Automatic Data Processing, Inc. (ADP) is a leading global provider of cloud-based Human Capital Management (HCM) technology solutions, offering both software and outsourcing services to help clients manage their workforce in a dynamic business and regulatory environment . ADP's business is structured around three core pillars: U.S. HCM Solutions, U.S. HR Outsourcing (HRO) Solutions, and Global Solutions . The company sells a range of services that include managing the entire employment cycle, payroll administration, employee benefits management, and international HCM and HRO services .
- Human Capital Management (HCM) - Provides cloud-based software and services to assist employers in managing the entire employment cycle.
- HR Outsourcing (HRO) - Offers comprehensive outsourcing services, including payroll administration and employee benefits management.
- PEO Zero-Margin Benefits Pass-Throughs - Manages benefits pass-throughs without adding margin.
- Global Solutions - Delivers international HCM and HRO services, including both local and multi-country solutions.
- Client Fund Interest Revenues - Generates revenue from interest on funds held for clients.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Maria Black ExecutiveBoard | President and CEO | Director at Delta Air Lines, Inc. | Maria Black joined ADP in 1996 and became CEO in January 2023. She has held numerous leadership roles, including President of ADP and President of Worldwide Sales and Marketing. She focuses on innovation and growth. | View Report → |
Chris D'Ambrosio Executive | Chief Strategy Officer | None | Chris D'Ambrosio joined ADP in 2014 and has held various leadership roles, including SVP and General Manager of Insurance Services and Small Business Services. | |
Don McGuire Executive | Chief Financial Officer (CFO) | None | Don McGuire joined ADP in 1998 and became CFO in October 2021. He previously served as President of Employer Services International and held other leadership roles in global operations. | |
Joe DeSilva Executive | EVP, North America and Chief of Operations | None | Joe DeSilva joined ADP in 2003 and became EVP, North America and Chief of Operations in January 2025. He previously served as President of Global Sales and other leadership roles. | |
Jonathan Lehberger Executive | Corporate Controller and Principal Accounting Officer | None | Jonathan Lehberger joined ADP in 2004 and became Corporate Controller and Principal Accounting Officer in July 2024. He previously served as SVP, Financial Strategy and Planning. | |
Michael A. Bonarti Executive | Chief Administrative Officer | None | Michael A. Bonarti joined ADP in 1997 and became Chief Administrative Officer in July 2021. He previously served as General Counsel and Secretary. | |
Sreeni Kutam Executive | President, Global Product and Innovation | None | Sreeni Kutam joined ADP in 2014 and became President, Global Product and Innovation in January 2023. He previously served as Chief Human Resources Officer. | |
Carlos A. Rodriguez Board | Non-Employee Director | Director at Microsoft Corporation | Carlos A. Rodriguez served as ADP's CEO from 2011 to 2022 and transitioned to Executive Chair in 2023. He is now a non-employee director as of January 2024. | |
David V. Goeckeler Board | Director | CEO of Western Digital Corporation | David V. Goeckeler has been a director at ADP since 2022. He is the CEO of Western Digital and has expertise in cloud computing and cybersecurity. | |
Francine S. Katsoudas Board | Director | EVP and Chief People, Policy & Purpose Officer at Cisco Systems | Francine S. Katsoudas has been a director at ADP since 2019. She is an executive at Cisco Systems and has expertise in people strategy and corporate policy. | |
John P. Jones Board | Director | None | John P. Jones has been a director at ADP since 2005. He is the former Chairman and CEO of Air Products and Chemicals, Inc.. | |
Linnie M. Haynesworth Board | Director | Director at Eastman Chemical, Micron, and Truist Financial | Linnie M. Haynesworth has been a director at ADP since 2020. She has expertise in cybersecurity and technology integration. | |
Nazzic S. Keene Board | Director | Director at ITT Inc. | Nazzic S. Keene has been a director at ADP since 2020. She is the former CEO of SAIC and has expertise in technology and cybersecurity. | |
Peter Bisson Board | Director | Director at Gartner Inc. | Peter Bisson has been a director at ADP since 2015. He is the Chair of the Corporate Development and Technology Advisory Committee and has expertise in strategy and technology. | |
Sandra S. Wijnberg Board | Director | Director at Cognizant, T. Rowe Price, and Hippo Holdings | Sandra S. Wijnberg has been a director at ADP since 2016. She is the Chair of the Audit Committee and has extensive financial expertise. | |
Scott F. Powers Board | Director | Board Chair of Sun Life Financial, Director at PulteGroup | Scott F. Powers has been a director at ADP since 2018. He is the Chair of the Compensation and Management Development Committee and has expertise in investment management. | |
Thomas J. Lynch Board | Independent Non-Executive Chair | Director at Cummins Inc. | Thomas J. Lynch has been a director at ADP since 2018 and became Independent Non-Executive Chair in January 2024. He is the former CEO of TE Connectivity Ltd.. | |
William J. Ready Board | Director | CEO of Pinterest, Director at Williams-Sonoma | William J. Ready has been a director at ADP since 2016. He is the CEO of Pinterest and has expertise in technology and digital transformation. |
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With the sizeable acquisition of WorkForce Software, how do you plan to integrate their offerings without complicating your existing platform ecosystem, and are there risks that this could potentially confuse your go-to-market strategy, especially since you have spent the last decade reducing platform complexity?
