Automatic Data Processing Inc Profit Margin
Data as of August 04, 2026
Profit Margin (TTM)
20.1%
Revenue (TTM)
$21.84B
Sector
Professional Services
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 Professional Services.
About Automatic Data Processing Inc
Automatic Data Processing Inc (ADP) operates in the Professional Services sector, specifically in Professional Services. With a market capitalization of about $106.51B, it ranks as a large-cap stock — a major established company.
Shares recently traded near $269.78, within a 52-week range of $188.16 to $315.26 (-14.4% from the high, +43.4% 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 Professional Services, 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
Within the Professional Services sector, profit margin levels vary with business model, growth rate, and capital structure. Automatic Data Processing Inc's current profit margin of 20.1% should be read alongside other ADP metrics on this site and with sector norms — not in isolation. View all Professional Services stocks.
Key Takeaways
- ADP is grouped in the Professional Services 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
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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 Professional Services.
Is 20.1% strong for Professional Services?
Compare ADP's margin trend over several quarters and against other Professional Services names.
How often is profit margin updated?
Margins update after quarterly earnings; price-only fields refresh on trading days. Data as of August 04, 2026.
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