Company Description
Automatic Data Processing, Inc. (ADP) (Nasdaq: ADP) is a global technology company focused on human capital management (HCM) and related HR and payroll solutions. ADP positions itself as a long‑tenured participant in the world of work, stating that it has been shaping work with innovation and expertise for more than 75 years. The company’s stock is listed on the NASDAQ Global Select Market under the symbol ADP, and its business sits within the broader area of data processing, hosting, and related services in the information sector.
According to ADP’s own descriptions, the company serves more than 1.1 million clients across over 140 countries. Its offerings span HR, talent, time management, benefits, compliance, and payroll, with tools that range from simple, easy‑to‑use solutions for small businesses to fully integrated platforms for global enterprises. ADP emphasizes the use of AI‑driven insights and its accumulated expertise to design solutions that help people achieve greater success at work and help organizations address a variety of business challenges related to their workforce.
Business model and core solutions
ADP describes itself as a global leader in HR and payroll solutions. It generates value by providing cloud‑based human capital management capabilities and related services that help clients manage payroll, HR administration, talent, time, tax, benefits, and compliance processes. The company highlights that its platforms are designed for organizations of different sizes, from small and mid‑sized businesses to large, global employers.
ADP’s solutions are often framed around the idea of designing better ways to work. The company points to HR, Talent, Time Management, Benefits, Compliance, and Payroll as key focus areas. Within these, ADP offers tools that support activities such as workforce administration, time and attendance tracking, benefits administration, and payroll processing. The firm also provides human resource outsourcing (HRO) solutions, allowing clients to offload some traditional HR tasks.
Based on the Polygon description, ADP operates through at least two major segments: Employer Services and Professional Employer Organization (PEO) Services. Employer Services includes the company’s HCM products and a la carte HRO solutions. PEO Services contains a more comprehensive HRO solution, where ADP acts as a co‑employer with its customers. In this co‑employment model, ADP shares certain employer responsibilities while clients retain day‑to‑day control over their workforce.
Technology, data, and research
ADP emphasizes the role of data and AI‑driven insights in its offerings. The company states that it uses unmatched AI‑driven insights and proven expertise to design solutions that support people and organizations. ADP also operates ADP Research, whose mission is described as making the future of work more productive through data‑driven discovery. Companies, workers, and policymakers rely on this research function’s finely tuned data and perspective to make decisions that affect workplaces.
One visible output of this data capability is the ADP National Employment Report and related products such as the NER Pulse and Pay Insights. These reports are produced by ADP Research in collaboration with the Stanford Digital Economy Lab and use anonymized payroll and pay data to provide high‑frequency views of private‑sector employment and pay trends in the United States. The National Employment Report and NER Pulse illustrate how ADP’s core payroll and HR data can be used beyond operational processing, providing macro‑level labor market indicators.
Client base and scale
ADP reports that more than 1.1 million clients across 140+ countries rely on its services. This client base spans small businesses, mid‑sized organizations, and large global enterprises. The Polygon description notes that ADP pays over 42 million workers across 140 countries, underscoring the breadth of its payroll and HCM footprint. The company’s communications repeatedly highlight that its tools address needs "from simple, easy‑to‑use tools for small businesses to fully integrated platforms for global enterprises," indicating a broad range of deployment scales and complexity levels.
Products, platforms, and partnerships
ADP’s portfolio includes named platforms and experiences referenced in its news releases. For small businesses, ADP offers RUN Powered by ADP (RUN), a payroll platform that also serves as a hub for integrated benefits experiences. For example, ADP announced an integration with Thatch, an Individual Coverage Health Reimbursement Arrangement (ICHRA) platform, embedded directly within RUN. This integration allows small and mid‑sized businesses to access ICHRA health benefits from within their payroll workflow, with automated payroll deductions and carrier payments and tools that help employers remain compliant.
ADP also runs client‑facing programs such as the HCM Distinction Awards, which recognize large employers that demonstrate excellence in HCM and workplace innovation. Finalists are recognized in categories such as agility, culture, global solutions, innovation, and talent, and winners are announced at ADP’s long‑running Meeting of the Minds conference. This program illustrates how ADP engages with large clients and showcases examples of how organizations use HCM technology to transform work.