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Given that new business formations are down year-on-year and fiscal year-to-date, how do you plan to sustain growth in the small business segment, and what strategies do you have in place to mitigate the potential slowdown in small business demand?
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You mentioned that PEO pays per control growth is expected to be softer than Employer Services; with further deceleration observed, what concrete steps are you taking to bolster growth in the PEO segment, and how confident are you in achieving your PEO targets for the year?
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Considering that the Employer Services retention rate declined slightly, despite record client satisfaction scores, what factors led to this slight decrease in retention, and how are you addressing any underlying issues to ensure retention rates improve?
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With the issuance of $1 billion of notes at 4.75% to finance the $1.2 billion acquisition, how will the additional interest expense impact your earnings going forward, and are you concerned about the increased leverage on your balance sheet?
Research analysts who have asked questions during AUTOMATIC DATA PROCESSING earnings calls.
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Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
WorkForce Software | 2024 | ADP acquired WorkForce Software for approximately $1.2 billion in cash, expanding its global workforce management solutions and enhancing capabilities in time & attendance, scheduling, leave management, and more, with integration under the Employer Services segment expected to create about 0.5 percentage points of EBIT margin pressure in FY2025. |
Sora | 2023 | The acquisition of Sora, an intelligent workflow automation and data integration tool, reinforces ADP's best-in-class Human Capital Management strategy by complementing its API Central launch to improve integration and automation, with the deal completed in the first quarter of fiscal 2024. |
BTR (Payroll Business) | 2023 | ADP's acquisition of BTR's payroll business provides a physical footprint in Sweden and a strategic entrance into the Nordics, leveraging a long-standing partnership to expand its international payroll and broader HCM capabilities in regions with strong growth prospects. |
Recent press releases and 8-K filings for ADP.
- Delivered 7% revenue growth and 7% adjusted EPS growth in Q1 FY2026.
- Employer Services revenue rose 7% reported (5% organic) and PEO revenue grew 7%, with ADP reaffirming full-year consolidated revenue growth of 5–6% and adjusted EPS growth of 8–10%.
- Raised full-year client funds interest revenue guidance by $10 million to $1.30–1.32 billion, forecasting average client funds balance growth of 3–4% and a yield near 3.4%.
- Advanced strategic initiatives: scaling embedded payroll for small businesses, launched a benefits recommendation tool, achieved >80% adoption of NextGen Workforce Now in new mid-market clients, accelerated Lyric HCM bookings, acquired Pequody, and expanded AI-powered ADP Assist usage.
- Q1 margins impacted by integration costs: Employer Services margin down 50 bps, PEO margin down 140 bps, while full-year adjusted EBIT margin expansion of 50–70 bps is maintained.
- ADP delivered 7% revenue growth and 7% adjusted EPS growth in Q1 FY2026, driven by record Employer Services new business bookings and stable HCM demand.
- Employer Services revenue rose 7% reported (5% organic) and PEO revenue grew 7%; ADP maintained full-year guidance of 5–6% consolidated revenue growth, 50–70 bps EBIT margin expansion, and 8–10% adjusted EPS growth.
- Product adoption accelerated: NextGen Workforce Now was selected by over 80% of new mid-market clients, Lyric HCM bookings exceeded expectations, and ADP acquired Pequity to enhance compensation management offerings.
- AI initiatives expanded, with 5.5 million ADP Assist client conversations over the past year and generative AI tools rolled out across sales and service teams to boost productivity and client support.
- Delivered 7% revenue growth and 7% adjusted EPS growth in Q1 2026.
- Maintained fiscal 2026 guidance: consolidated revenue growth of 5%–6%, adjusted EPS growth of 8%–10%, and raised client funds interest revenue forecast with balances to grow 3%–4% at ~3.4% yield.
