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

Key Points

• Automatic Data Processing (ADP) updated its FY 2026 earnings guidance, forecasting an EPS of 10.811-11.011 and revenue guidance of 21.589-21.795 billion, slightly above consensus estimates.
• ADP's recent earnings report showed an EPS of $3.06, beating expectations, with a net margin of 19.79% and a year-over-year revenue increase of 5.7%.
• Institutional investors hold 80.03% of ADP's stock, with notable recent activity from Brighton Jones LLC, which increased its stake by 92.1%.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) updated its FY 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 10.811-11.011 for the period, compared to the consensus earnings per share estimate of 10.886. The company issued revenue guidance of 21.589-21.795, compared to the consensus revenue estimate of $21.6 billion.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on ADP. Stifel Nicolaus lifted their price objective on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a "hold" rating in a report on Thursday. UBS Group cut their price objective on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating on the stock in a report on Friday, June 13th. Mizuho lifted their price objective on shares of Automatic Data Processing from $321.00 to $332.00 and gave the company an "outperform" rating in a report on Friday, June 13th. BMO Capital Markets raised shares of Automatic Data Processing to a "hold" rating and set a $340.00 price objective on the stock in a report on Thursday, July 10th. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $315.00 price target on shares of Automatic Data Processing in a report on Thursday, June 5th. One investment analyst has rated the stock with a sell rating, eleven have given a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat.com, Automatic Data Processing has an average rating of "Hold" and a consensus target price of $310.69.

Automatic Data Processing Stock Performance

Shares of ADP traded down $7.13 during trading hours on Friday, reaching $302.37. 294,491 shares of the company traded hands, compared to its average volume of 1,750,709. The stock has a market capitalization of $122.74 billion, a P/E ratio of 30.19, a P/E/G ratio of 2.85 and a beta of 0.76. The company has a quick ratio of 1.02, a current ratio of 1.05 and a debt-to-equity ratio of 0.64. Automatic Data Processing has a 12-month low of $256.47 and a 12-month high of $329.93. The business has a fifty day moving average price of $310.70 and a 200-day moving average price of $305.12.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, beating analysts' consensus estimates of $2.23 by $0.03. The firm had revenue of $5.13 billion for the quarter, compared to analyst estimates of $5.05 billion. Automatic Data Processing had a net margin of 19.84% and a return on equity of 72.84%. The business's quarterly revenue was up 6.3% compared to the same quarter last year. During the same period in the previous year, the company earned $2.09 earnings per share. Equities analysts anticipate that Automatic Data Processing will post 9.93 EPS for the current fiscal year.

Institutional Investors Weigh In On Automatic Data Processing

A hedge fund recently raised its stake in Automatic Data Processing stock. Bison Wealth LLC boosted its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 22.8% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 3,664 shares of the business services provider's stock after purchasing an additional 681 shares during the period. Bison Wealth LLC's holdings in Automatic Data Processing were worth $1,073,000 as of its most recent filing with the Securities and Exchange Commission (SEC). 80.03% of the stock is currently owned by institutional investors and hedge funds.

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.