Automatic Data Processing, Inc. (ADP) Stock

Automatic Data Processing, Inc. (ADP) is a Technology stock trading at $247.46 (as of 2026-07-15), with a market capitalization of $98.92B and a trailing P/E of 22.8. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. Its offerings include payroll, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solutions to small and mid-sized businesses through a co-employment model. This segment offers benefits package, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. The company was founded in 1949 and is headquartered in Roseland, New Jersey.

Understand Automatic Data Processing, Inc.: how it makes money

ADP provides cloud-based human capital management (HCM) solutions, including payroll and HR services, and also offers HR outsourcing via its PEO. It makes money by charging employers for these platforms and outsourced HR/payroll services, with scale tied to its client and worksite employee base.

ADP's profit engine is recurring, per-employer and per-worksite HCM services, where growth and stability are driven by the number of Run clients and PEO worksite employees, and operating momentum is supported by operational efficiency initiatives shown in metrics like Run Platform Reduction in Client Contacts and the Lyric Leaner Payroll Operations Model.

Business quality (Exceptional): Clear business model (HCM platforms plus PEO outsourcing) with operational KPIs that track customer scale and process efficiency, but some performance metrics can be affected by items like client funds interest yield decline.

Valuation: Trades at 21× trailing earnings · $89B market cap.

Bull case

Platform and client scale are tracked directly: Run Clients are measured at 750,000, and PEO scale is measured by Average Worksite Employees (Professional Employer Organization) at 761,000.
Operational efficiency improvements are explicitly monitored: Metrics such as Run Platform Reduction in Client Contacts (8 percent) and Lyric Leaner Payroll Operations Model (71 percent) indicate a focus on reducing client and payroll process friction.
Product adoption is a stated operating focus: NextGen Adoption (Mid-Market Clients) is 80 percent, and Zone Platform Penetration (Service Population) is 20 percent.

Bear case

Client funds interest yield can decline: Client Funds Interest Average Yield Decline is indicated by the metric provided, which can pressure economics tied to client funds.
Adoption metrics may not hold up: If NextGen Adoption (Mid-Market Clients) or Zone Platform Penetration (Service Population) slow from current levels (80 percent and 20 percent in the provided metrics), it could impact the mix and momentum of platform-driven growth.
Process changes can increase execution risk: Efficiency initiatives such as Run Platform Reduction in Client Contacts (8 percent) and Lyric Leaner Payroll Operations Model (71 percent) require effective delivery, and any shortfall could affect client experience or operations.

Valuation — source: SEC EDGAR (first-party)
Price	$247.46
Market Cap	$98.92B
P/E Ratio	22.8
EV / EBITDA	15.5
Price / Book	15.58
Price / Sales	4.58
DCF Value (model)	$149.98
DCF Upside vs Price	-39.4%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$20.56B
Net Margin	19.8%
Revenue Growth (YoY)	7.0%
EPS Growth (YoY)	10.4%

Financial Health — source: SEC EDGAR
Altman Z-Score	2.69 (grey)
Piotroski F-Score	8/9 (strong)

Valuation vs Sector & Industry
Stock P/E	22.8
Sector P/E (Technology)	34.5
Industry P/E (Business Services)	30.8
vs Sector	-34.0%
vs Industry	-26.2%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($10.70B)
Institutional Holders Tracked	10
Congressional Trades (recent)	10

Company
Sector	Technology
Industry	Business Services
CEO	Maria Black
Employees	64,000
Country	US
IPO Date	1980-03-17

Related Companies (Business model: SaaS / Subscription Software (Enterprise); 8 closest by market cap; US-domiciled)

Data as of 2026-07-15.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.