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How Automatic Data Processing (ADP) makes money

Automatic Data Processing (ADP) made $5.5B of revenue in the first quarter fiscal 2027 (Q1 FY27), +6% from a year earlier. HCM brought in $2.3B (41%); PEO zero-margin benefits pass-throughs brought in $1.2B (22%); HRO, excluding PEO zero-margin benefits pass-throughs brought in $953M (17%). Of every dollar of revenue, 24¢ was left as operating profit, 20¢ was left as net earnings.

Drawing the Sankey…

Automatic Data Processing revenue by segment, Q1 FY27Automatic Data Processing revenue by segment, Q1 FY27HCM$2.3BPEO zero-margin benefits pass-thr…$1.2BHRO, excluding PEO zero-margin be…$953MGlobal$724MInterest on funds held for clients$329M
Automatic Data Processing revenue by quarterAutomatic Data Processing revenue by quarter$5.6BQ3 FY25$5.1BQ4 FY25$5.2BQ1 FY26$5.4BQ2 FY26$5.9BQ3 FY26$5.5BQ4 FY26$5.5BQ1 FY27
Automatic Data Processing: where each dollar of revenue goesAutomatic Data Processing: where each dollar of revenue goesOperating profit24¢Income tax6¢Net earnings20¢Operating cash flow12¢Free cash flow11¢

Revenue by segment, Q1 FY27

SegmentRevenueShareQ/QY/Y
HCM$2.3B41.1%+1%+5%
PEO zero-margin benefits pass-throughs$1.2B22.4%+4%+9%
HRO, excluding PEO zero-margin benefits pass-throughs$953M17.4%-0.9%+5%
Global$724M13.2%-3%+5%
Interest on funds held for clients$329M6.0%-7%+15%

Where each dollar of revenue goes

LineQ1 FY27% of revenue
Revenue$5.5B100.0%
Operating profit$1.3B23.9%
Income tax$330M6.0%
Net earnings$1.1B20.5%
Operating cash flow$651M11.9%
Free cash flow$598M10.9%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q1 FY27$5.5B+6%
Q4 FY26$5.5B+7%
Q3 FY26$5.9B+7%
Q2 FY26$5.4B+6%
Q1 FY26$5.2B+7%
Q4 FY25$5.1B+8%
Q3 FY25$5.6B+6%

From Automatic Data Processing's 10-Q filed Oct 30, 2026 (on EDGAR).

Questions

How does Automatic Data Processing make money?

Automatic Data Processing (ADP) made $5.5B of revenue in the first quarter fiscal 2027 (Q1 FY27), +6% from a year earlier. HCM brought in $2.3B (41%); PEO zero-margin benefits pass-throughs brought in $1.2B (22%); HRO, excluding PEO zero-margin benefits pass-throughs brought in $953M (17%). Of every dollar of revenue, 24¢ was left as operating profit, 20¢ was left as net earnings.

What is Automatic Data Processing's biggest business?

HCM: $2.3B in the first quarter fiscal 2027, 41% of revenue, +5% from a year earlier.

What is Automatic Data Processing's profit margin?

Net earnings were $1.1B, 20.5% of revenue, in the first quarter fiscal 2027; the operating margin was 23.9%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.