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OverviewAnalysisPriceRevenueEarningsP/ERatiosDividendTargets

Automatic Data Processing, Inc. (ADP) Quarterly Financial Ratios

Last 48 quarters of trend data · Industrials · Staffing & Employment Services

← View 30-Year Annual Ratios

Valuation Multiples

Quarterly valuation ratios — annualised for comparability. YoY Δ shows same-quarter-prior-year change.

Automatic Data Processing, Inc.'s quarterly P/E stands at 15.0x, down 39.8% year-over-year — suggesting improving earnings relative to price. EV/EBITDA has compressed 39.1% YoY to 10.8x, reflecting multiple compression or accelerating EBITDA.

MetricTTMQ3 '26Q2 '26Q1 '26Q4 '25Q3 '25Q2 '25Q1 '25Q4 '24Q3 '24Q2 '24Q1 '24Q4 '23
P/E Ratio →21.4515.0324.4529.4734.5724.9631.0129.5729.5421.6827.3528.9529.31
—-39.8%-21.1%-0.3%+17.0%+15.1%+13.4%+2.1%+0.8%-2.2%-10.5%-4.4%-16.5%
P/S Ratio4.193.444.865.776.135.625.935.865.144.905.155.515.08
—-38.8%-18.1%-1.6%+19.3%+14.7%+15.2%+6.3%+1.1%+4.4%-9.1%-1.4%-4.4%
P/B Ratio14.1412.8716.2818.7320.3221.3223.5821.1921.5522.2422.2528.6525.95
—-39.6%-30.9%-11.6%-5.7%-4.2%+6.0%-26.1%-16.9%-11.2%-33.2%-21.7%-4.7%
P/FCF18.0710.0023.5250.1222.3720.9526.9437.0021.2319.1926.73124.2621.79
—-52.3%-12.7%+35.4%+5.4%+9.2%+0.8%-70.2%-2.6%+3.5%-18.5%+209.1%-23.7%
EV / EBITDA15.5910.8118.9839515.9524.7417.7520.9921.2520.0315.2518.4720.1519.61
—-39.1%-9.6%+185875.6%+23.5%+16.4%+13.6%+5.5%+2.1%-2.5%-11.0%-3.5%-16.4%
EV / EBIT16.9811.6217.6321.9125.3018.6421.9121.8320.7116.0219.5621.3820.75
—-37.6%-19.5%+0.4%+22.1%+16.4%+12.0%+2.1%-0.2%-4.5%-14.0%-5.9%-23.3%

Profitability

Quarterly margins and returns. Watch for margin compression across consecutive quarters.

Automatic Data Processing, Inc.'s operating margin was 30.1% in Q3 2026, up 6.2 pp QoQ and up 0.7 pp YoY. This marks the 3rd consecutive quarter of margin expansion, signaling a sustained improvement in operating efficiency. The trailing four-quarter average of 18.8% lags the current quarter, suggesting the recent improvement is above-trend. Gross margin contracted 6.6% YoY, suggesting cost inflation or competitive pricing pressure.

Margins

MetricTTMQ3 '26Q2 '26Q1 '26Q4 '25Q3 '25Q2 '25Q1 '25Q4 '24Q3 '24Q2 '24Q1 '24Q4 '23
Gross Margin50.8%48.3%46.1%45.2%50.3%51.7%49.9%49.8%49.5%51.4%49.6%49.0%48.9%
—-6.6%-7.7%-9.3%+1.6%+0.5%+0.7%+1.6%+1.3%+1.8%+2.7%+3.1%+4.6%
Operating Margin26.3%30.1%23.8%-2.4%23.5%29.4%25.7%26.3%23.0%29.4%25.4%24.7%23.2%
—+2.2%-7.4%-109.0%+2.3%+0.0%+1.5%+6.4%-0.7%+6.1%+2.7%+2.1%+15.6%
Net Margin19.8%22.9%19.8%19.6%17.8%22.5%19.1%19.8%17.4%22.6%18.8%19.0%17.3%
—+1.8%+3.9%-1.1%+2.1%-0.2%+1.4%+3.9%+0.3%+6.5%+1.6%+3.1%+14.5%

