ADP Due Diligence

Run due diligence on ADP: check compliance and get alerts when suppliers change.

United States · www.adp.com · 10 vendors

Automatic Data Processing, Inc. (ADP) is an American multinational provider of cloud-based human capital management (HCM) solutions, including HR, payroll, talent, time, tax, and benefits administration. The company also offers business outsourcing services, analytics, and compliance expertise to businesses of all sizes globally.

Resilience scores

Technology vendors

Services catalogue

16 services in catalogue across 4 categories; runs on 10 sub-vendors.

Insights

Last updated 2026-08-15 · revision 1

10 direct vendors, 98 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Compliance

11 in-scope frameworks identified; showing 3.

ERISA — Evidence found

Evidence: https://www.adp.com/what-we-offer/benefits/retirement.aspx, https://www.adp.com/what-we-offer/benefits/benefits-administration.aspx

SOC 2 (source) — Evidence found

Evidence: https://www.adp.com/about-adp/data-security.aspx, https://www.adp.com/about-adp/data-security/client-resources.aspx, https://www.adp.com/about-adp/data-privacy.aspx

ISO 27701 — Evidence found

Evidence: https://www.adp.com/about-adp/data-privacy.aspx

Financials

Three-year financials

Financial Resilience Score: 9/10

ADP demonstrates exceptional financial resilience anchored by a highly recurring, subscription-like revenue model serving over 1.1 million clients with ~92% client revenue retention. The company generates strong and expanding margins (Adjusted EBIT margin of 26.8% in FY2026, best-in-class among HCM peers) and robust operating cash flow ($5.4B in FY2026), which comfortably funds $2.6B in dividends and $2.1B in share buybacks while sustaining investment. ADP's balance sheet is supported by ~$40B in client funds under investment (mostly AAA/AA rated), which generated $1.35B in interest income in FY2026. Historically ADP has held one of the highest credit ratings among U.S. non-financials (AAA range). It is a Dividend Aristocrat with 49+ years of consecutive dividend increases, reflecting durable long-term cash generation. Key risks include interest-rate sensitivity (falling rates would compress client-funds float income), exposure to U.S. employment cycles (pays-per-control grew only 1% in FY26), PEO margin compression from healthcare cost inflation, and rising competition from newer HCM platforms (Workday, Paycom, Rippling, Gusto, Deel). Cybersecurity and AI-driven disruption are also flagged as material risks. Overall, resilience is very high, warranting a score of 9.

Key strengths: Highly recurring subscription revenue with ~92% client retention, Best-in-class Adjusted EBIT margin of 26.8% (FY26), Strong operating cash flow of $5.4B in FY2026, $40B+ client funds float generating $1.35B interest income, Historically AAA-range credit rating, 49+ consecutive years of dividend increases (Dividend Aristocrat), Scale advantages: 75+ year history, compliance in 140+ countries, Serves 1.1M+ clients; pays 1 in 6 U.S. workers

Risk factors: Interest-rate sensitivity on client-funds float income, U.S. employment cycle exposure (pays-per-control +1% in FY26), PEO segment margin compression (-110 bps in FY26), Competitive pressure from Workday, Paycom, Paylocity, Rippling, Gusto, Deel, Cybersecurity risk on sensitive HR/financial data, AI-driven disruption to traditional payroll/HCM models, Regulatory risk across 140+ country operations

Revenue by geography

Revenue by product/service

Workforce by country

Signed-in users can see whether their own company is exposed to this vendor's disruption, plus the full sub-vendor list and country breakdowns, every in-scope compliance framework plus gaps and next steps, and alerts when any of it changes.

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