Automatic Data Processing (NASDAQ:ADP) Issues FY 2026 Earnings Guidance

Automatic Data Processing (NASDAQ:ADP) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided EPS guidance of 10.091-11.011 for the period, compared to the consensus EPS estimate of 10.920. The company issued revenue guidance of $21.8 billion-$21.8 billion, compared to the consensus revenue estimate of $21.8 billion.

Automatic Data Processing Price Performance

Shares of NASDAQ:ADP opened at $250.69 on Thursday. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.05 and a current ratio of 1.05. The firm has a market cap of $101.39 billion, a price-to-earnings ratio of 24.75 and a beta of 0.86. The business has a 50-day simple moving average of $258.55 and a two-hundred day simple moving average of $278.55. Automatic Data Processing has a fifty-two week low of $247.18 and a fifty-two week high of $329.93.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 EPS for the quarter, topping analysts’ consensus estimates of $2.57 by $0.05. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. The firm had revenue of $5.36 billion during the quarter, compared to analyst estimates of $5.34 billion. During the same period in the previous year, the business posted $2.35 earnings per share. The business’s revenue for the quarter was up 6.2% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. On average, analysts expect that Automatic Data Processing will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be paid a dividend of $1.70 per share. The ex-dividend date is Friday, March 13th. This represents a $6.80 dividend on an annualized basis and a yield of 2.7%. Automatic Data Processing’s payout ratio is currently 67.13%.

Automatic Data Processing declared that its board has authorized a stock repurchase plan on Wednesday, January 14th that permits the company to buyback $6.00 billion in outstanding shares. This buyback authorization permits the business services provider to purchase up to 5.8% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on ADP. Citigroup started coverage on Automatic Data Processing in a report on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 price objective for the company. Jefferies Financial Group reaffirmed an “underperform” rating and set a $230.00 price target (down previously from $245.00) on shares of Automatic Data Processing in a research report on Tuesday, December 16th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a research note on Monday, December 29th. Cantor Fitzgerald began coverage on shares of Automatic Data Processing in a research report on Tuesday. They set an “overweight” rating and a $306.00 target price for the company. Finally, JPMorgan Chase & Co. reduced their target price on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a report on Thursday, October 30th. Three research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Automatic Data Processing presently has an average rating of “Hold” and a consensus price target of $306.38.

Insider Activity at Automatic Data Processing

In other Automatic Data Processing news, VP David Kwon sold 806 shares of the company’s stock in a transaction that occurred on Monday, January 12th. The shares were sold at an average price of $264.80, for a total value of $213,428.80. Following the completion of the transaction, the vice president directly owned 11,187 shares in the company, valued at $2,962,317.60. This represents a 6.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Christopher D’ambrosio sold 543 shares of the firm’s stock in a transaction on Tuesday, January 13th. The shares were sold at an average price of $262.29, for a total transaction of $142,423.47. Following the sale, the vice president owned 9,998 shares in the company, valued at $2,622,375.42. The trade was a 5.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 2,249 shares of company stock valued at $589,852 over the last three months. 0.20% of the stock is currently owned by insiders.

Trending Headlines about Automatic Data Processing

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Q2 beat and outlook lift: ADP posted Q2 EPS of $2.62 (above estimates) and revenue of $5.36B (+6.2% y/y), and updated FY‑2026 EPS guidance to a range that implies continued earnings growth—an immediate catalyst for investor optimism. PR Newswire: Q2 Results
• Positive Sentiment: Buyback and management tone: Management used the earnings call to highlight an upbeat outlook and the company’s sizable buyback program, which supports EPS and signals capital-return priority. This was emphasized in post‑earnings coverage. TipRanks: Earnings Call Highlights
• Positive Sentiment: Analyst initiation: Cantor Fitzgerald initiated coverage with an “overweight” rating and $306 price target (~22% above the prior close), adding buy-side attention and potential demand for the shares. AmericanBankingNews: Cantor Fitzgerald Initiates Coverage
• Positive Sentiment: AI product launch: ADP announced new ADP Assist AI agents aimed at reducing HR/payroll friction—this reinforces the company’s product-led growth story and could support long‑term revenue/retention. PR Newswire: ADP AI Agents
• Neutral Sentiment: Short‑interest data appears inconsistent: Recent short‑interest entries show zero shares / NaN changes, suggesting the reported figures are likely erroneous or not meaningful—no actionable signal from short data yet.
• Neutral Sentiment: Macro signal from client hiring: Some reports note weak client headcount trends (slower hiring), which pressures ADP’s per‑employee revenue but is partially offset by product mix and pricing. This is a mixed driver for near‑term revenue. MarketBeat: Buyback + Hiring Notes
• Negative Sentiment: Valuation and macro headwinds concern some analysts: Commentary argues ADP remains relatively expensive given potential payroll weakness and macro risk—this could cap multiple expansion even after the quarter’s beat. Seeking Alpha: Valuation Concerns

Institutional Investors Weigh In On Automatic Data Processing

A number of institutional investors and hedge funds have recently bought and sold shares of ADP. Advisory Services Network LLC grew its position in shares of Automatic Data Processing by 36.3% during the third quarter. Advisory Services Network LLC now owns 10,696 shares of the business services provider’s stock worth $3,139,000 after purchasing an additional 2,850 shares in the last quarter. San Luis Wealth Advisors LLC lifted its holdings in Automatic Data Processing by 39.0% in the 3rd quarter. San Luis Wealth Advisors LLC now owns 1,173 shares of the business services provider’s stock worth $344,000 after purchasing an additional 329 shares in the last quarter. KDT Advisors LLC boosted its stake in Automatic Data Processing by 23.1% in the 3rd quarter. KDT Advisors LLC now owns 2,679 shares of the business services provider’s stock worth $786,000 after purchasing an additional 502 shares during the period. Financial Engines Advisors L.L.C. grew its holdings in Automatic Data Processing by 4.0% during the 3rd quarter. Financial Engines Advisors L.L.C. now owns 15,633 shares of the business services provider’s stock valued at $4,588,000 after buying an additional 600 shares in the last quarter. Finally, OmniStar Financial Group Inc. raised its position in shares of Automatic Data Processing by 19.0% during the third quarter. OmniStar Financial Group Inc. now owns 9,535 shares of the business services provider’s stock valued at $2,799,000 after buying an additional 1,523 shares during the last quarter. 80.03% of the stock is owned by institutional investors.

About Automatic Data Processing

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP’s product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.