ADP rozšiřuje strategické partnerství s AWS, které má urychlit AI inovace v HR a mzdové agendě pro více než 1,1 milionu klientů ve 140 zemích a teritoriích. Spolupráce už zkrátila některé kritické kroky o více než 50 %.
Expanded strategic partnership combines ADP's 77 years of HR, payroll, and compliance expertise with AWS cloud and AI capabilities to help ADP clients navigate the growing complexity of workforce management in the AI era.
, /PRNewswire/ -- Amazon Web Services (AWS), an Amazon.com company, and ADP, a global leader in HR and payroll solutions, today announced an expanded, strategic partnership. The partnership affirms AWS as ADP's strategic cloud provider, enabling its continued AI transformation and ongoing innovation of generative and agentic AI solutions for its more than 1.1 million clients across 140 countries and territories.
"ADP is setting the standard for how AI can transform human capital management at global scale," said Scott Liska, vice president at AWS. "By combining ADP's deep expertise in payroll and HR with AWS's comprehensive AI and cloud capabilities, this partnership gives companies a smarter and more efficient way to manage their people and orchestrate work across the employee lifecycle."
"AI is transforming how work gets done, but it also increases the complexity of managing a global workforce. Organizations need trusted partners that can combine advanced AI with deep domain expertise," said Sreeni Kutam, president of global product and innovation at ADP. "Through our partnership with AWS, we're delivering faster, more intelligent innovation that helps our clients make high-stakes workforce decisions with greater confidence. By combining AI innovation with human expertise, we are creating meaningful outcomes for employees, managers, HR professionals, and payroll practitioners."
The expanded partnership helps organizations navigate increasing HCM complexity with confidence. The partnership builds on years of collaboration between the two companies, including ADP's recent work with the AWS Generative AI Innovation Center, a global team of strategists and scientists that helps companies design, build, and launch generative and agentic AI solutions.
Key focus areas for collaboration across the two companies include:
A cloud foundation for scalable AI innovation: ADP is executing a strategic platform transformation initiative on AWS. For example, by implementing agentic services like AWS Transform and AWS Kiro, ADP used AI to accelerate the manual effort of bringing thousands of key applications to the cloud, such as tax and payroll systems. With its workflows on AWS, ADP can now more rapidly deploy new AI capabilities and scale services to meet client demand, all while maintaining enterprise-grade security and compliance standards across geographies. ADP Assist agents: Built on AWS with Amazon Bedrock, ADP Assist is an intelligent assistant that helps HR professionals automate tedious processes, identify and correct payroll anomalies, find answers to complex questions, and generate instant reports. ADP Assist agents, built with Amazon Bedrock AgentCore, serve as purpose-built agents for employees, managers, and HR and payroll practitioners that think, plan, and take action under human oversight. ADP Lyric HCM: AWS cloud and AI technology powers ADP's award-winning Lyric HCM platform. With ADP Assist integrated, Lyric unifies global HR, payroll, talent, and workforce management, providing enterprise organizations with customizable workflows, real-time analytics for decision making, and personalized employee experiences. Through collaboration with AWS, ADP implemented a generative AI-driven client onboarding process that reduced certain critical steps by greater than 50%. Global Data Platform: ADP leverages AWS to optimize the industry's largest workforce dataset into an intelligence foundation that powers AI HCM capabilities, including ADP Assist and its AI agents that work across ADP's solutions. This global data platform on AWS represents an unmatched industry dataset informed by 77 years of data and expertise spanning 42 million wage earners worldwide, providing the architecture for more personalized experiences for clients at scale, with security, privacy, and compliance embedded from the ground up. About AWS
Amazon Web Services (AWS) is guided by customer obsession, pace of innovation, commitment to operational excellence, and long-term thinking. By democratizing technology for nearly two decades and making cloud computing and generative AI accessible to organizations of every size and industry, AWS has built one of the fastest-growing enterprise technology businesses in history. Millions of customers trust AWS to accelerate innovation, transform their businesses, and shape the future. With the most comprehensive AI capabilities and global infrastructure footprint, AWS empowers builders to turn big ideas into reality. Learn more at aws.amazon.com and follow @AWSNewsroom.
