 2.32% as of October 27, 2026.
What is ADP TotalSource?
ADP TotalSource is ADP's professional employer organization, or PEO. Under this co-employment arrangement, the client and ADP jointly employ the client's workers, and ADP supplies employee benefits, HR guidance, technology and a safety and workers' compensation program. PEO Services brought in $7.1 billion, about a third of fiscal 2026 revenue, though about $4.6 billion of that was benefits costs passed through at zero margin. As co-employer, ADP may be liable for wages and taxes if a client fails to pay.
Does ADP make money from interest on client funds?
Yes. ADP invests the payroll and tax money it holds for clients before paying it out. In fiscal 2026 that interest brought in $1.35 billion, or 6.2% of revenue. ADP warns that rules reducing tax withholding or shortening the time to pay tax authorities would shrink client balances and this income. Past legal changes have also forced it to change how it invests client funds.
How has ADP stock performed over the long term?
ADP's shares gained about 15.5% a year over the 10 years to October 27, 2026, or 324% in total, based on share prices. Over five years the gain was 8.2% a year, and over one year 7.5%. The path was uneven: the shares fell about 10.2% in 2025 and dropped as much as 32.5% in the 12 months to that date. Their P/E ratio (share price divided by earnings per share) was 26.8 on that date, using fiscal 2026 earnings.