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

Key Points

• Automatic Data Processing issued FY2026 EPS guidance of 11.010–11.110 (consensus 10.960) and revenue guidance of $21.8–22.0 billion, roughly in line with analyst expectations.
• ADP beat Q3 estimates with EPS of $3.37 versus $3.30 consensus, reported quarterly revenue up 7% year‑over‑year, and showed strong profitability (net margin ~19.96% and ROE 68.44%).
• The company declared a quarterly dividend of $1.70 (annualized $6.80, ~3.4% yield) and announced a $6 billion share repurchase program (about 5.8% of shares outstanding).

Automatic Data Processing (NASDAQ:ADP - Get Free Report) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided EPS guidance of 11.010-11.110 for the period, compared to the consensus EPS estimate of 10.960. The company issued revenue guidance of $21.8 billion-$22.0 billion, compared to the consensus revenue estimate of $21.8 billion.

Automatic Data Processing Trading Up 1.0%

NASDAQ:ADP opened at $199.17 on Wednesday. Automatic Data Processing has a 1-year low of $188.16 and a 1-year high of $329.93. The business's 50-day moving average price is $206.80 and its two-hundred day moving average price is $238.99. The firm has a market capitalization of $80.19 billion, a price-to-earnings ratio of 19.15 and a beta of 0.85. The company has a current ratio of 1.03, a quick ratio of 1.03 and a debt-to-equity ratio of 0.62.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.30 by $0.07. Automatic Data Processing had a return on equity of 68.44% and a net margin of 19.96%.During the same period in the prior year, the company earned $3.06 earnings per share. The firm's quarterly revenue was up 7.0% compared to the same quarter last year. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, equities analysts expect that Automatic Data Processing will post 10.96 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Friday, June 12th will be issued a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 3.4%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's dividend payout ratio is 65.38%.

Automatic Data Processing announced that its Board of Directors has initiated a stock repurchase program on Wednesday, January 14th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the business services provider to purchase up to 5.8% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Morgan Stanley decreased their price objective on Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a report on Tuesday. Stifel Nicolaus decreased their price objective on Automatic Data Processing from $280.00 to $270.00 and set a "hold" rating for the company in a report on Monday, February 9th. BMO Capital Markets decreased their price objective on Automatic Data Processing from $281.00 to $234.00 and set a "market perform" rating for the company in a report on Tuesday, April 7th. Guggenheim assumed coverage on Automatic Data Processing in a report on Thursday, March 19th. They set a "buy" rating and a $270.00 price objective for the company. Finally, Citigroup decreased their price objective on Automatic Data Processing from $303.00 to $265.00 and set a "neutral" rating for the company in a report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $265.69.

Insider Activity at Automatic Data Processing

In related news, VP David Foskett sold 266 shares of the stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $237.00, for a total transaction of $63,042.00. Following the completion of the transaction, the vice president directly owned 10,954 shares of the company's stock, valued at approximately $2,596,098. This represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Brian L. Michaud sold 1,000 shares of the stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $234.18, for a total value of $234,180.00. Following the transaction, the vice president directly owned 15,310 shares of the company's stock, valued at $3,585,295.80. This trade represents a 6.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 1,809 shares of company stock valued at $410,410. Insiders own 0.20% of the company's stock.

Key Automatic Data Processing News

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

• Positive Sentiment: Q3 beat and raised FY26 guidance — ADP beat Q3 EPS ($3.37 vs. $3.30), reported healthy margins/ROE, and nudged FY‑2026 EPS and revenue guidance slightly above/at consensus; this is the primary catalyst for the stock move. PR: ADP Reports Third Quarter Fiscal 2026 Results
• Positive Sentiment: Company commentary and press materials — management provided a revised outlook and supplemental materials (press release + slide deck) that investors can review for guidance detail and forward commentary. Press Release / Slide Deck
• Neutral Sentiment: Press coverage summarizes the beat and outlook lift — mainstream coverage underscores the positive takeaway but also notes macro uncertainties that could temper momentum. WSJ: ADP Lifts Outlook
• Neutral Sentiment: ADP National Employment Report update — the company’s NER pulse showed moderate private‑sector job gains, a data product that supports ADP’s market position but is not an immediate stock catalyst. ADP NER Preliminary Estimate
• Negative Sentiment: Analyst target cuts ahead of/after the print — Morgan Stanley trimmed its price target (311→274) and kept an equal‑weight rating, which can limit near‑term upside despite the beat. MarketScreener: Morgan Stanley target cut
• Negative Sentiment: Mixed analyst commentary — Cantor Fitzgerald and other outlets note macro risks and have lowered price targets or highlighted near‑term pressure, which could weigh on sentiment if growth concerns persist. InsiderMonkey: Cantor Fitzgerald view

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Imprint Wealth LLC acquired a new position in Automatic Data Processing during the third quarter valued at approximately $25,000. Prosperity Bancshares Inc acquired a new position in Automatic Data Processing during the fourth quarter valued at approximately $33,000. Wilkerson Advisory Group LLC acquired a new stake in shares of Automatic Data Processing in the fourth quarter valued at approximately $36,000. Wealth Watch Advisors INC acquired a new stake in shares of Automatic Data Processing in the third quarter valued at approximately $43,000. Finally, Kemnay Advisory Services Inc. acquired a new stake in shares of Automatic Data Processing in the fourth quarter valued at approximately $41,000. 80.03% of the stock is owned by institutional investors and hedge funds.

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.

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