- Employer Services revenue up 7% (5% organic) with record Q1 new business bookings, flat pays per control, slight retention decline; PEO revenue up 7% with average worksite employee growth of 2%.
- Advanced strategic priorities: scaling Embedded Payroll in small business, launched benefits recommendation and digital ICHRA tools; mid-market adoption of Workforce Now NextGen at 80%, and strong ADP Lyric HCM bookings momentum.
- Completed Workforce Software integration (margin impact), acquired Pequity compensation software, and expanded AI with ADP Assist achieving 5.5 M client conversations, plus AI tools for sales and development teams.
- ADP delivered 7% revenue growth and 7% adjusted diluted EPS growth in Q1 FY2026.
- Employer Services revenue rose 7% with 6% organic constant currency growth and a 50 bps margin decline.
- PEO Services revenue increased 7% alongside a 140 bps margin decline.
- Fiscal 2026 outlook: total revenues expected to grow 5–6%, and adjusted diluted EPS to increase 8–10%.
- ADP (Nasdaq: ADP) announced the acquisition of Pequity, a compensation management software provider founded in 2019, to expand its global compensation management offering ( ).
- The deal integrates Pequity’s AI-enhanced insights, flexible spreadsheet-style configurations, budgeting and scenario-planning tools, and HCM ecosystem integrations into ADP’s product suite ( ).
- The acquisition addresses evolving pay transparency laws and growing demand for deeper analytics and flexible compensation planning among mid-size to multinational clients ( ).
- ADP reported Q1 FY26 revenue of $5.2 billion, up 7% year-over-year (6% organic constant currency), net earnings of $1.0 billion (up 6%), adjusted EBIT of $1.3 billion (+7%) with margin flat at 25.5%, and diluted EPS of $2.49 (up 6%).
- Employer Services revenues grew 7% (5% organic) with segment margin down 50 bps to 35.2%, while PEO Services revenues rose 7%, average paid worksite employees increased 2% to 754,000, and margin declined 140 bps to 13.0%.
- Interest income on funds held for clients increased 13% to $287 million, driven by a 7% rise in average client funds balances to $34.9 billion and a yield of 3.3% (up 20 bps).
- ADP maintained its fiscal 2026 guidance: 5–6% revenue growth, 50–70 bps of adjusted EBIT margin expansion, and 8–10% adjusted diluted EPS growth.
- ADP’s weekly preliminary employment estimates show U.S. private‐sector payrolls rose by an average of 14,250 jobs per week over the four weeks ending October 11, 2025, or about 55,000 jobs monthly, reversing a 32,000-job loss in September.
- ADP has begun releasing these weekly estimates every Tuesday to provide more current labor market insights amid government data delays, while continuing its comprehensive monthly jobs reports.
- The firm suspended the Federal Reserve’s access to its proprietary employment data after a Fed governor cited ADP data on labor market softness but continues to publish anonymized reports based on payroll data from over 26 million employees.
- ADP’s strong financial position, including 8.7% revenue growth over three years, a 26.32% operating margin, and a 19.84% net margin, underpins its ongoing reporting and human capital management services.
- ADP will issue a preliminary U.S. estimate of private-sector employment weekly on Tuesdays, starting October 28, 2025, reporting a 14,250 average job increase for the four weeks ending October 11, 2025.
- Monthly comprehensive ADP National Employment Report will continue on the first Wednesday of each month, including detailed industry, firm-size and geographical metrics.
- Weekly reports leverage anonymized payroll data from 26 million private-sector employees and 15 million pay change observations.
- Private‐sector employment fell by 32,000 jobs in September 2025, continuing a loss of momentum in job creation despite strong Q2 growth.
- Year‐over‐year pay growth for job‐stayers held at 4.5%, while pay gains for job‐changers slowed to 6.6% from 7.1% in August 2025.
- ADP’s preliminary rebenchmarking based on 2024 QCEW data reduced September’s reported job change by 43,000 jobs compared to pre‐benchmarked figures.
- ADP Embedded Payroll enables SMB software providers to integrate payroll processing, payments and tax compliance directly into their platforms, leveraging ADP’s HR and payroll technology.
- Flagship partnership with Fiserv’s Clover embeds RUN Powered by ADP into Clover’s POS system, allowing clients to streamline operations within a familiar interface.
- The solution includes enterprise-grade APIs, pre-built white-labeled user journeys and dedicated service teams to accelerate time-to-market and simplify integration.
- Designed to unlock new revenue streams, improve client retention and reduce operational friction and errors for SMB customers.