Automatic Data Processing Inc (ADP)

Gross profit margin

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Gross profit	US$ in thousands	10,452,200	9,590,600	8,805,500	7,730,600	6,974,000
Revenue	US$ in thousands	20,560,900	19,202,600	18,012,200	16,498,300	15,005,400
Gross profit margin		50.84%	49.94%	48.89%	46.86%	46.48%

June 30, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $10,452,200K ÷ $20,560,900K
= 50.84%

The gross profit margin of Automatic Data Processing Inc. has exhibited a consistent upward trend over the analyzed period from June 30, 2021, to June 30, 2025. Specifically, the gross profit margin progressed from 46.48% in 2021 to 50.84% in 2025, representing an overall increase of approximately 4.36 percentage points.

Between June 30, 2021, and June 30, 2022, the margin experienced a modest increase from 46.48% to 46.86%, indicating a slight improvement in cost management or pricing strategies. The subsequent year, June 30, 2023, saw a more significant rise to 48.89%, suggesting enhanced efficiency or favorable changes in cost structure. The upward trend continued into 2024, reaching 49.94%, and further extended into 2025, attaining 50.84%.

This steady increase indicates that the company has been progressively improving its ability to generate gross profit from its revenues, potentially through better pricing strategies, cost control measures, or a shift toward higher-margin offerings. The consistent growth in gross profit margin reflects positively on Automatic Data Processing Inc.’s operational efficiency and pricing power throughout this period.