Automatic Data Processing Inc (ADP)

Net profit margin

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	4,079,700	3,752,000	3,412,000	2,948,900	2,598,500
Revenue	US$ in thousands	20,560,900	19,202,600	18,012,200	16,498,300	15,005,400
Net profit margin		19.84%	19.54%	18.94%	17.87%	17.32%

June 30, 2025 calculation

Net profit margin = Net income ÷ Revenue
= $4,079,700K ÷ $20,560,900K
= 19.84%

The net profit margin of Automatic Data Processing Inc. demonstrates a consistent upward trajectory over the period from June 2021 to June 2025. Specifically, the net profit margin increased from 17.32% as of June 30, 2021, to 17.87% by June 30, 2022, representing an annual improvement of approximately 0.55 percentage points. The upward trend continued into 2023, reaching 18.94%, indicative of enhanced profitability relative to revenue. This growth persisted into 2024, with the net profit margin climbing to 19.54%, and further progressed to 19.84% by June 30, 2025.

This steady increase in profitability margins suggests that the company has been successful in maintaining or improving its cost management, pricing strategies, or a combination of both, resulting in greater net income relative to total revenue. The incremental improvements over the four-year span imply operational efficiencies or favorable shifts in revenue composition. Overall, the expanding net profit margin reflects a positive trend in Automatic Data Processing Inc.'s ability to generate profit from its revenues over the analyzed period.