Background of Automatic Data Processing Inc
Automatic Data Processing Inc is a Staffing & Employment Services company headquartered in Roseland, New Jersey and is a provider of human capital management (HCM) solutions to employers, offering solutions to businesses of various sizes. Automatic Data Processing Inc has a rich history that dates to 1949, when Henry Taub founded Automatic Payrolls, Inc. as a manual payroll processing business with his brother Joe.
In 1961, the company changed its name to Automatic Data Processing, Inc. (ADP), and began using punched card machines, check printing machines, and mainframe computers. ADP went public in 1961 with 300 clients, 125 employees, and revenues of approximately $400,000 USD.
In 1965 Automatic Data Processing Inc established a subsidiary in the United Kingdom and in 1970, the company’s stock transitioned from trading on American Stock Exchange to trading on the New York Stock Exchange. Automatic Data Processing Inc acquired the pioneering online computer services company Time Sharing Limited (TSL) in 1974 and Cyphernetics in 1975.
From 1985 onward, ADP’s annual revenues exceeded the $1 billion mark, with pay checks processed for about 20% of the U.S. workforce. In the 1990s, ADP began acting as a professional employer organization (PEO) and acquired Autonom, a German company and the payroll and human resource services company, GSI in Paris.
In 1998, ADP acquired UK-based Chessington Computer Centre that supplied administration services to the UK Government and in 2006 Automatic Data Processing Inc acquired Kerridge Computer Co. Ltd., a dealer management systems (DMS) provider to auto dealers, primarily in the United Kingdom. In 2007, the ADP Brokerage Service Group was spun off to form Broadridge Financial Solutions, Inc. and in 2017, Automatic Data Processing Inc acquired The Marcus Buckingham Company (TMBC).
In October 2017, Automatic Data Processing Inc acquired Global Cash Card, a digital payments facilitator and in January 2018, also acquired WorkMarket, a New York City-based software platform company that assists businesses to manage freelancers, contractors, and consultants. In 2025, Automatic Data Processing Inc was ranked 227 on the Fortune 500 list of the largest United States corporations by revenue.
Automatic Data Processing Inc has also been included on Fortune Magazine’s “World’s Most Admired Companies” List for 14 consecutive years and has earned recognition from DiversityInc as one of the top companies for diversity and inclusion in the United States for 11 consecutive years. Automatic Data Processing Inc oversees a high-value product portfolio which provides cloud-based human capital management solutions worldwide.
Automatic Data Processing Inc operates through two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.
The PEO Services segment provides HR outsourcing solutions to small and mid-sized businesses through a co-employment model. Today, Automatic Data Processing Inc is truly one of the most valuable Staffing & Employment Services companies in the world with a market capitalization of US$ 87.691 billion recorded in July 2025.
In 2025 the total staff compliment for Automatic Data Processing Inc was more than 58,000. Automatic Data Processing Inc also provides business process outsourcing solutions. As a PEO, Automatic Data Processing Inc TotalSource provides HR management services while the client continues to direct the day-to-day job-related duties of the employees.
Automatic Data Processing Inc Shares Growth Driver
Automatic Data Processing, Inc. (ADP) has gained 37.2% over the past six months, outperforming the 19% rally of the Zacks S&P 500 composite. Automatic Data Processing Inc has a long-term expected earnings per share (three to five years) growth rate of 12%.
Through its ongoing transformation initiatives Automatic Data Processing Inc has been able to accelerate DataCloud penetration and increase investment in inside sales, mid-market migrations and service-alignment initiatives. This way Automatic Data Processing Inc continues to innovate, improve operations, expand margins, and enhance innovation abilities.
At the end of second-quarter fiscal 2025 Automatic Data Processing Inc had a total debt of $1.99 billion, a ratio of 0.25 and lower than the industry’s 0.35. Lower debt as a percentage of total capital indicates that a company has a lower risk of insolvency. Further, Automatic Data Processing Inc did not have any short-term debt at the end of the quarter.
Automatic Data Processing Inc has strengthened its stake in the global human capital management (HCM) market through strategic acquisitions like Celergo, WorkMarket, Global Cash Card and The Marcus Buckingham Company. The above buyouts have strengthened ADP’s customer base and helped it expand operations in international markets.
Automatic Data Processing Inc continues to pursue acquisitions that strategically fit its overall business mix and are easy to integrate over the long term. Automatic Data Processing Inc has a strong business model, high recurring revenues, good margins, robust client retention and low capital expenditure.
Automatic Data Processing Inc has a strong cash generating ability that allows it to pursue growth in areas that exhibit true potential. Automatic Data Processing Inc has streamlined its business to strengthen its core operations overall and continues to innovate, improve operations, and invest in its ongoing transformation efforts.
Automatic Data Processing Inc Investor Tip
Automatic Data Processing Inc trades its shares on the NASDAQ Stock Market (NASDAQ) under the stock symbol ADP. Automatic Data Processing Inc forms part of the NASDAQ-100. An analysis on the market performance for the first quarter of 2025 indicated a total revenue of US$ 14,645,200,000 along with a gross profit of $ 6,143,300,000 and EBITDA of $ 3,762,600,000.
Automatic Data Processing Inc total revenue has grown from $12.38 billion in 2017 to $14.17 billion in 2019 and is expected to further grow to $15.9 billion by 2025. Revenue growth of $1.72 billion over the next 2 years is to be driven primarily by $1 billion growth in payroll processing revenue.
Automatic Data Processing Inc’s payroll processing division, which manages paycheck processing, tax filing, and pension plans for its clients’ employees, is expected to contribute $9.83 billion to total revenue in 2025, making up 66% of ADP’s $14.95 billion estimate. This sturdy growth has helped drive a more than 50% growth in ADP’s stock price since December 2017. Data from this analysis should be weighed against forecasted performance during this pandemic, but for now, prices on shares and in turn dividends remain unaffected, which provides shareholders with assurance that they will have a strong buy-in on NASDAQ.
Sector
Industrials
Industry
Staffing & Employment Services
Sub industry
Software
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