Corporate governance and capital structure context
ADP is incorporated in Delaware and files regular reports with the U.S. Securities and Exchange Commission. Its common stock, $0.10 par value (voting), is registered and traded on the NASDAQ Global Select Market under the symbol ADP, as disclosed in multiple Form 8‑K filings. The company holds an Annual Meeting of Stockholders where shareholders vote on the election of directors, advisory resolutions on executive compensation, and ratification of the independent registered public accounting firm. The 2025 proxy statement describes a board of directors with a majority of independent members and several standing committees, including an Audit Committee, a Nominating/Corporate Governance Committee, a Compensation and Management Development Committee, and a Corporate Development and Technology Committee.
ADP also maintains access to bank credit facilities, as described in a Form 8‑K detailing a 364‑Day Credit Agreement and a Five‑Year Credit Agreement with a group of lenders. These facilities provide revolving credit options for general corporate purposes and include customary covenants and events of default. Such arrangements are typical of large public companies and provide additional liquidity and financial flexibility.
Dividends, capital allocation, and investor communications
ADP’s news releases indicate an ongoing pattern of capital returns and investor engagement. The company has announced regular quarterly dividends on its common stock and has disclosed board authorizations to repurchase significant amounts of its common shares. These actions are communicated through press releases that also reiterate ADP’s long history in the HR and payroll space and its positioning as a global leader in HCM solutions.
Investor‑oriented events and disclosures include scheduled earnings releases, conference calls, and presentations at investor conferences. For example, ADP has announced plans to present at sector‑focused conferences and to host webcasts discussing quarterly financial results. These events are typically accompanied by slide presentations and are made available to investors through ADP’s investor relations channels.
Role in the broader employment and HR ecosystem
ADP’s combination of HCM technology, payroll processing, HR outsourcing, and labor market research places it at the intersection of HR operations and workforce analytics. Its services support day‑to‑day HR and payroll tasks for organizations in many industries and geographies, while its research outputs, such as the ADP National Employment Report and NER Pulse, provide insight into employment and pay trends at a macro level.
The company’s branding phrase, "Always Designing for People", appears throughout its communications and reflects its stated focus on people‑centric design. ADP positions its technology and services as tools that help organizations support their workers, build engaged cultures, and adapt to changes in the world of work.
FAQs about Automatic Data Processing (ADP)
- What does ADP do?
Automatic Data Processing, Inc. provides human capital management and HR solutions, including HR, talent, time management, benefits, compliance, and payroll services. It offers tools for small businesses, mid‑sized organizations, and global enterprises.
- How does ADP describe its business model?
ADP describes itself as a global leader in HR and payroll solutions that uses AI‑driven insights and expertise to design tools and services that help clients address business challenges related to their people and workforce management.
- What are ADP’s main business segments?
According to the Polygon description, ADP operates through two primary segments: Employer Services, which includes HCM products and a la carte human resource outsourcing solutions, and Professional Employer Organization (PEO) Services, which offers a comprehensive HRO solution where ADP acts as a co‑employer with customers.
- How large is ADP’s client base?
ADP states that more than 1.1 million clients across over 140 countries rely on its services. The Polygon description also notes that ADP pays over 42 million workers across 140 countries.
- What types of organizations use ADP?
ADP reports that its solutions support a wide range of organizations, from small businesses that use simple, easy‑to‑use tools to global enterprises that use fully integrated HCM platforms.
- What is RUN Powered by ADP?
RUN Powered by ADP is a payroll platform referenced in ADP’s news releases, particularly for small and mid‑sized businesses. It can serve as a hub for embedded experiences, such as the integration with Thatch to provide access to ICHRA health benefits directly within the payroll workflow.
- What is ADP Research and the ADP National Employment Report?
ADP Research is a function within ADP that uses the company’s data to study the world of work. It produces the ADP National Employment Report, NER Pulse, and Pay Insights, which use anonymized payroll and pay data to provide high‑frequency views of private‑sector employment and pay trends, in collaboration with the Stanford Digital Economy Lab.
- How is ADP’s stock traded?
ADP’s common stock, with a $0.10 par value and voting rights, is registered under Section 12(b) of the Securities Exchange Act of 1934 and trades on the NASDAQ Global Select Market under the ticker symbol ADP, as disclosed in the company’s Form 8‑K filings.
- Does ADP pay dividends or repurchase shares?
ADP has issued press releases announcing regular quarterly dividends on its common stock and board authorizations to purchase billions of dollars of its common shares, indicating that dividends and share repurchases are part of its capital allocation approach.
- Is ADP still an active public company?
Recent SEC filings, dividend announcements, share repurchase authorizations, and scheduled earnings releases all indicate that ADP continues to operate as an active public company with its shares traded on the NASDAQ Global Select Market.