Automatic Data Processing Inc Financials

ADP

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE June

This page shows Automatic Data Processing Inc (ADP) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Financial Profile 65/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Growth

Automatic Data Processing Inc's revenue grew 7.1% year-over-year to $20.6B, a solid pace of expansion. This earns a growth score of 49/100.

Leverage

Automatic Data Processing Inc carries a low D/E ratio of 0.64, meaning only $0.64 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 87/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

Automatic Data Processing Inc's current ratio of 1.05 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 22/100, which could limit financial flexibility.

Returns

100

Automatic Data Processing Inc earns a strong 65.9% return on equity (ROE), meaning it generates $66 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100. This is down from 82.5% the prior year.

Piotroski F-Score Strong

8/9

Automatic Data Processing Inc passes 8 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 2 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.

Earnings Quality Cash-Backed

1.21x

For every $1 of reported earnings, Automatic Data Processing Inc generates $1.21 in operating cash flow ($4.9B OCF vs $4.1B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Key Financial Metrics

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Revenue

$20.6B

YoY+7.1%

5Y CAGR+7.1%

10Y CAGR+6.5%

Automatic Data Processing Inc generated $20.6B in revenue in fiscal year 2025. This represents an increase of 7.1% from the prior year.

EBITDA

N/A

Free Cash Flow

N/A

Net Income

$4.1B

YoY+8.7%

5Y CAGR+10.6%

10Y CAGR+10.9%

Automatic Data Processing Inc reported $4.1B in net income in fiscal year 2025. This represents an increase of 8.7% from the prior year.

EPS (Diluted)

$9.98

YoY+9.7%

5Y CAGR+11.9%

10Y CAGR+12.6%

Automatic Data Processing Inc earned $9.98 per diluted share (EPS) in fiscal year 2025. This represents an increase of 9.7% from the prior year.

Cash & Debt

$3.3B

YoY+14.9%

5Y CAGR+11.9%

10Y CAGR+7.4%

Automatic Data Processing Inc held $3.3B in cash against $4.0B in long-term debt as of fiscal year 2025.

Dividends Per Share

$6.02

YoY+10.5%

5Y CAGR+11.3%

10Y CAGR+11.9%

Automatic Data Processing Inc paid $6.02 per share in dividends in fiscal year 2025. This represents an increase of 10.5% from the prior year.

Shares Outstanding

405M

YoY-0.7%

5Y CAGR-1.2%

10Y CAGR-1.4%

Automatic Data Processing Inc had 405M shares outstanding in fiscal year 2025. This represents a decrease of 0.7% from the prior year.

Gross Margin

46.0%

YoY+0.6pp

5Y CAGR+3.9pp

Automatic Data Processing Inc's gross margin was 46.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.6 percentage points from the prior year.

Operating Margin

N/A

Net Margin

19.8%

YoY+0.3pp

5Y CAGR+2.9pp

10Y CAGR+6.6pp

Automatic Data Processing Inc's net profit margin was 19.8% in fiscal year 2025, showing the share of revenue converted to profit. This is up 0.3 percentage points from the prior year.

Return on Equity

65.9%

YoY-16.6pp

5Y CAGR+23.0pp

10Y CAGR+35.7pp

Automatic Data Processing Inc's ROE was 65.9% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 16.6 percentage points from the prior year.

R&D Spending

$988.6M

YoY+3.4%

Automatic Data Processing Inc invested $988.6M in research and development in fiscal year 2025. This represents an increase of 3.4% from the prior year.

Share Buybacks

$1.3B

YoY+4.0%

5Y CAGR+4.9%

10Y CAGR-1.9%

Automatic Data Processing Inc spent $1.3B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 4.0% from the prior year.

Capital Expenditures

N/A

ADP Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$20.6B+7.1%	$19.2B+6.6%	$18.0B+9.2%	$16.5B+9.9%	$15.0B+2.8%	$14.6B
Cost of Revenue	$11.1B+5.9%	$10.5B+5.3%	$10.0B+5.2%	$9.5B+9.5%	$8.6B+2.3%	$8.4B
Gross Profit	$9.5B+8.5%	$8.7B+8.3%	$8.1B+14.5%	$7.0B+10.5%	$6.4B+3.6%	$6.1B
R&D Expenses	$988.6M+3.4%	$955.7M+13.1%	$844.8M+5.8%	$798.6M	N/A	N/A
SG&A Expenses	$4.1B+7.2%	$3.8B+6.4%	$3.6B+9.8%	$3.2B+6.3%	$3.0B+1.2%	$3.0B
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	$455.9M+26.1%	$361.4M+42.7%	$253.3M+209.3%	$81.9M+37.2%	$59.7M-44.3%	$107.1M
Income Tax	$1.2B+9.8%	$1.1B+9.2%	$1.0B+19.9%	$855.2M+12.1%	$762.7M+6.5%	$716.1M
Net Income	$4.1B+8.7%	$3.8B+10.0%	$3.4B+15.7%	$2.9B+13.5%	$2.6B+5.4%	$2.5B
EPS (Diluted)	$9.98+9.7%	$9.10+10.8%	$8.21+17.3%	$7.00+15.3%	$6.07+6.5%	$5.70

