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Automatic Data Processing, Inc. (ADP) Operating Margin: 26.32%

Is Automatic Data Processing, Inc.’s operating margin high or low?

Automatic Data Processing, Inc.'s operating margin of 26.32% is in line with its 5-year average of 23.97%, near the high end of its 5-year range (21.53%–26.32%).

The operating margin for Automatic Data Processing, Inc. (ADP) is 26.32% as of Wednesday, June 10, 2026. It is above its 12-month average by 1.11% (26.03%).

ADP Operating Margin Chart

ADP Operating Margin
26.32%+2.25% 1Y
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ADP Average Operating Margin Chart

ADP Current vs Average Operating Margin Chart

ADP Operating Margin Metrics

OPERATING MARGIN

26.32%

OPERATING MARGIN AVG TTM

26.03%

OPERATING MARGIN AVG 3Y

25.03%

OPERATING MARGIN AVG 5Y

23.97%

OPERATING MARGIN AVG 10Y

21.96%

OPERATING MARGIN AVG 15Y

20.91%

OPERATING MARGIN AVG 20Y

20.61%

CURRENT VS TTM AVG

+1.11%

CURRENT VS 3Y AVG

+5.14%

CURRENT VS 5Y AVG

+9.80%

CURRENT VS 10Y AVG

+19.85%

CURRENT VS 15Y AVG

+25.87%

CURRENT VS 20Y AVG

+27.73%

ADP Competitors' Operating Margin

NAMEMARKET CAPOPERATING MARGINTTM3Y5Y
Automatic Data Processing, Inc. (ADP)26.32%26.03%25.03%23.97%
Cummins Inc. (CMI)$92.35B11.48%11.24%9.52%10.13%
United Parcel Service, Inc. (UPS)$91.69B8.87%9.21%10.43%10.75%
3M Company (MMM)$81.55B18.29%19.18%16.68%18.27%
Emerson Electric Co. (EMR)$79.77B19.60%17.42%17.53%16.97%
Illinois Tool Works Inc. (ITW)$73.81B26.28%26.55%25.49%24.82%
Parker-Hannifin Corporation (PH)$114.18B20.45%20.02%18.67%17.65%
PACCAR Inc (PCAR)$62.99B10.41%12.47%13.66%10.74%
Rocket Lab USA, Inc. (RKLB)$62.65B-38.03%-40.77%-54.59%-89.77%
Lockheed Martin Corporation (LMT)$122.23B10.30%10.09%11.35%12.04%

Operating Efficiency

Gross Margin

50.8%

Operating Margin

26.3%

Automatic Data Processing, Inc. Operating Margin Formula & Definition

Operating Margin = Operating Income / Revenue

Operating margin is the percentage of revenue remaining after operating expenses, reflecting operating efficiency.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

Automatic Data Processing, Inc. Operating Margin FAQ

What is the operating margin for Automatic Data Processing, Inc. (ADP)?
The operating margin for ADP stock is 26.32%.
Is Automatic Data Processing, Inc.'s operating margin high or low?
Automatic Data Processing, Inc.'s operating margin of 26.32% is in line with its 5-year average of 23.97%, near the high end of its 5-year range (21.53%–26.32%).
What is the TTM average operating margin for Automatic Data Processing, Inc. (ADP)?
The TTM average operating margin for ADP stock is 26.03%.
What is the 3Y average operating margin for Automatic Data Processing, Inc. (ADP)?
The 3Y average operating margin for ADP stock is 25.03%.
What is the 5Y average operating margin for Automatic Data Processing, Inc. (ADP)?
The 5Y average operating margin for ADP stock is 23.97%.
What is the 10Y average operating margin for Automatic Data Processing, Inc. (ADP)?
The 10Y average operating margin for ADP stock is 21.96%.
What is the 15Y average operating margin for Automatic Data Processing, Inc. (ADP)?
The 15Y average operating margin for ADP stock is 20.91%.
What is the 20Y average operating margin for Automatic Data Processing, Inc. (ADP)?
The 20Y average operating margin for ADP stock is 20.61%.

Automatic Data Processing, Inc. Operating Margin History

DATEOPERATING MARGIN
2025-06-3026.32%
2024-06-3025.74%
2023-06-3025.02%
2022-06-3023.05%
2021-06-3022.16%
2020-06-3021.53%
2019-06-3021.20%
2018-06-3019.34%
2017-06-3019.53%
2016-06-3019.27%
2015-06-3018.41%
2014-06-3018.21%
2013-06-3018.04%
2012-06-3018.37%
2011-06-3018.47%
2010-06-3019.91%
2009-06-3020.64%
2008-06-3019.67%
2007-06-3019.31%
2006-06-3018.99%
2005-06-3019.56%
2004-06-3018.55%
2003-06-3021.24%
2002-06-3023.89%
2001-06-3023.04%
2000-06-3016.61%
1999-06-3019.92%
1998-06-3018.93%
1997-06-3019.00%
1996-06-3018.65%