How Automatic Data Processing (ADP) Makes Money: A Visual Guide
Automatic Data Processing (ADP) generated $21.60B in revenue, earning $4.35B in net profit (20.1% margin). Its largest revenue source is HCM (44.4% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.
In TTM through Q1 2026, Automatic Data Processing (ADP) generated revenue across 4 reportable product segments; the largest contributor was HCM at 44.4%, followed by Professional Employer Organization (22.3%) and HRO (19.3%). Geographically, UNITED STATES accounted for 88.4% of revenue, followed by Europe (7.5%) and CANADA (2.4%).
Automatic Data Processing (ADP) Income Statement Flow — TTM through Q1 2026
Calculated from the four most recent reported quarters, ending (reported ).
Automatic Data Processing (ADP) Revenue by Product Segment — TTM through Q1 2026
Revenue contribution by product segment for Automatic Data Processing (ADP) in TTM through Q1 2026.
HCM
- Revenue
- $9.59B
- % of total
- 44.4%
Professional Employer Organization
- Revenue
- $4.81B
- % of total
- 22.3%
HRO
- Revenue
- $4.17B
- % of total
- 19.3%
Global
- Revenue
- $3.02B
- % of total
- 14%
Total
- Revenue
- $21.60B
- % of total
- 100%
| Segment | Revenue | % of total |
|---|---|---|
| HCM | $9.59B | 44.4% |
| Professional Employer Organization | $4.81B | 22.3% |
| HRO | $4.17B | 19.3% |
| Global | $3.02B | 14% |
| Total | $21.60B | 100% |
Automatic Data Processing (ADP) Revenue by Geography — FY 2025 (period end June 30, 2025)
Quarterly geographic data is unavailable for this period, so the table reflects the company's last annual disclosure (FY 2025 (period end June 30, 2025)). The income statement above uses TTM through Q1 2026, so regional dollars and percentages will not match line-for-line.
Revenue contribution by geographic region for Automatic Data Processing (ADP), FY 2025 (period end June 30, 2025).
UNITED STATES
- Revenue
- $18.18B
- % of total
- 88.4%
Europe
- Revenue
- $1.53B
- % of total
- 7.5%
CANADA
- Revenue
- $489.30M
- % of total
- 2.4%
Other Segments
- Revenue
- $358.90M
- % of total
- 1.7%
Total
- Revenue
- $20.56B
- % of total
- 100%
| Region | Revenue | % of total |
|---|---|---|
| UNITED STATES | $18.18B | 88.4% |
| Europe | $1.53B | 7.5% |
| CANADA | $489.30M | 2.4% |
| Other Segments | $358.90M | 1.7% |
| Total | $20.56B | 100% |
Frequently asked questions
How does Automatic Data Processing (ADP) make money?
Automatic Data Processing (ADP) primarily makes money through HCM, which accounts for 44.4% of total revenue. For TTM through Q1 2026, Automatic Data Processing generated $21.60B in total revenue with a net profit margin of 20.1%.
What is Automatic Data Processing (ADP) gross profit margin?
Automatic Data Processing (ADP) reported a gross profit margin of 47.5% for TTM through Q1 2026, equivalent to $10.26B in gross profit. This means Automatic Data Processing retains 47.5% of each revenue unit after direct costs of production.
What is Automatic Data Processing (ADP) operating profit margin?
Automatic Data Processing (ADP) reported an operating profit margin of 19.2% for TTM through Q1 2026, equivalent to $4.15B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Automatic Data Processing (ADP) net profit margin?
Automatic Data Processing (ADP) reported a net profit margin of 20.1% for TTM through Q1 2026, equivalent to $4.35B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Automatic Data Processing (ADP) invest in R&D?
Automatic Data Processing (ADP) invested $778.30M in research and development in TTM through Q1 2026 (3.6% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Automatic Data Processing (ADP) spend on capital expenditures?
Automatic Data Processing (ADP) spent $301.20M on capital expenditures in TTM through Q1 2026 (1.4% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Automatic Data Processing (ADP) free cash flow?
Automatic Data Processing (ADP) generated $5.15B in free cash flow for TTM through Q1 2026 (23.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Automatic Data Processing (ADP) effective tax rate?
Automatic Data Processing (ADP) had an effective tax rate of 23.3% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.
What are Automatic Data Processing (ADP) main revenue segments?
Automatic Data Processing (ADP) reports revenue across 4 reportable product segments, led by HCM at 44.4% of total revenue in TTM through Q1 2026. The full segment-by-segment breakdown is shown in the revenue-by-segment table on this page.
Where does Automatic Data Processing (ADP) generate most of its revenue?
Geographically, 88.4% of Automatic Data Processing (ADP) revenue came from UNITED STATES in the most recent annual filing. The full regional split is shown in the revenue-by-geography table on this page.
Data & methodology
What is a Sankey diagram?
A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?
We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
Where do segment and geographic numbers come from?
Product-segment shares come from the same TTM income statement that powers the Sankey chart. Geographic splits are first rebuilt from the four most recent quarterly geographic-segmentation filings so they align with the same TTM window; if quarterly geo data is missing, we fall back to the latest annual disclosure (the table heading shows which one is in use).
When was this data last updated?
Based on company filings through TTM through Q1 2026.
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