Is ADP halal?

What the company does

ADP provides payroll and HR software: it processes the paycheck of roughly one in six US workers. Its money comes from service fees paid by client companies (plus interest on client funds held — the ratio is checked by the screener).

What was checked

The AAOIFI standard has four steps: business activity first, then three financial ratios. Fail one and the stock is not halal.

• Business activity

  No prohibited activity

• Interest-bearing debt / market cap

  limit 30%

  Interest-bearing debt $4.96B ÷ 36-month average market cap $106.41B = 4.7%

  4.7%

  Pass

• Cash & investments / market cap

  limit 30%

  Cash + interest-bearing securities $4.23B ÷ 36-month average market cap $106.41B = 4.0%

  4.0%

  Pass

• Non-compliant income / total revenue

  limit 5%

  Interest income $371.00M ÷ annual revenue $21.95B (2026) = 1.7%

  1.7%

  Pass

Figures from the company's filings (2026-06-30), USD. Market cap is a 36-month average (the S&P Shariah index approach), so a one-day price move does not flip the verdict. Today's market cap: $110.15B.

For information (AAOIFI 3/1 note): cash + receivables are 12.3% of total assets (2026-06-30). AAOIFI recommends tangible assets of at least one third — this figure does not affect the verdict, and other major screeners do not apply it either.

In the lists

In the S&P 500

0.17% weight · #106 of 503

Among halal stocks

0.16% · #85 of 1455

Held by funds

Not held by any tracked fund

Dividend

2.43% · purify 1.7% · net 2.38%