About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises — and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com.
Key Takeaways ADP stock has gained 26.4% in six months, while FY27 revenues are estimated to rise 6%.ADP's FY26 ES bookings topped $2.2B, retention hit 92.1% and AI helped lift ES margins 60 bps.ADP returned $2.63B in dividends and bought back $2.08B in FY26 despite PEO margin risks. ADP (ADP - Free Report) stock has risen 26.4% over the past six months, beating the industry and the Zacks S&P 500 Composite's returns of 11.3% and 13.8%, respectively.
6-Month Share Price Performance Image Source: Zacks Investment Research
TheZacks Consensus Estimate for ADP’s fiscal 2027 revenues is set at $23.3 billion, implying 6% year-over-year growth. For fiscal 2028, the consensus estimate is $24.6 billion, suggesting a 5.6% uptick from the preceding year’s actual.
For EPS, the consensus mark for fiscal 2027 is pegged at $12.26, indicating 10.3% year-over-year growth. The Zacks Consensus Estimate for fiscal 2028 EPS is pegged at $13.4, suggesting 9.3% growth.
Factors That Augur Well for ADP’s SuccessSolid Bookings & High Retention: ADP’s new Employer Services (ES) bookings for fiscal 2026 exceeded $2.2 billion, marking 6% year-over-year growth. The company ended the fourth quarter of fiscal 2026 on a stronger note, supported by the Small Business portfolio, Employer Services HR outsourcing, and the enterprise and international businesses. Contributions from Lyric, the WorkForce Suite and global payroll offerings acted as vital driving forces, supported by high seller productivity achieved through AI-driven tools like The Zone.
ES retention came in strong at 92.1% for fiscal 2026, beating the company’s expectations and touching the guidance roof. AI investments improved accuracy, directly supporting client retention. High ES bookings, supported by a solid retention rate, create a strong revenue pipeline, limiting churn.
AI-Fueled Margin Expansion: During the fourth-quarter fiscal 2026 earnings release, CFO Peter Hadley mentioned that the company is pleased with the productivity gains realized following the AI implementation in service tools and product innovation. The operational productivity gained through these investments was one of the cornerstones in driving a year-over-year expansion of 60 basis points (bps) in ES margins for fiscal 2026. We expect margins to expand as AI continues to raise ADP’s operational prowess, which is in line with management expecting an adjusted EBIT margin expansion of 70-90 bps for fiscal 2027.
Shareholder-Friendly Actions: ADP has maintained a consistent record of returning capital to shareholders through dividends and repurchases. In fiscal 2024, the company paid out dividends of $2.18 billion, which rose to $2.4 billion and $2.63 billion in fiscal 2025 and fiscal 2026, respectively. The company also repurchased $2.08 billion in shares in fiscal 2026. These distributions were supported by $5.4 billion in operating cash flow, reinforcing the durability of its capital-return capacity. Such actions not only attract income-seeking investors but also raise investors’ morale by enhancing the bottom line.
Risks Faced by ADPBleak Employment Growth Limits Revenues: In fiscal 2026, U.S. pay per control increased 1%. Management anticipates the growth rate to be flat to 1% for fiscal 2027. We expect these modest employment-growth expectations to limit the upside in employee-linked revenues, mainly in mid-market and enterprise ES.
PEO Margin Weakness: ADP’s PEO margins dipped 100 bps in the fourth quarter of fiscal 2026 due to faster growth in zero-margin pass-through revenues and higher workers’ compensation and selling expenses. Management expects PEO margins to contract further in fiscal 2027, with zero-margin pass-throughs rising faster than overall PEO revenues. Therefore, continued PEO margin pressure could offset margin gains partially elsewhere in the business.
Expected Retention Drag: For fiscal 2027, management expects a 10-30-bps drag in ES retention from its unchanged 92.1% in fiscal 2026. Management’s expectation is grounded in assuming a small pullback in retention based on the near-record levels that the company operates at across its business and potential out-of-business rates to increase in the down market. If retention falls as expected, then it could affect the revenue pipeline created by the company’s solid bookings.
