Company Analysis

Automatic Data Processing, Inc. (ADP)

Nasdaq: ADP · Services-Computer Processing & Data Preparation · Roseland, NJ · filing with the SEC since 1994
Grade6.3
◀ Past 7.3● Present 6.6▶ Future 5.0

The grade of Automatic Data Processing, Inc.

Nine metrics read from its own filings, by tense
Headline grade
6.3/10
◀ Past7.330% of the headline
● Present6.640% of the headline
▶ Future5.030% of the headline

All three tenses have at least two readings, so the archetype blend applies as printed.

All nine metrics read as filed from the record.

◀ Past

What did they actually do?

7.3/1030% of the headline grade · 3 of 3 filed

Surviving crises

as filed
7.5/10

Has it survived what it has been through?

No warning events in its filings since 2017.

weight 33% of this tense · 75th percentile among 77 sector filers · read for itself

From the record

Automatic Data Processing, Inc.'s filings since 2017 show no warning events in the scan: no bankruptcy or receivership notice, no debt default notice, no exchange listing notice, no restatement warning, no auditor change, no material cyber incident and no late-report notice (its current reports).

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

Track record

as filed
6.9/10

What has it actually done, year after year?

+6.6% a year over 10 filed years; profitable in 10 of 10.

weight 45% of this tense · 69th percentile among 64 sector filers · read for its customers

From the record

Automatic Data Processing, Inc.'s 10 filed years say what it did: revenue went from $12 billion in fiscal 2017 to $22 billion in fiscal 2026, up 6.6% a year; it rose in 9 of 9 years; it never fell from a peak; net income was positive in 10 of 10 of those years (its annual reports).

What it rests on

  • revenue growth over the filed span6.6%bottom 28% of its family
  • the share of years revenue rosetop 21% of its family
  • the share of filed years with a profittop 11% of its family
  • the deepest fall from a revenue peak0.0%top 21% of its family

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

Shareholder treatment

as filed
7.7/10

How has it treated the people who own it?

Share count shrank 1.0% a year. 81% of cash flow returned. Insiders: 69 sales, 1 purchases.

weight 22% of this tense · 77th percentile among 43 sector filers · read for its shareholders

From the record

Over the 3 fiscal years to 2026-06-30, Automatic Data Processing, Inc.'s diluted share count shrank about 1.0% a year, and dividends and buybacks returned about 81% of its operating cash flow over 3 years (its filed statements). Its officers and directors filed 69 sales (69 under scheduled 10b5-1 plans) and 1 purchase of their own stock on the open market in the year to 2026-11-12, buying about $746 thousand (their Form 4 filings).

What it rests on

  • the share count over the yearstop 30% of its family
  • cash returned against operating cash flowtop 16% of its family

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

● Present

What are they doing right now?

6.6/1040% of the headline grade · 3 of 3 filed

Financial health

as filed
5.3/10

Is it financially healthy right now?

ROE 73%: 73¢ of profit per shareholder dollar. Leverage 90%: owes 90¢ per asset dollar.

weight 33% of this tense · 53rd percentile among 69 sector filers · read for itself

From the record

Return on equity: in the fiscal year ended 2026-06-30, Automatic Data Processing, Inc. earned about 73 cents of profit for every dollar of shareholders' money, and gross profitability: its products earned about 16 cents per dollar of everything the company owns (revenue less the cost of revenue). Leverage: it owed about 90 cents per dollar of assets, and net share issuance: its share count shrank 1.3% over the year (the filed statements).

What it rests on

  • what it owes per dollar of assetsbottom 15% of its family
  • return on equitytop 4% of its family
  • gross profit against assetsbottom 29% of its family
  • the share count against the year beforetop 27% of its family

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

Industry position

as filed
7.5/10

How strong is its position in its industry?

top 25% of 68 in its family; net margin 20.1%.

weight 45% of this tense · 75th percentile among 68 sector filers · read for its customers

From the record

Automatic Data Processing, Inc.'s standing among 68 graded names in its industry family: revenue of $22 billion in fiscal 2026 ranks in the top 1% by size; a net margin of 20.1% ranks in the top 20%; revenue growth of 6.8% a year over the last 3 filed years ranks in the bottom 46% (its annual reports).

