ADP Automatic Data Processing margins

Relative Growth: Rel. Growth: 69

Relative Strength: Rel. Strength: 85

Relative Valuation: Rel. Valuation: 36

Relative Profitability: Rel. Profitability: 89

Gross margin

46.6%

Operating margin

26.5%

EBITDA margin

31.2%

Net margin

20.3%

Currently, Automatic Data Processing has a gross margin of 46.6%, an operating margin of 26.5%, an EBITDA margin of 31.2%, and a net margin of 20.3%. The company's available margins all improved, with gross margin showing the strongest expansion of 0.7 percentage points.

ADP margin history

Gross, operating, EBITDA and net margin trends

Automatic Data Processing's margins averaged 45.89% gross, 26.13% operating, 30.65% EBITDA, and 19.8% net over the last 3 years. Compared with their three-year averages, all four current margins are higher.

ADP margin expansion

Year-over-year margin changes in percentage points

The biggest expansion was in gross margin, which rose by 0.7 percentage points. The other available margins also improved.

Gross margin expansion

0.7pp

Operating margin expansion

0.3pp

EBITDA margin expansion

0.5pp

Net margin expansion

0.5pp

ADP Gross margin

Across the last 3 years, Automatic Data Processing's gross margin averaged 45.89%. Against its three-year average, Automatic Data Processing's gross margin is currently 46.6%, 0.7 percentage points above its three-year average. Gross margin was highest at 46.6% in Sep 2026 and lowest at 45.2% in Dec 2023.

ADP Operating margin

Across the last 3 years, Automatic Data Processing recorded an average operating margin of 26.13%. Automatic Data Processing's current operating margin is 26.5% and is 0.4 percentage points above its three-year average. The highest operating margin for Automatic Data Processing was 26.5% in Sep 2026, while the lowest was 25.3% in Dec 2023.

ADP EBITDA margin

Across the last 3 years, Automatic Data Processing's EBITDA margin averaged 30.65%. The current EBITDA margin stands at 31.2%, 0.6 percentage points above its three-year average. EBITDA margin was highest at 31.2% in Sep 2026 and lowest at 29.6% in Dec 2023.

ADP Net margin

Over the last 3 years, Automatic Data Processing recorded an average net margin of 19.8%. Against its three-year average, Automatic Data Processing's net margin is currently 20.3%, 0.5 percentage points above its three-year average. The highest net margin for Automatic Data Processing was 20.3% in Sep 2026, while the lowest was 19.1% in Dec 2023.

ADP margin group comparison

Margins compared with peer-group, industry and sector averages

With a gross margin of 46.6%, ADP stands above the Industrials sector, the industry and its peers average. In comparison with its Industrials sector average of 32.5%, Automatic Data Processing's gross margin is 43% higher.

ADP margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is Automatic Data Processing's gross margin?

The current gross margin for ADP is 46.6% as of Sep 30, 2026.

What is Automatic Data Processing's operating margin?

As of Sep 30, 2026, ADP has an operating margin of 26.5%.

What is Automatic Data Processing's EBITDA margin?

For the period ending Sep 30, 2026, ADP recorded an EBITDA margin of 31.2%.

What is Automatic Data Processing's net margin?

For the period ending Sep 30, 2026, ADP recorded a net margin of 20.3%.

What are the average margins of ADP?

The three-year average margins for ADP were 45.9% gross, 26.1% operating, 30.7% EBITDA, and 19.8% net.

What are the highest historical margins of ADP?

Within the 5-year period, ADP recorded its highest margins at 46.6% gross in Sep 2026, 26.5% operating in Sep 2026, 31.2% EBITDA in Sep 2026, and 20.3% net in Sep 2026.

What are the lowest historical margins of ADP?

Automatic Data Processing's lowest recorded margins during the past 5 years were 42.4% gross in Dec 2021, 22.6% operating in Dec 2021, 26.4% EBITDA in Dec 2021, and 17.5% net in Dec 2021.