Return on Capital

MetricTTMQ3 '26Q2 '26Q1 '26Q4 '25Q3 '25Q2 '25Q1 '25Q4 '24Q3 '24Q2 '24Q1 '24Q4 '23
ROE76.0%21.3%16.6%16.1%15.1%22.9%18.5%19.3%18.1%26.5%22.5%24.6%21.6%
—-6.6%-9.9%-16.5%-16.4%-13.7%-18.1%-21.5%-16.2%-15.2%-22.9%-8.3%+27.9%
ROA7.6%1.8%1.5%1.9%1.7%2.1%1.7%1.8%1.4%2.0%1.7%1.7%1.4%
—-12.0%-9.9%+2.2%+18.5%+6.1%+2.7%+7.4%-0.2%+7.1%+2.4%+20.4%+51.4%
ROIC47.1%17.1%8.7%-0.7%9.4%16.8%10.2%11.1%16.4%21.6%15.6%16.4%15.5%
—+1.6%-14.9%-106.6%-42.8%-22.1%-34.5%-32.5%+5.6%+6.8%-5.6%+8.6%+39.4%

Leverage & Debt

Quarterly solvency trend — watch for debt spikes or covenant pressure.

Automatic Data Processing, Inc.'s Debt/EBITDA ratio is 2.1x, down from 3.3x last quarter — at a moderate level that warrants monitoring. Debt/Equity has declined for 3 consecutive quarters, reflecting a deleveraging trend.

MetricTTMQ3 '26Q2 '26Q1 '26Q4 '25Q3 '25Q2 '25Q1 '25Q4 '24Q3 '24Q2 '24Q1 '24Q4 '23
Debt / Equity1.460.630.721.491.460.730.841.620.810.730.770.960.98
—-14.0%-14.1%-7.8%+79.8%-0.7%+9.1%+69.4%-17.0%-18.4%-30.5%-29.6%-9.4%
Debt / EBITDA1.542.083.3111906.636.832.402.956.153.002.012.522.642.92
—-13.0%+12.0%+193548.1%+127.2%+19.3%+17.1%+132.7%+2.8%-9.0%-7.3%-12.8%-19.9%
Current Ratio1.051.041.031.051.051.021.001.011.011.011.010.980.99
—+2.7%+3.3%+4.0%+3.7%+0.2%-1.0%+3.2%+2.5%+1.4%+2.4%+1.3%-0.8%
Quick Ratio1.051.041.031.051.051.021.001.011.011.011.010.980.99
—+2.7%+3.3%+4.0%+3.7%+0.2%-1.0%+3.2%+2.5%+1.4%+2.4%+1.3%-0.8%
Interest Coverage12.6322.5512.1510.6611.4323.1010.8410.0411.5626.1011.7912.7910.31
—————————————

Download Financial Ratios Data

Includes 30+ ratios · 48 years · Updated daily

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ADP — Frequently Asked Questions

Quick answers to the most common questions about buying ADP stock.

What is Automatic Data Processing, Inc.'s quarterly P/E ratio trend?

Automatic Data Processing, Inc.'s current P/E is 21.5x. The average P/E over the last 4 quarters is 25.9x. Quarterly P/E ratios can vary due to seasonal revenue patterns and one-time charges.

How do Automatic Data Processing, Inc.'s margins change by quarter?

Automatic Data Processing, Inc.'s current operating margin is 26.3%. Margins have been expanding over recent quarters. Quarterly margins are particularly useful for identifying trend inflections that annual data smooths over.

Why look at ADP quarterly ratios instead of annual?

Quarterly financial ratios reveal short-term trend shifts — margin compression, debt spikes, or valuation re-ratings — that annual figures smooth over. They're essential for active investors tracking Automatic Data Processing, Inc.'s business trajectory between earnings reports.

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