ADP’s Zacks Rank & Stocks to ConsiderThe company currently has a Zacks Rank of #3 (Hold).
Some better-ranked stocks from the broader Zacks Computer and Technology sector are Arista Networks (ANET - Free Report) and Amkor Technology (AMKR - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has a long-term earnings growth expectation of 22.7%. ANET delivered a trailing four-quarter earnings surprise of 8.9%, on average.
Amkor Technology has a long-term earnings growth expectation of 31.2%. AMKR delivered a trailing four-quarter earnings surprise of 43.6%, on average.
, /PRNewswire/ -- Private-sector employment increased by 38,000 jobs in August, according to the ADP National Employment Report® produced by ADP Research in collaboration with the Stanford Digital Economy Lab ("Stanford Lab").
For all private-sector workers in the United States, base pay rose 3.2% and gross pay was up 4.7% year over year, according to ADP Pay Insights.
ADP Pay Insights now offers deeper analytics, expanded geographic data reporting across 56 metropolitan areas and an interactive website platform to compare various datasets. Key enhancements to the monthly report include base pay growth and gross pay growth across geography, worker mobility, demographics, sector, employer size, and pay quartile.
ADP Research Base pay for job-stayers rose 3.0% year-over-year; base pay for job-changers increased 4.7%.
Gross pay for job-stayers rose 4.4% year-over year; gross pay for job-changers increased 7.3%.
Beginning with today's release of the August 2026 data, ADP Pay Insights offers deeper analytics, expanded geographic data, and an interactive data platform. Key enhancements to the monthly report include tracking of the year-over-year change in base pay drawn from contracted pay rates in addition to the reported change in gross pay. Gross pay is drawn from base pay plus bonuses, commissions, tips, and other earnings. ADP Pay Insights also now reports pay trends for all workers, job-stayers and job-changers combined.
Data on base and gross pay is available for 56 U.S. metropolitan areas. Base and gross pay data also is available by worker mobility, demographics, sector, employer size, and pay quartile.
Base and gross pay each are valuable indicators of labor-market conditions. Base pay changes tend to be long-lasting, and any change in this structural metric can send a signal on labor-market tightness or inflationary pressure.
Gross pay measures total compensation generated by labor-market activity, data that can be used to assess income growth and consumer spending power. Changes in gross pay can tell us how employers are responding to atypical economic conditions.
The ADP National Employment Report is an independent measure of the labor market based on the anonymized weekly payroll data of more than 26 million private-sector employees in the United States. ADP Pay Insights uses payroll transaction data to compare the wage growth of individual workers over 12-month intervals, resulting in more than 14.7 million year-over-year pay-change observations each month.
Together, these reports use ADP's finely-grained data to provide a representative and high-frequency picture of the private-sector labor market.
"Pay can tell us a lot about today's choppy hiring. To understand hiring patterns, you have to look deeply into where pay growth is accelerating, where it's slowing, and for whom," said Dr. Nela Richardson, chief economist, ADP.
"Once predictable wage growth has been overtaken by complexities of demographic change, persistent inflation, and AI's effects on jobs," Richardson said. "Our new Pay Insights report, with its enhanced data, can more fully reveal the dynamics of today's labor market."
August 2026 Report Highlights
View the ADP National Employment Report and interactive charts at http://www.adpemploymentreport.com/.
EMPLOYMENT REPORT
Private employers added 38,000 jobs in August
Private employers posted their slowest pace of job creation since January. Manufacturing, professional services, and information shed jobs. Education and health care, construction, and leisure and hospitality all showed solid hiring.