Metric	Q2'25	Q1'25	Q3'25	Q2'24	Q1'24	Q3'24	Q2'23	Q1'23
Revenue	$5.4B+3.6%	$5.2B-6.8%	$5.6B+10.0%	$5.0B+4.5%	$4.8B-8.0%	$5.3B+12.5%	$4.7B+3.4%	$4.5B
Cost of Revenue	$2.9B+1.9%	$2.8B-2.3%	$2.9B+5.9%	$2.7B+4.1%	$2.6B-4.9%	$2.8B+8.1%	$2.6B+1.8%	$2.5B
Gross Profit	$2.5B+5.6%	$2.3B-11.7%	$2.6B+14.9%	$2.3B+4.9%	$2.2B-11.5%	$2.5B+18.0%	$2.1B+5.5%	$2.0B
R&D Expenses	$257.8M+2.6%	$251.2M+1.7%	$247.1M+3.2%	$239.5M+3.0%	$232.6M-4.2%	$242.7M+6.1%	$228.7M-3.3%	$236.5M
SG&A Expenses	$1.1B+6.1%	$1.0B-0.9%	$1.0B+1.0%	$1.0B+8.6%	$926.7M-1.5%	$940.9M+2.0%	$922.5M+4.8%	$880.3M
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	$124.1M-8.3%	$135.4M+81.0%	$74.8M-42.3%	$129.6M-6.0%	$137.8M+119.8%	$62.7M-40.2%	$104.9M+14.5%	$91.6M
Income Tax	$321.2M+9.1%	$294.5M-20.9%	$372.4M+24.9%	$298.1M+6.5%	$279.9M-22.6%	$361.4M+36.2%	$265.4M+13.7%	$233.4M
Net Income	$1.1B+4.8%	$1.0B-18.9%	$1.2B+29.7%	$963.2M+0.7%	$956.3M-19.3%	$1.2B+34.9%	$878.4M+2.2%	$859.4M
EPS (Diluted)	$2.62+5.2%	$2.49-18.6%	$3.06+30.2%	$2.35+0.4%	$2.34-18.8%	$2.88+35.2%	$2.13+2.4%	$2.08

ADP Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$53.4B-1.8%	$54.4B+6.7%	$51.0B-19.2%	$63.1B+29.3%	$48.8B+24.5%	$39.2B
Current Assets	$43.3B-5.0%	$45.5B+8.0%	$42.2B-23.1%	$54.8B+34.5%	$40.7B+29.1%	$31.6B
Cash & Equivalents	$3.3B+14.9%	$2.9B+39.8%	$2.1B+45.1%	$1.4B-44.2%	$2.6B+34.9%	$1.9B
Inventory	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	$3.6B+4.4%	$3.4B+13.9%	$3.0B-5.1%	$3.2B+16.2%	$2.7B+11.7%	$2.4B
Goodwill	$3.3B+39.1%	$2.4B+0.6%	$2.3B+1.7%	$2.3B-1.6%	$2.3B+1.3%	$2.3B
Total Liabilities	$47.2B-5.3%	$49.8B+5.0%	$47.5B-20.7%	$59.8B+38.8%	$43.1B+29.0%	$33.4B
Current Liabilities	$41.3B-8.4%	$45.1B+5.4%	$42.8B-22.5%	$55.2B+44.8%	$38.1B+26.4%	$30.1B
Long-Term Debt	$4.0B+32.9%	$3.0B+0.1%	$3.0B+0.1%	$3.0B+0.1%	$3.0B+197.7%	$1.0B
Total Equity	$6.2B+36.1%	$4.5B+29.6%	$3.5B+8.8%	$3.2B-43.1%	$5.7B-1.4%	$5.8B
Retained Earnings	$25.2B+6.9%	$23.6B+6.8%	$22.1B+6.9%	$20.7B+6.4%	$19.5B+5.5%	$18.4B

