How does Automatic Data Processing (ADP) make money?

Automatic Data Processing (ADP) primarily makes money through HCM, which accounts for 43.9% of total revenue. For TTM through Q4 2025, Automatic Data Processing generated $21.21B in total revenue with a net profit margin of 20%.

What is Automatic Data Processing (ADP) gross profit margin?

Automatic Data Processing (ADP) reported a gross profit margin of 48.4% for TTM through Q4 2025, equivalent to $10.26B in gross profit. This means Automatic Data Processing retains 48.4% 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 18.8% for TTM through Q4 2025, equivalent to $3.99B 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% for TTM through Q4 2025, equivalent to $4.24B 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 $1.03B in research and development in TTM through Q4 2025 (4.8% 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 $143.70M on capital expenditures in TTM through Q4 2025 (0.7% 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 $4.60B in free cash flow for TTM through Q4 2025 (21.7% 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% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.

How Automatic Data Processing (ADP) Makes Money: A Visual Guide

Automatic Data Processing (ADP) generated $21.21B in revenue, earning $4.24B in net profit (20% margin). Its largest revenue source is HCM (43.9% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Automatic Data Processing (ADP) Income Statement Flow — TTM through Q4 2025

Calculated from the four most recent reported quarters, ending December 31, 2025 (reported January 29, 2026).

Frequently asked questions

How does Automatic Data Processing (ADP) make money?: Automatic Data Processing (ADP) primarily makes money through HCM, which accounts for 43.9% of total revenue. For TTM through Q4 2025, Automatic Data Processing generated $21.21B in total revenue with a net profit margin of 20%.
What is Automatic Data Processing (ADP) gross profit margin?: Automatic Data Processing (ADP) reported a gross profit margin of 48.4% for TTM through Q4 2025, equivalent to $10.26B in gross profit. This means Automatic Data Processing retains 48.4% 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 18.8% for TTM through Q4 2025, equivalent to $3.99B 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% for TTM through Q4 2025, equivalent to $4.24B 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 $1.03B in research and development in TTM through Q4 2025 (4.8% 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 $143.70M on capital expenditures in TTM through Q4 2025 (0.7% 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 $4.60B in free cash flow for TTM through Q4 2025 (21.7% 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% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.

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.
When was this data last updated?: Based on company filings through TTM through Q4 2025.