Change in U.S. Private Employment: 38,000
Change by Sector
- Goods-producing: -10,000
Natural resources and mining -5,000 Construction 12,000 Manufacturing -17,000 - Service-providing: 48,000
Trade, transportation, and utilities -5,000 Information -4,000 Financial activities 6,000 Professional and business services -16,000 Education and health services 45,000 Leisure and hospitality 16,000 Other services 6,000 Change by U.S. Regions
- Northeast: 38,000
New England 12,000 Mid-Atlantic 26,000 - Midwest: 5,000
East North Central -15,000 West North Central 20,000 - South: 3,000
South Atlantic 14,000 East South Central -2,000 West South Central -9,000 - West: -8,000
Mountain -3,000 Pacific -5,000 Change by Establishment Size
- Small establishments: 3,000
1-19 employees 20,000 20-49 employees -17,000 - Medium establishments: 0
50-249 employees 2,000 250-499 employees -2,000 - Large establishments: 34,000
500+ employees 34,000 PAY INSIGHTS
ADP Pay Insights provides base pay growth and gross pay growth data across worker mobility, demographics, sector, employer size, pay quartile, and 56 U.S. metropolitan areas. The report also now offers pay growth distribution. Drawn from ADP's industry-leading workforce dataset, ADP Pay Insights uses payroll transaction data to provide a view on the wage dynamics of more than 14.7 million matched workers over a 12-month period.
"With its extended history, added dimensions of base pay and distribution, and granular metro information, Pay Insights more fully captures the pay structure of the U.S. labor market and how it's changing over time," said Liv Wang, lead data scientist, ADP Research.
"Our August release, for example, shows that pay growth has been decelerating for the past four years," Wang said. "Among lower-paid workers in particular, base pay growth has lost momentum and now is slower than it was prior to the pandemic."
Base pay growth slowed slightly in August
Pay growth for job-stayers was unchanged at 3 percent, while pay growth for job-changers edged down.
Gross pay growth slowed slightly in August
Pay growth for job-stayers was unchanged at 4.4 percent, while pay growth for job-changers slowed from 7.5 percent to 7.3 percent.
Visit our interactive platform for more information.
Median Change in Base Pay
All workers 3.2% Job-stayers 3.0% Job-changers 4.7% Median Change in Gross Pay
All workers 4.7% Job-stayers 4.4% Job-changers 7.3% Median Change in Base Pay by Sector
- Goods-producing:
Natural resources and mining 3.3% Construction 4.0% Manufacturing 3.5% - Service-providing:
Trade, transportation, and utilities 3.3% Information 3.1% Financial activities 3.5% Professional and business services 3.2% Education and health services 3.0% Leisure and hospitality 2.9% Other services 3.0% Median Change in Base Pay by Firm Size
- Medium firms:
50-249 employees 3.5% 250-499 employees 3.3% - Large firms:
500+ employees 3.2% To see Pay Insights by U.S. Metro, Gender, Age, and Pay Quartile, please visit https://payinsights.adp.com/.
The July total number of jobs added was revised from 44,000 to 46,000.
For additional information about the ADP National Employment Report, including historical files, employment and pay data, methodology, and a calendar of release dates, please visit https://adpemploymentreport.com/.
The September 2026 ADP National Employment Report will be released on September 30, 2026 at 8:15 a.m. ET.
About ADP Research
The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policy makers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.
To subscribe to monthly email alerts or obtain additional information about ADP Research, including employment and pay data, methodology, and a calendar of release dates, please visit https://www.adpresearch.com.
About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com
ADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research are registered trademarks of ADP, Inc. All other marks are the property of their respective owners.
ADP ve 4. fiskálním čtvrtletí překonal odhady: upravený zisk na akcii činil 2,64 USD a tržby 5,47 miliardy USD. Pro fiskální rok 2027 čeká růst konsolidovaných tržeb o 5–6 %.
A month has gone by since the last earnings report for Automatic Data Processing (ADP - Free Report) . Shares have added about 7.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is ADP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
ADP's Q4 Earnings Beat EstimatesADP has reported fourth-quarter fiscal 2026 adjusted earnings of $2.64 per share, beating the Zacks Consensus Estimate of $2.59 by 1.9%. The metric increased 17% from the year-ago quarter.
Revenues of $5.47 billion surpassed the consensus mark of $5.42 billion by 0.9% and rose 7% year over year. Results benefited from broad-based segment growth, stronger client funds income and operating productivity. Employer Services client retention remained strong at 92.1% for the year.