What it rests on

  • revenue against the family$21.95Btop 1% of its family
  • net margin20.1%top 20% of its family
  • three-year revenue growth6.8%bottom 46% of its family

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

Leadership

as filed
6.5/10

What are the people in charge doing?

top 35% of 38 in its family for leadership; chief executive since 2023.

weight 22% of this tense · 65th percentile among 38 sector filers · read for its shareholders

From the record

Automatic Data Processing, Inc.'s leadership, from its insiders' filings and its current reports: the chief executive on the record is Black, Maria (President & CEO, as filed), filing under that title since 2023-01-03, 3.9 years (bottom 46% of its family); the 28 officers and directors filing in the last fifteen months have been on the record a median of 5.7 years (top 36%); 4 officer or director changes were reported on Form 8-K since 2023-11-13, against the 28 people in charge now (top 15%; fewer changes for each person reads higher) (the Form 4 record, its Form 8-K reports). Years count from a person's first filing in the SEC's data sets, which begin in 2006, so each is a floor.

What it rests on

  • officer and director changes on Form 8-K, against the people in charge4 in three years among 28 peopletop 15% of its family
  • the median years the people in charge have filed5.7 yearstop 36% of its family
  • the chief executive's years on the record3.9 yearsbottom 46% of its family

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

▶ Future

What are they set up to do next?

5.0/1030% of the headline grade · 3 of 3 filed

Room to expand

as filed
3.9/10

How much room does it have to grow?

bottom 39% of 68 in its family for room to expand.

weight 22% of this tense · 39th percentile among 68 sector filers · read for itself

From the record

Automatic Data Processing, Inc.'s room to grow, from the newest filed statements (fiscal 2026): cash of $4.2 billion against debt of $5.0 billion leaves -1.2% of its assets as net cash, bottom 24% of its family; cash from operations less capital spending is 24.8% of revenue (top 14%); a gross margin of 46.4% (bottom 31%); research spending of 4.7% of revenue (bottom 17%) (its annual report).

What it rests on

  • cash less debt against assets-1.2%bottom 24% of its family
  • cash from operations less capital spending against revenue24.8%top 14% of its family
  • gross margin46.4%bottom 31% of its family
  • research spending against revenue4.7%bottom 17% of its family

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

Growth drivers

as filed
6.5/10

What could actually drive growth from here?

top 35% of 64 in its family for growth drivers.

weight 45% of this tense · 65th percentile among 64 sector filers · read for its customers

From the record

Automatic Data Processing, Inc.'s growth drivers, from the filed years to fiscal 2026: revenue grew 6.8% a year over the last three filed years against 6.6% over all 10, speeding up (top 20% of its family); the newest year grew 6.7% (bottom 45%); research spending grew 6.8% a year (top 32%) (its annual reports). Automatic Data Processing, Inc. reported 5 product lines in fiscal 2026: HCM at $9.1 billion (42%), PEO Zero Margin Benefits Pass Throughs at $4.6 billion (21%), HRO at $4.0 billion (18%), and 2 more; 5 of 5 grew against the year before (its annual report).

What it rests on

  • three-year growth against the whole span+0.2 points a yeartop 20% of its family
  • the newest year's revenue growth6.7%bottom 45% of its family
  • three-year growth of research spending6.8%top 32% of its family

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

Expectations vs reality

as filed
3.8/10

Did its newest year beat what its own record pointed to?

bottom 38% of 54 in its family for expectations against reality.

weight 33% of this tense · 38th percentile among 54 sector filers · read for its shareholders

From the record

Automatic Data Processing, Inc.'s newest year against its own record: revenue of $22 billion in fiscal 2026 came in 0.1% below the $22 billion its prior three years' pace pointed to (bottom 44% of its family); net income of $4.4 billion against a prior three-year average of $3.7 billion (bottom 37%); a net margin of 20.1% against 19.4% before (bottom 32%) (its annual reports).

What it rests on

  • revenue against the prior three years' pace-0.1%bottom 44% of its family
  • net income against the prior three years' average+18%bottom 37% of its family
  • net margin against its prior average+0.7 pointsbottom 32% of its family

A production reading, recomputed from the filings on every data build, read from EDGAR Nov 13, 2026.

The grade is the company against its own industry, from its filings. It is not a view on the share price. How the grade is made

SI Assistanton ADP · research, not advice