Zacks Research Has Bullish Estimate for ADP Q2 Earnings

Key Points

• Zacks Research has raised its Q2 2026 earnings per share estimate for Automatic Data Processing to $2.61, up from the previous estimate of $2.57.
• Multiple investment analysts have increased their price targets for ADP, with the current average target at $317.00 and an overall rating of "Hold".
• Automatic Data Processing has declared a quarterly dividend of $1.54 per share, reflecting an annualized dividend yield of 2.0%.

Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) - Equities research analysts at Zacks Research upped their Q2 2026 earnings per share (EPS) estimates for Automatic Data Processing in a research note issued on Wednesday, August 20th. Zacks Research analyst Team now expects that the business services provider will earn $2.61 per share for the quarter, up from their previous estimate of $2.57. The consensus estimate for Automatic Data Processing's current full-year earnings is $9.93 per share. Zacks Research also issued estimates for Automatic Data Processing's Q3 2026 earnings at $3.24 EPS, Q4 2026 earnings at $2.61 EPS, FY2026 earnings at $10.90 EPS, Q2 2027 earnings at $2.97 EPS, Q3 2027 earnings at $3.23 EPS, FY2027 earnings at $11.83 EPS and FY2028 earnings at $13.03 EPS.

Other research analysts have also recently issued research reports about the company. Morgan Stanley increased their price objective on Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 31st. TD Securities increased their price objective on Automatic Data Processing from $298.00 to $321.00 and gave the stock a "hold" rating in a research note on Wednesday, May 21st. Mizuho increased their price objective on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research note on Friday, June 13th. Stifel Nicolaus increased their price objective on Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a research note on Thursday, July 31st. Finally, Dbs Bank raised Automatic Data Processing to a "hold" rating in a research note on Thursday. Two investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $317.00.

Automatic Data Processing Stock Down 1.3%

Shares of NASDAQ:ADP opened at $304.94 on Friday. Automatic Data Processing has a 52-week low of $267.25 and a 52-week high of $329.93. The stock has a market cap of $123.51 billion, a P/E ratio of 30.56, a price-to-earnings-growth ratio of 2.83 and a beta of 0.81. The business's 50 day moving average is $305.08 and its 200 day moving average is $305.63. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.64.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The business services provider reported $2.26 earnings per share for the quarter, topping the consensus estimate of $2.23 by $0.03. Automatic Data Processing had a return on equity of 72.84% and a net margin of 19.84%.The firm had revenue of $5.13 billion for the quarter, compared to the consensus estimate of $5.05 billion. During the same period in the prior year, the business posted $2.09 earnings per share. The company's revenue for the quarter was up 6.3% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS.

Automatic Data Processing Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Friday, September 12th will be given a dividend of $1.54 per share. The ex-dividend date of this dividend is Friday, September 12th. This represents a $6.16 dividend on an annualized basis and a dividend yield of 2.0%. Automatic Data Processing's dividend payout ratio is presently 61.72%.

Hedge Funds Weigh In On Automatic Data Processing

A number of large investors have recently made changes to their positions in the business. Activest Wealth Management lifted its holdings in shares of Automatic Data Processing by 2,600.0% during the first quarter. Activest Wealth Management now owns 81 shares of the business services provider's stock worth $25,000 after purchasing an additional 78 shares during the period. Mid American Wealth Advisory Group Inc. purchased a new stake in Automatic Data Processing in the second quarter valued at $26,000. Harbor Asset Planning Inc. purchased a new stake in Automatic Data Processing in the second quarter valued at $26,000. Howard Hughes Medical Institute purchased a new stake in Automatic Data Processing in the second quarter valued at $27,000. Finally, Solstein Capital LLC purchased a new stake in Automatic Data Processing in the second quarter valued at $28,000. 80.03% of the stock is 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.

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