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ADP · Nasdaq · United States · Services-Computer Processing & Data Preparation
In shortAUTOMATIC DATA PROCESSING INC is profitable, generates cash and carries moderate debt, with revenue growing (+6.7% last year).
Financial health
Strong
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | – | n/a |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 20.1% | 100/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 72.2% | 100/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | – | n/a |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 1.05× | 21/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | 0.82× | 65/100 |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | – | n/a |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | – | n/a |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | – | n/a |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 24.8% | 100/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 1.23× | 100/100 |
| Years with positive free cash flow (last 5) | 5 of 5 | 100/100 |
Weight in the score: 20%
| Profitable years (last 5) | 5 of 5 | 100/100 |
|---|---|---|
| Years of revenue decline (last 5) | 0 of 5 | 100/100 |
| Revenue growth volatility | 1.5% | 100/100 |
| Operating margin volatility | – | n/a |
Weight in the score: 20%
| Revenue growth, 3-year average | 6.8% | 54/100 |
|---|---|---|
| EPS growth, 3-year average | 10.0% | 75/100 |
Weight in the score: 10%
Fiscal year 2026 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
USD millions; negative values in parentheses.
| Fiscal year | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 16,498 | 18,012 | 19,203 | 20,561 | 21,947 |
| Cost of revenue | 9,462 | 9,953 | 10,477 | 11,097 | 11,760 |
| Gross profit | 7,036 | 8,059 | 8,726 | 9,464 | 10,187 |
| Research & development | 799 | 845 | 956 | 989 | 1,029 |
| Selling, general & admin | 3,233 | 3,551 | 3,779 | 4,052 | 4,408 |
| Interest expense | 82 | 253 | 361 | 456 | 459 |
| Pre-tax income | 3,804 | 4,438 | 4,872 | 5,310 | 5,730 |
| Income tax | 855 | 1,026 | 1,120 | 1,230 | 1,317 |
| Net income | 2,949 | 3,412 | 3,752 | 4,080 | 4,414 |
| Diluted EPS | $7.00 | $8.21 | $9.10 | $9.98 | $10.94 |
| Diluted shares (millions) | 421 | 416 | 412 | 409 | 403 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 8 reported quarters (10-Q and 10-K filings), in USD millions. The fourth quarter is derived from the annual report.
The last 8 quarters of AUTOMATIC DATA PROCESSING INC are included in the Investor plan. Try free for 7 days →
Not computed: a required balance-sheet item is missing.
6/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Jun 30, 2026 · Data updated Aug 5, 2026