Automatic Data Processing(NASDAQ) ADP

ADP helps businesses pay employees and manage human resources tasks. Its payroll and HR services support companies of all sizes. For example, a small business uses ADP to handle paychecks and benefits for its staff.

Payroll, People, and More: ADP’s Main Offerings

• Employer Services (67.5% of revenue for the nine months ended March 31, 2025): Cloud-based payroll, benefits, and HR management for businesses of all sizes.
• PEO Services (32.6% of revenue for the nine months ended March 31, 2025): HR outsourcing for small and mid-sized businesses using a co-employment model.
• Workforce Management: Tools for tracking employee hours, scheduling, and compliance, especially for large organizations.
• Compliance and Risk: Services to help clients follow employment laws and manage workplace risks.
• Retirement and Insurance: Administration of retirement plans and employee insurance benefits.

Growth Moves: ADP’s Expansion Playbook

• Acquired WorkForce Software in October 2024 to boost workforce management for large clients.
• Bought PEI in Mexico in January 2025, expanding payroll services in Latin America.
• Invested in new technologies, including generative artificial intelligence, to enhance product offerings in 2024 and 2025.
• Continued global expansion by integrating acquired businesses and growing international payroll capabilities.

What Makes ADP Stand Out in the Crowd

The company invests heavily in technology and product development to stay competitive.

Five Things You Need to Know

• Revenue was $5.36 billion in Q2 2026, up 6.2% from Q2 2025.
• Net earnings reached $1.25 billion in Q1 2025, up 5% year-over-year.
• Cash and cash equivalents were $2.68 billion as of March 31, 2025.
• ADP paid $1.77 billion in dividends over the nine months ending March 2025.

Bottom Line

ADP has evolved through acquisitions, technology upgrades, and global expansion. Its broad service range and recurring revenue model support long-term business stability.