Metric	Q2'25	Q1'25	Q3'25	Q2'24	Q1'24	Q3'24	Q2'23	Q1'23
Total Assets	$84.6B+55.8%	$54.3B-3.8%	$56.4B-11.9%	$64.1B+29.5%	$49.5B-22.9%	$64.2B+12.5%	$57.1B+15.7%	$49.3B
Current Assets	$74.5B+68.5%	$44.2B-5.0%	$46.5B-14.2%	$54.3B+35.9%	$39.9B-28.3%	$55.6B+14.6%	$48.5B+19.9%	$40.5B
Cash & Equivalents	$2.4B-2.2%	$2.5B-7.6%	$2.7B+20.9%	$2.2B+5.3%	$2.1B-36.1%	$3.3B+100.6%	$1.6B+13.9%	$1.4B
Inventory	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	$3.4B-1.6%	$3.5B-2.4%	$3.5B+1.3%	$3.5B+5.6%	$3.3B-4.2%	$3.5B+2.6%	$3.4B+9.0%	$3.1B
Goodwill	$3.3B+0.6%	$3.3B-0.8%	$3.3B+3.7%	$3.2B+34.4%	$2.4B+0.6%	$2.4B-0.6%	$2.4B+0.7%	$2.4B
Total Liabilities	$78.2B+63.2%	$47.9B-5.2%	$50.6B-14.3%	$59.0B+33.6%	$44.2B-25.8%	$59.6B+12.9%	$52.7B+15.0%	$45.9B
Current Liabilities	$72.1B+72.0%	$41.9B-8.5%	$45.8B-15.6%	$54.3B+37.9%	$39.4B-28.3%	$54.9B+14.1%	$48.1B+16.7%	$41.2B
Long-Term Debt	$4.0B0.0%	$4.0B+33.3%	$3.0B0.0%	$3.0B0.0%	$3.0B-0.3%	$3.0B0.0%	$3.0B0.0%	$3.0B
Total Equity	$6.4B+0.3%	$6.4B+8.9%	$5.9B+15.3%	$5.1B-5.1%	$5.3B+15.6%	$4.6B+7.1%	$4.3B+24.4%	$3.5B
Retained Earnings	$26.0B+1.4%	$25.6B+2.7%	$25.0B+2.6%	$24.3B+1.4%	$24.0B+2.7%	$23.4B+2.7%	$22.8B+1.3%	$22.5B

ADP Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	$4.9B+18.8%	$4.2B-1.2%	$4.2B+35.8%	$3.1B+0.2%	$3.1B+2.2%	$3.0B
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	-$3.0B-118.5%	-$1.4B+44.8%	-$2.5B+64.1%	-$7.0B-99.6%	-$3.5B-211.4%	$3.2B
Financing Cash Flow	-$7.0B-387.1%	-$1.4B+90.9%	-$15.7B-214.8%	$13.7B+112.1%	$6.4B+209.3%	-$5.9B
Dividends Paid	$2.4B+9.9%	$2.2B+14.7%	$1.9B+14.7%	$1.7B+5.3%	$1.6B+7.1%	$1.5B
Share Buybacks	$1.3B+4.0%	$1.2B+9.8%	$1.1B-43.1%	$2.0B+43.5%	$1.4B+36.4%	$1.0B

Metric	Q2'25	Q1'25	Q3'25	Q2'24	Q1'24	Q3'24	Q2'23	Q1'23
Operating Cash Flow	$1.1B+76.4%	$642.3M-57.9%	$1.5B+32.6%	$1.2B+39.5%	$824.4M-45.0%	$1.5B+45.1%	$1.0B+216.2%	$326.5M
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	-$676.9M+63.7%	-$1.9B-235.1%	-$555.9M+55.8%	-$1.3B+23.5%	-$1.6B-50.3%	-$1.1B-891.0%	$138.3M+164.0%	-$216.1M
Financing Cash Flow	$29.2B+17680.9%	$164.1M+101.7%	-$9.4B-167.3%	$14.0B+315.3%	-$6.5B-210.6%	$5.9B+2.6%	$5.7B+400.5%	-$1.9B
Dividends Paid	$629.3M+0.4%	$626.7M-0.2%	$628.0M+9.7%	$572.5M0.0%	$572.6M-0.6%	$575.9M+11.5%	$516.3M+0.1%	$515.8M
Share Buybacks	$515.8M+40.9%	$366.0M+17.5%	$311.6M+14.4%	$272.3M-26.9%	$372.6M+27.8%	$291.5M+14.4%	$254.7M+1.9%	$250.0M

