Automatic Data Processing, Inc. (ADP) Gross Margin: 50.84%
Is Automatic Data Processing, Inc.’s gross margin high or low?
Automatic Data Processing, Inc.'s gross margin of 50.84% is in line with its 5-year average of 48.16%, near the high end of its 5-year range (45.96%–50.84%).
The gross margin for Automatic Data Processing, Inc. (ADP) is 50.84% as of Wednesday, June 10, 2026. It is above its 12-month average by 0.89% (50.39%).
ADP Gross Margin Chart
ADP Average Gross Margin Chart
ADP Current vs Average Gross Margin Chart
ADP Gross Margin Metrics
GROSS MARGIN
50.84%
GROSS MARGIN AVG TTM
50.39%
GROSS MARGIN AVG 3Y
49.13%
GROSS MARGIN AVG 5Y
48.16%
GROSS MARGIN AVG 10Y
47.15%
GROSS MARGIN AVG 15Y
47.09%
GROSS MARGIN AVG 20Y
48.12%
CURRENT VS TTM AVG
+0.89%
CURRENT VS 3Y AVG
+3.48%
CURRENT VS 5Y AVG
+5.56%
CURRENT VS 10Y AVG
+7.84%
CURRENT VS 15Y AVG
+7.97%
CURRENT VS 20Y AVG
+5.65%
ADP Competitors' Gross Margin
| NAME | MARKET CAP | GROSS MARGIN | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Automatic Data Processing, Inc. (ADP) | — | 50.84% | 50.39% | 49.13% | 48.16% |
| Cummins Inc. (CMI) | $92.35B | 25.29% | 25.02% | 24.55% | 24.43% |
| United Parcel Service, Inc. (UPS) | $87.79B | 17.79% | 18.42% | 19.11% | 20.03% |
| 3M Company (MMM) | $81.55B | 39.55% | 40.28% | 40.80% | 43.11% |
| Emerson Electric Co. (EMR) | $79.77B | 52.84% | 51.81% | 49.57% | 47.39% |
| Illinois Tool Works Inc. (ITW) | $73.81B | 44.10% | 43.88% | 42.30% | 41.61% |
| Parker-Hannifin Corporation (PH) | $114.18B | 36.85% | 36.38% | 33.57% | 31.16% |
| PACCAR Inc (PCAR) | $62.99B | 16.23% | 18.08% | 19.00% | 18.78% |
| Lockheed Martin Corporation (LMT) | $122.23B | 10.15% | 9.95% | 11.25% | 11.96% |
| Rocket Lab USA, Inc. (RKLB) | $62.17B | 36.56% | 30.53% | 22.77% | 9.07% |
Gross Margin Analysis
Gross Margin
50.8%
(Revenue - COGS) / Revenue
Automatic Data Processing, Inc. Gross Margin Formula & Definition
Gross Margin = Gross Profit / Revenue
Gross margin is the percentage of revenue remaining after the cost of goods sold, reflecting core product profitability.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Automatic Data Processing, Inc. Gross Margin FAQ
- What is the gross margin for Automatic Data Processing, Inc. (ADP)?
- The gross margin for ADP stock is 50.84%.
- Is Automatic Data Processing, Inc.'s gross margin high or low?
- Automatic Data Processing, Inc.'s gross margin of 50.84% is in line with its 5-year average of 48.16%, near the high end of its 5-year range (45.96%–50.84%).
- What is the TTM average gross margin for Automatic Data Processing, Inc. (ADP)?
- The TTM average gross margin for ADP stock is 50.39%.
- What is the 3Y average gross margin for Automatic Data Processing, Inc. (ADP)?
- The 3Y average gross margin for ADP stock is 49.13%.
- What is the 5Y average gross margin for Automatic Data Processing, Inc. (ADP)?
- The 5Y average gross margin for ADP stock is 48.16%.
- What is the 10Y average gross margin for Automatic Data Processing, Inc. (ADP)?
- The 10Y average gross margin for ADP stock is 47.15%.
- What is the 15Y average gross margin for Automatic Data Processing, Inc. (ADP)?
- The 15Y average gross margin for ADP stock is 47.09%.
- What is the 20Y average gross margin for Automatic Data Processing, Inc. (ADP)?
- The 20Y average gross margin for ADP stock is 48.12%.
Automatic Data Processing, Inc. Gross Margin History
| DATE | GROSS MARGIN |
|---|---|
| 2025-06-30 | 50.84% |
| 2024-06-30 | 49.94% |
| 2023-06-30 | 48.89% |
| 2022-06-30 | 46.86% |
| 2021-06-30 | 46.48% |
| 2020-06-30 | 45.96% |
| 2019-06-30 | 46.70% |
| 2018-06-30 | 45.39% |
| 2017-06-30 | 45.62% |
| 2016-06-30 | 45.89% |
| 2015-06-30 | 46.03% |
| 2014-06-30 | 46.05% |
| 2013-06-30 | 46.42% |
| 2012-06-30 | 46.52% |
| 2011-06-30 | 47.17% |
| 2010-06-30 | 48.63% |
| 2009-06-30 | 50.26% |
| 2008-06-30 | 51.75% |
| 2007-06-30 | 52.81% |
| 2006-06-30 | 52.94% |
| 2005-06-30 | 49.41% |
| 2004-06-30 | 54.54% |
| 2003-06-30 | 56.67% |
| 2002-06-30 | 57.59% |
| 2001-06-30 | 58.67% |
| 2000-06-30 | 56.82% |
| 1999-06-30 | 57.11% |
| 1998-06-30 | 57.00% |
| 1997-06-30 | 58.11% |
| 1996-06-30 | 57.48% |
Related Metrics
About Automatic Data Processing, Inc.
Automatic Data Processing, Inc. (ADP) is a global provider of cloud-based solutions designed for human capital management (HCM). The company organizes its operations into two primary segments: Employer Services and Professional Employer Organization (PEO). Through its Employer Services division, ADP delivers strategic, cloud-powered platforms and comprehensive human resources (HR) outsourcing. This encompasses a wide array of services such as payroll processing, benefits administration, talent acquisition and management, general HR and workforce management, insurance, retirement planning, and regulatory compliance, often integrated into holistic HCM solutions. Conversely, the Professional Employer Organization (PEO) segment specializes in offering HR outsourcing to small and mid-sized businesses, leveraging a co-employment framework. This segment's offerings span robust benefits packages, regulatory protection and compliance, talent engagement strategies, specialized HR expertise, all-encompassing outsourcing, and even recruitment process outsourcing. Established in 1949, ADP maintains its corporate headquarters in Roseland, New Jersey.
- Sector
- Industrials
- Industry
- Staffing & Employment Services
- CEO
- Maria Black