Is Automatic Data Processing, Inc. (ADP) halal? Halal. Based on AAOIFI screening, Automatic Data Processing, Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 82/100 (Grade: A).

Automatic Data Processing, Inc.

ADP: Is Automatic Data Processing, Inc. Halal?

Halal

Automatic Data Processing, Inc.

NASDAQIndustrialsUS

$218.76

+1.02%

Purify ~1.5% of income

About Automatic Data Processing, Inc.

Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. Its offerings include payroll, benefits administration, talent management, HR management, workforce management, insurance, retirement, and compliance services, as well as integrated HCM solutions. The PEO Services segment provides HR outsourcing solutions to small and mid-sized businesses through a co-employment model. This segment offers benefits package, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. The company was founded in 1949 and is headquartered in Roseland, New Jersey.

Sector: Industrials 路 Industry: Staffing & Employment Services

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 18, 2026
A

Very Good

Strong compliance across all metrics

82Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap4.6% / 30.0%

Compliance History

Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Screened: Jun 18, 2026Fiscal: Q3 2026Source: EDGAR

Purify Your ADP Dividends

1.5% non-compliant income

ADP has 1.5% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

87.4B

Price

$218.76

Sector

Industrials

Industry

Staffing & Employment Services

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Frequently Asked Questions

Is Automatic Data Processing, Inc. (ADP) halal to invest in?
Based on AAOIFI Standard 21 screening, Automatic Data Processing, Inc. (ADP) is rated Halal with a compliance grade of A (Very Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).
Why did Automatic Data Processing, Inc. get a A compliance rating?
Automatic Data Processing, Inc. (ADP) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 4.6% (limit 30%); interest-bearing deposits of 8.3% (limit 30%); prohibited income of 1.50% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Automatic Data Processing, Inc.'s Shariah verdict?
Automatic Data Processing, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Automatic Data Processing, Inc. re-screened for Shariah compliance?
Automatic Data Processing, Inc. (ADP) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 18, 2026.

Screened according to AAOIFI Standard No. 21 路 For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.