Automatic Data Processing, Inc. Profit Margin
Data as of June 01, 2026
Profit Margin (TTM)
20.1%
Revenue (TTM)
$21.60B
Sector
Technology
Ticker
ADP
How It's Calculated
What This Means
Automatic Data Processing, Inc.'s profit margin of 20.1% is solid for many industries, though norms vary widely in Technology.
About Automatic Data Processing, Inc.
Automatic Data Processing, Inc. (ADP) operates in the Technology sector, specifically in Software - Application. With a market capitalization of about $88.68B, it ranks as a large-cap stock — a major established company.
Shares recently traded near $221.84, within a 52-week range of $188.16 to $329.93 (-32.8% from the high, +17.9% from the low). Beta of 0.84 is broadly in line with typical market sensitivity.
Trailing profit margin is about 20.1%, signaling a solid profit margin for its industry.
Understanding This Metric
Profit margin connects income-statement quality to valuation. For Automatic Data Processing, Inc., trailing margin summarizes how much revenue converts to net profit after costs. In Technology, margins differ by business model — software and services often run higher margins than capital-intensive industries. Track margin trends across quarters; a stable or improving margin can support earnings durability, while sharp declines may warrant deeper review of guidance and competition.
Using This Number in Practice
At about 20.1% trailing profit margin, Automatic Data Processing, Inc. (ADP) suggests strong pricing power or cost discipline versus many large-cap peers. For large revenue bases, even a one-point margin move can shift earnings materially, so trend matters as much as the spot reading.
When comparing ADP to alternatives, combine margin with return on equity, revenue growth, and valuation. Use our margin calculator for scenario work, and browse the ADP metrics hub plus sector peers in the comparison section above.
Sector Comparison
Among Technology names on our S&P 100 coverage, Automatic Data Processing, Inc.'s profit margin of 20.1% can be compared with peers such as NVDA (63.0%), AAPL (27.2%), MSFT (39.3%). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Technology stocks.
Key Takeaways
- ADP is grouped in the Technology sector for peer comparisons.
- Recent beta of 0.84 suggests lower-than-market price sensitivity.
- Trailing profit margin of 20.1% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for ADP.
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Frequently Asked Questions
What is ADP's profit margin?
Trailing profit margin measures net income as a percent of revenue. Automatic Data Processing, Inc.'s margin is about 20.1% on this snapshot — higher margins often support stronger valuation multiples in Technology.
Is 20.1% strong for Technology?
Peers in Technology such as NVDA (63.0%), MU (41.5%), MSFT (39.3%) help benchmark ADP's 20.1%. Margins vary by sub-industry and accounting cycle.
How often is profit margin updated?
Margins update after quarterly earnings; price-only fields refresh on trading days. Data as of June 01, 2026.
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