Automatic Data Processing (NASDAQ:ADP) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Automatic Data Processing (NASDAQ:ADP) reported earnings of $2.26 per share, exceeding analyst expectations of $2.23 by $0.03, with revenues reaching $5.13 billion.
• The company updated its FY 2026 guidance for earnings per share to a range of $10.811-$11.011, indicating confidence in future performance.
• Following the earnings announcement, ADP's stock increased by 0.7%, trading at $310.94, with analysts maintaining a mix of ratings, leading to an average target price of $309.62.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) posted its earnings results on Wednesday. The business services provider reported $2.26 EPS for the quarter, topping the consensus estimate of $2.23 by $0.03, Zacks reports. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The firm had revenue of $5.13 billion during the quarter, compared to analysts' expectations of $5.05 billion. During the same quarter in the prior year, the firm earned $2.09 EPS. Automatic Data Processing's quarterly revenue was up 6.3% on a year-over-year basis. Automatic Data Processing updated its FY 2026 guidance to 10.811-11.011 EPS.

Automatic Data Processing Stock Down 2.9%

ADP traded down $9.06 during trading on Friday, reaching $300.44. The company had a trading volume of 1,791,558 shares, compared to its average volume of 1,385,865. The business's fifty day moving average price is $310.28 and its 200 day moving average price is $305.18. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.05 and a quick ratio of 1.02. The company has a market cap of $121.95 billion, a P/E ratio of 30.10, a PEG ratio of 2.84 and a beta of 0.81. Automatic Data Processing has a 12 month low of $256.47 and a 12 month high of $329.93.

Institutional Trading of Automatic Data Processing

A hedge fund recently raised its stake in Automatic Data Processing stock. Brighton Jones LLC boosted its position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 92.1% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 10,026 shares of the business services provider's stock after acquiring an additional 4,808 shares during the quarter. Brighton Jones LLC's holdings in Automatic Data Processing were worth $2,935,000 at the end of the most recent reporting period. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

ADP has been the subject of a number of research analyst reports. Stifel Nicolaus upped their price target on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research note on Thursday. Mizuho upped their price target on shares of Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research note on Friday, June 13th. TD Securities increased their target price on shares of Automatic Data Processing from $298.00 to $321.00 and gave the company a "hold" rating in a research note on Wednesday, May 21st. Morgan Stanley increased their target price on shares of Automatic Data Processing from $310.00 to $311.00 and gave the company an "equal weight" rating in a research note on Thursday. Finally, UBS Group cut their target price on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a research note on Friday, June 13th. One research analyst has rated the stock with a sell rating, ten have given a hold rating and two have assigned a buy rating to the stock. According to MarketBeat, Automatic Data Processing presently has a consensus rating of "Hold" and a consensus target price of $314.33.

About Automatic Data Processing

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.