ADP is the world’s largest payroll and Human Capital Management (HCM) software and services company. The company provides payroll processing, tax filing, and human resources administration, paying roughly 1 in 6 workers in the US. ADP manages the employee lifecycle through three primary platforms: RUN for small businesses, Workforce Now for mid-sized organizations, and Lyric HCM for large enterprises. These platforms integrate payroll, HR, benefits, and compliance into a single system. ADP operates through two segments: Employer Services and Professional Employer Organization (PEO). Employer Services generates recurring revenue through subscription fees driven by client retention and the total number of employees on client payrolls. The PEO segment, ADP TotalSource, uses a co-employment model to manage HR, benefits, and insurance for small and mid-sized firms. ADP also earns interest income on client funds held in transit during the payroll process. The company’s strategy focuses on embedding AI-driven tools into client workflows and leveraging its global scale to provide compliance services across more than 140 countries. ADP acquires customers through a large direct sales force supplemented by a network of partner channels including accountants and financial institutions.