ADP Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	46.0%+0.6pp	45.4%+0.7pp	44.7%+2.1pp	42.6%+0.2pp	42.4%+0.3pp	42.1%
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	19.8%+0.3pp	19.5%+0.6pp	18.9%+1.1pp	17.9%+0.6pp	17.3%+0.4pp	16.9%
Return on Equity	65.9%-16.6pp	82.5%-14.7pp	97.2%+5.8pp	91.4%+45.6pp	45.8%+2.9pp	42.9%
Return on Assets	7.6%+0.7pp	6.9%+0.2pp	6.7%+2.0pp	4.7%-0.6pp	5.3%-1.0pp	6.3%
Current Ratio	1.05+0.0	1.01+0.0	0.990.0	0.99-0.1	1.07+0.0	1.05
Debt-to-Equity	0.64-0.0	0.66-0.2	0.85-0.1	0.93+0.4	0.53+0.4	0.17
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q2'25	Q1'25	Q3'25	Q2'24	Q1'24	Q3'24	Q2'23	Q1'23
Gross Margin	46.1%+0.9pp	45.2%-2.5pp	47.7%+2.0pp	45.7%+0.2pp	45.5%-1.8pp	47.3%+2.2pp	45.1%+0.9pp	44.3%
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	19.8%+0.2pp	19.6%-2.9pp	22.5%+3.4pp	19.1%-0.7pp	19.8%-2.8pp	22.6%+3.7pp	18.8%-0.2pp	19.1%
Return on Equity	16.6%+0.7pp	15.9%-5.4pp	21.3%+2.4pp	19.0%+1.1pp	17.9%-7.7pp	25.6%+5.3pp	20.3%-4.4pp	24.8%
Return on Assets	1.3%-0.6pp	1.9%-0.4pp	2.2%+0.7pp	1.5%-0.4pp	1.9%+0.1pp	1.8%+0.3pp	1.5%-0.2pp	1.7%
Current Ratio	1.03-0.0	1.05+0.0	1.02+0.0	1.00-0.0	1.010.0	1.010.0	1.01+0.0	0.98
Debt-to-Equity	0.620.0	0.62+0.1	0.51-0.1	0.59+0.0	0.56-0.1	0.65-0.0	0.69-0.2	0.86
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

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Frequently Asked Questions

What is Automatic Data Processing Inc's annual revenue?

Automatic Data Processing Inc (ADP) reported $20.6B in total revenue for fiscal year 2025. This represents a 7.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Automatic Data Processing Inc's revenue growing?

Automatic Data Processing Inc (ADP) revenue grew by 7.1% year-over-year, from $19.2B to $20.6B in fiscal year 2025.

Is Automatic Data Processing Inc profitable?

Yes, Automatic Data Processing Inc (ADP) reported a net income of $4.1B in fiscal year 2025, with a net profit margin of 19.8%.

What is Automatic Data Processing Inc's earnings per share (EPS)?

Automatic Data Processing Inc (ADP) reported diluted earnings per share of $9.98 for fiscal year 2025. This represents a 9.7% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

How much debt does Automatic Data Processing Inc have?

As of fiscal year 2025, Automatic Data Processing Inc (ADP) had $3.3B in cash and equivalents against $4.0B in long-term debt.

What is Automatic Data Processing Inc's gross margin?

Automatic Data Processing Inc (ADP) had a gross margin of 46.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Automatic Data Processing Inc's net profit margin?

Automatic Data Processing Inc (ADP) had a net profit margin of 19.8% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Does Automatic Data Processing Inc pay dividends?

Yes, Automatic Data Processing Inc (ADP) paid $6.02 per share in dividends during fiscal year 2025.

What is Automatic Data Processing Inc's return on equity (ROE)?

Automatic Data Processing Inc (ADP) has a return on equity of 65.9% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Automatic Data Processing Inc's operating cash flow?

Automatic Data Processing Inc (ADP) generated $4.9B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Automatic Data Processing Inc's total assets?

Automatic Data Processing Inc (ADP) had $53.4B in total assets as of fiscal year 2025, including both current and long-term assets.

How much does Automatic Data Processing Inc spend on research and development?

Automatic Data Processing Inc (ADP) invested $988.6M in research and development during fiscal year 2025.

Does Automatic Data Processing Inc buy back shares?

Yes, Automatic Data Processing Inc (ADP) spent $1.3B on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

How many shares does Automatic Data Processing Inc have outstanding?

Automatic Data Processing Inc (ADP) had 405M shares outstanding as of fiscal year 2025.

What is Automatic Data Processing Inc's current ratio?

Automatic Data Processing Inc (ADP) had a current ratio of 1.05 as of fiscal year 2025, which is considered adequate.

What is Automatic Data Processing Inc's debt-to-equity ratio?

Automatic Data Processing Inc (ADP) had a debt-to-equity ratio of 0.64 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Automatic Data Processing Inc's return on assets (ROA)?

Automatic Data Processing Inc (ADP) had a return on assets of 7.6% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Automatic Data Processing Inc's Piotroski F-Score?

Automatic Data Processing Inc (ADP) has a Piotroski F-Score of 8 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Automatic Data Processing Inc's earnings high quality?

Automatic Data Processing Inc (ADP) has an earnings quality ratio of 1.21x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

How financially healthy is Automatic Data Processing Inc?

Automatic Data Processing Inc (ADP) scores 65 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.