Automatic Data Processing, Inc.
Automatic Data Processing, Inc. (ADP) is a large-cap provider of payroll, human capital management (HCM), benefits administration and outsourcing services for businesses. It combines cloud-based software, data analytics and outsourcing to handle payroll processing, HR administration, tax filing and compliance. ADP’s revenue mix—subscription fees and services—tends to produce recurring cash flow, and its market capitalisation (about $115.0bn) reflects a broad client base and scale. Investors often watch ADP for steady revenue, margin improvement from technology investments, and a history of dividend payments, but past performance is not a guide to the future. Key risks include competition from cloud-native HR platforms, regulatory and tax complexity in multiple jurisdictions, and sensitivity to economic cycles that affect employment levels. This content is for educational purposes only and not personal financial advice; suitability depends on your circumstances and you should consult a professional before investing.
Why It's Moving
ADP Powers Ahead with Q2 Earnings Beat and AI-Driven Outlook Boost
- Launched ADP Assist AI agents for payroll, HR, analytics, and tax, leveraging global data to tackle real workforce issues and win new deals.
- Raised FY26 EPS guidance to $10.09-$11.01 above street expectations, ES revenue growth to 6%, and net investment impact by $10 million to $1.27-$1.29 billion.
- Board approved $6 billion share buyback while PEO revenue grew 6%, highlighting solid new business bookings and margin gains from operating leverage.
ADP Powers Ahead with Q2 Earnings Beat and AI-Driven Outlook Boost
- Launched ADP Assist AI agents for payroll, HR, analytics, and tax, leveraging global data to tackle real workforce issues and win new deals.
- Raised FY26 EPS guidance to $10.09-$11.01 above street expectations, ES revenue growth to 6%, and net investment impact by $10 million to $1.27-$1.29 billion.
- Board approved $6 billion share buyback while PEO revenue grew 6%, highlighting solid new business bookings and margin gains from operating leverage.
When is the next earnings date for Automatic Data Processing, Inc. (ADP)?
Automatic Data Processing (ADP) reported its Q2 fiscal 2026 earnings on January 28, 2026, covering the quarter ended December 2025. The next earnings release, for Q3 fiscal 2026 (period ending March 2026), is expected on or around April 29, 2026, aligning with historical patterns of late April or early May reporting. Analyst estimates place this approximately four weeks after the fiscal quarter end, though ADP has not yet officially confirmed the precise date.
Stock Performance Snapshot
Analyst Rating
Analysts suggest holding ADP's stock with a target price of $285, indicating potential growth.
Financial Health
Automatic Data Processing, Inc. is performing well with strong revenue and cash flow generation.
Dividend
Automatic Data Processing, Inc. has a dividend yield of 2.62%, which is reasonable for income-seeking investors. If you invested $1000 you would be paid $26.20 a year in dividends (based on the last 12 months).
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Explore BasketWhy You’ll Want to Watch This Stock
Recurring revenue model
Subscription and service fees provide steady cash flow and potential margin stability, though growth depends on client retention and pricing.
Global client base
Serving employers worldwide diversifies revenue but adds regulatory and tax complexity across jurisdictions, which can affect costs.
Tech and data focus
Investments in cloud platforms and analytics can enhance cross-sell and retention, though competition and execution risks remain.
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