ADP Posts Broad-Based Revenue GrowthEmployer Services revenues increased 7% year over year to $3.7 billion in the quarter. Organic constant-currency growth was 6%, while U.S. pays per control increased 1%.
The segment also benefited from an 8% increase in average client funds balances. The average yield on those balances rose to 3.5% from 3.2% in the prior-year period, supporting higher interest-related revenues.
Automatic Data Processing Expands Employer MarginEmployer Services’ margin improved 90 basis points to 34.4%. Management attributed the increase to operating productivity gains and the contribution from higher client funds interest revenues.
For fiscal 2026, Employer Services business bookings increased 6% to $2.2 billion. Client satisfaction scores reached record highs, while the number of clients live on ADP Lyric HCM increased 94%.
ADP's PEO Revenues Rise as Margin ContractsPEO Services revenues advanced 7% year over year to $1.78 billion. Revenues excluding zero-margin benefits pass-throughs increased 5%, while average worksite employees rose 2% to about 775,000.
The segment margin fell 100 basis points to 12.2%. Faster growth in zero-margin pass-through revenues, along with higher workers' compensation and selling expenses, weighed on profitability.
Automatic Data Processing Lifts Adjusted ProfitAdjusted EBIT increased 13% year over year to $1.37 billion. The adjusted EBIT margin expanded 140 basis points to 25.1%, showing that ADP converted its revenue growth into stronger operating leverage.
Adjusted net earnings rose 14% to $1.05 billion. On a GAAP basis, net earnings increased 7% to $978.6 million, while earnings per share rose 10% to $2.45.
ADP Sees Stronger Client Funds ContributionInterest on funds held for clients increased 15% year over year to $355.4 million. The net impact from the client funds strategy rose 24% to $355.5 million, reflecting higher portfolio income and a more favorable financing spread.
For fiscal 2026, average client funds balances were $40.4 billion, up 7% year over year. The average portfolio yield increased 20 basis points to 3.4%, while total client funds interest revenues reached $1.355 billion.
Automatic Data Processing Generates Solid Cash FlowADP generated $5.44 billion in operating cash flow during fiscal 2026, up from $4.94 billion a year earlier. The company used $2.08 billion for share repurchases and paid out $2.63 billion in dividends.
Cash and cash equivalents totaled $4.23 billion as of June 30, 2026. Long-term debt stood at $4.96 billion, while funds held for clients were $43.96 billion against client funds obligations of $44.42 billion.
Automatic Data Processing Targets Higher Fund IncomeADP expects client funds interest revenues of $1.54-$1.56 billion in fiscal 2027. The outlook assumes 3-4% growth in average client funds balances and an average portfolio yield of 3.7%.
The company also projects a total contribution of $1.55-$1.57 billion from its client funds extended investment strategy. Management said that AI tools embedded across products, services and sales are enhancing quality and productivity as ADP enters the new fiscal year.
ADP Issues FY27 Growth OutlookFor fiscal 2027, ADP expects year-over-year consolidated revenue growth of 5-6%. The adjusted EBIT margin is projected to expand 70-90 basis points, while adjusted diluted earnings per share are expected to grow 9-11%.
Employer Services revenues are forecast to rise 5-6%, with business booking growth of 4-7%. PEO Services revenues are expected to increase 5-7%, while average worksite employees are projected to grow 2%.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresCurrently, ADP has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ADP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerADP is part of the Zacks Internet - Software industry. Over the past month, AppFolio (APPF - Free Report) , a stock from the same industry, has gained 31.8%. The company reported its results for the quarter ended June 2026 more than a month ago.
AppFolio reported revenues of $281.12 million in the last reported quarter, representing a year-over-year change of +19.3%. EPS of $1.71 for the same period compares with $1.38 a year ago.
AppFolio is expected to post earnings of $1.78 per share for the current quarter, representing a year-over-year change of +35.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.5%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for AppFolio. Also, the stock has a VGM Score of C.
Beacon Pointe Advisors koupila novou pozici v Automatic Data Processing za zhruba 16,7 milionu USD. ADP ve čtvrtletí oznámila EPS 2,64 USD a tržby 5,47 miliardy USD, obojí nad odhady.
