Zacks Research Issues Pessimistic Outlook for ADP Earnings

Key Points

• Zacks Research has revised its Q1 2026 earnings estimate for Automatic Data Processing (ADP) down to $2.44 per share, from a previous estimate of $2.47.
• The company's last quarterly earnings report showed a net margin of 19.84% and a revenue of $5.13 billion, exceeding analyst expectations.
• ADP's stock has received mixed ratings, with ten analysts giving a "Hold" rating and a consensus price target of $317.00.

Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) - Analysts at Zacks Research cut their Q1 2026 earnings estimates for shares of Automatic Data Processing in a research report issued on Wednesday, August 20th. Zacks Research analyst Team now anticipates that the business services provider will post earnings per share of $2.44 for the quarter, down from their prior estimate of $2.47. 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 Q1 2027 earnings at $2.59 EPS and Q4 2027 earnings at $3.04 EPS.

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 EPS for the quarter, topping the consensus estimate of $2.23 by $0.03. The company had revenue of $5.13 billion during 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 firm's revenue was up 6.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.09 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS.

Several other equities research analysts have also commented on the stock. UBS Group cut their price target on shares of Automatic Data Processing from $323.00 to $315.00 and set a "neutral" rating for the company in a report on Friday, June 13th. Stifel Nicolaus boosted their price target on shares of Automatic Data Processing from $305.00 to $318.00 and gave the stock a "hold" rating in a report on Thursday, July 31st. Mizuho boosted their price target on Automatic Data Processing from $321.00 to $332.00 and gave the stock an "outperform" rating in a research report on Friday, June 13th. Morgan Stanley boosted their price target on Automatic Data Processing from $310.00 to $311.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 31st. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and set a $315.00 price target on shares of Automatic Data Processing in a research report on Thursday, June 5th. Two equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $317.00.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $307.95 on Monday. The firm has a market cap of $124.73 billion, a PE ratio of 30.86, a PEG ratio of 2.82 and a beta of 0.81. The firm has a fifty day moving average of $305.10 and a 200 day moving average of $305.61. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.05 and a current ratio of 1.05. Automatic Data Processing has a one year low of $267.79 and a one year high of $329.93.

Automatic Data Processing Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 12th will be issued a $1.54 dividend. This represents a $6.16 annualized dividend and a yield of 2.0%. The ex-dividend date is Friday, September 12th. Automatic Data Processing's dividend payout ratio is presently 61.72%.

Institutional Trading of Automatic Data Processing

Several large investors have recently added to or reduced their stakes in the stock. Jacobsen Capital Management grew its holdings in Automatic Data Processing by 3.8% in the 2nd quarter. Jacobsen Capital Management now owns 907 shares of the business services provider's stock valued at $280,000 after buying an additional 33 shares in the last quarter. Signature Wealth Management Group grew its holdings in Automatic Data Processing by 2.3% in the 2nd quarter. Signature Wealth Management Group now owns 1,450 shares of the business services provider's stock valued at $447,000 after buying an additional 33 shares in the last quarter. Bangor Savings Bank grew its holdings in Automatic Data Processing by 0.7% in the 2nd quarter. Bangor Savings Bank now owns 4,907 shares of the business services provider's stock valued at $1,513,000 after buying an additional 34 shares in the last quarter. Ameritas Advisory Services LLC grew its holdings in Automatic Data Processing by 2.1% in the 2nd quarter. Ameritas Advisory Services LLC now owns 1,629 shares of the business services provider's stock valued at $502,000 after buying an additional 34 shares in the last quarter. Finally, PGIM Custom Harvest LLC grew its holdings in Automatic Data Processing by 4.9% in the 2nd quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider's stock valued at $223,000 after buying an additional 34 shares in the last quarter. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

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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