AUTOMATIC DATA PROCESSING INC (ADP)

Automatic Data Processing, Inc. (ADP) is a global provider of Human Capital Management (HCM) solutions, founded in 1949 to help businesses solve payroll challenges. It offers cloud-based, AI-enabled HR, payroll, time, benefits, talent, compliance and retirement services, plus HR outsourcing. ADP serves over 1.1 million clients and pays over 42 million workers in over 140 countries and territories. Its common stock trades on the NASDAQ Global Select Market under the symbol "ADP."

ADP has two reportable segments. Employer Services offers technology-based HCM solutions and HR outsourcing (other than PEO) to clients ranging from single-employee businesses to large enterprises. Its platforms include RUN Powered by ADP for small businesses (over 980,000 clients), ADP Workforce Now for mid-sized and large businesses (over 90,000 clients) and ADP Lyric HCM for global enterprises. Its services include payroll, benefits administration, talent management, workforce management, compliance (ADP SmartCompliance), human resources management, retirement services and insurance services. The Professional Employer Organization segment, ADP TotalSource, is a full-service PEO that operates through co-employment of worksite employees. It provides payroll, benefits, HR guidance, and risk management and workers' compensation programs to more than 19,000 clients and over 770,000 worksite employees in all 50 U.S. states. ADP also offers managed services (ADP Comprehensive Services and ADP Comprehensive Outsourcing Services) and global solutions such as ADP Global Payroll and ADP iHCM, serving over 70,000 clients. In the U.S., ADP pays about 26 million workers, and it pays over 16 million workers outside the U.S.

ADP's clients range from small local businesses to Fortune 500 companies, and no single client, industry or industry group is material to revenues. The most material markets for its HCM, global and non-PEO outsourcing solutions are the United States, Canada and Europe. The PEO business serves only employees located in the United States. ADP offers wage and tax collection or remittance services in the United States, Canada, the United Kingdom, Australia, India, China, Hong Kong, Macau, Malaysia and Taiwan. It markets through a direct sales force, digital sales and indirect channels such as certified public accountants and banks.

ADP has about 67,000 associates and integrates directly with tens of thousands of government entities, tax authorities and banking institutions. It spent about $1.405 billion on research and development in fiscal 2026, including investment in generative and agentic AI. Its competitors include business outsourcing companies, ERP providers, cloud-based HCM providers, financial institutions, other PEOs and clients' in-house HCM functions. Competition rests on product and service quality, reputation, ease of use, breadth of offerings and price. ADP is subject to complex U.S. and foreign laws on employment, privacy, data protection, AI and cybersecurity, including GDPR and CPRA, and it has implemented Binding Corporate Rules. It also maintains an AI & Data Ethics Council for responsible AI governance.