Automatic Data Processing Inc

ADPTechnology

Sentinellis Health Score

8.9/10

Financially healthy

Market Cap

$88.1B

Revenue

$20.6B

P/E Ratio

20.6x

AI Summary

ADP provides cloud-based payroll, HR administration, benefits management, and workforce compliance software primarily to small and mid-sized businesses through platforms like RUN Powered by ADP and ADP Workforce Now [COMPANY OVERVIEW]. The company also operates a Professional Employer Organization (PEO) segment called ADP TotalSource, where it becomes a co-employer and handles all HR, payroll, benefits, and compliance tasks for client companies [COMPANY OVERVIEW]. ADP manages employee data and regulatory filings for millions of workers, positioning itself as essential infrastructure for businesses that need to stay compliant with constantly changing labor laws.

Automatic Data Processing (ADP) is a $88.1 billion payroll and human resources software provider serving businesses worldwide, founded in 1949 and employing 67,000 people [COMPANY OVERVIEW]. The company recently raised its 2026 financial forecasts, betting that artificial intelligence will increase demand for its services rather than replace them, as AI-driven workplace complexity requires more expert help with compliance and payroll management [Yahoo Finance]. ADP's stock has significantly underperformed the broader market, falling 30% over the past year while the S&P 500 rose 24%, despite the company's solid financial position and strategic optimism around AI [Yahoo Finance].

ADP shows strong financial health with excellent margins, solid free cash flow generation, and minimal leverage [Yahoo Finance].

Confidence8/10