Beacon Pointe Advisors LLC purchased a new position in shares of Automatic Data Processing, Inc. (NASDAQ:ADP – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 74,583 shares of the business services provider’s stock, valued at approximately $16,703,000.
A number of other hedge funds have also bought and sold shares of the company. Imprint Wealth LLC acquired a new position in shares of Automatic Data Processing in the 3rd quarter worth approximately $25,000. Cornerstone Financial Management LLC bought a new stake in shares of Automatic Data Processing in the 4th quarter valued at approximately $26,000. Bard Associates Inc. acquired a new stake in shares of Automatic Data Processing during the 4th quarter valued at approximately $28,000. Whipplewood Advisors LLC raised its position in shares of Automatic Data Processing by 2,740.0% during the 1st quarter. Whipplewood Advisors LLC now owns 142 shares of the business services provider’s stock valued at $29,000 after acquiring an additional 137 shares in the last quarter. Finally, Prosperity Bancshares Inc bought a new position in Automatic Data Processing during the fourth quarter worth $33,000. 80.03% of the stock is currently owned by institutional investors and hedge funds.
Automatic Data Processing Stock Performance ADP opened at $287.48 on Friday. The business has a 50 day moving average price of $256.03 and a two-hundred day moving average price of $227.97. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.05 and a quick ratio of 1.05. The company has a market capitalization of $114.20 billion, a price-to-earnings ratio of 26.28 and a beta of 0.81. Automatic Data Processing, Inc. has a 1-year low of $188.16 and a 1-year high of $305.31.
Automatic Data Processing (NASDAQ:ADP – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The company had revenue of $5.47 billion for the quarter, compared to analysts’ expectations of $5.44 billion. During the same period last year, the firm earned $2.26 EPS. The firm’s revenue for the quarter was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Research analysts predict that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year. Automatic Data Processing Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be issued a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing’s payout ratio is presently 62.16%.
Wall Street Analyst Weigh In A number of equities analysts have commented on the stock. Cantor Fitzgerald lifted their price objective on shares of Automatic Data Processing from $295.00 to $310.00 and gave the stock an “overweight” rating in a report on Monday, August 3rd. Wells Fargo & Company increased their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. Morgan Stanley raised their price target on shares of Automatic Data Processing from $240.00 to $286.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 30th. Guggenheim boosted their price objective on shares of Automatic Data Processing from $270.00 to $300.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Finally, UBS Group increased their price objective on shares of Automatic Data Processing from $260.00 to $270.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 22nd. Three research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $273.50.
View Our Latest Stock Report on Automatic Data Processing
Insider Transactions at Automatic Data Processing In other news, VP Brian L. Michaud sold 120 shares of the firm’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $279.70, for a total transaction of $33,564.00. Following the completion of the transaction, the vice president owned 18,442 shares in the company, valued at approximately $5,158,227.40. This trade represents a 0.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP David Kwon sold 2,414 shares of Automatic Data Processing stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total transaction of $641,206.68. Following the completion of the transaction, the vice president directly owned 9,660 shares in the company, valued at $2,565,889.20. This represents a 19.99% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 3,332 shares of company stock worth $898,211. 0.20% of the stock is owned by corporate insiders.
(Free Report)
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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Aberdeen Wealth Management ve 2. čtvrtletí koupila nový podíl ve společnosti Automatic Data Processing za zhruba 1,944 milionu USD. Fond získal 8 679 akcií ADP.
Aberdeen Wealth Management LLC acquired a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP – Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 8,679 shares of the business services provider’s stock, valued at approximately $1,944,000. Automatic Data Processing makes up 0.9% of Aberdeen Wealth Management LLC’s portfolio, making the stock its 19th largest position.
Several other institutional investors and hedge funds also recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in shares of Automatic Data Processing during the second quarter worth $8,097,229,000. Deutsche Bank AG bought a new stake in Automatic Data Processing in the 2nd quarter valued at $994,937,000. Northwestern Mutual Wealth Management Co. increased its holdings in Automatic Data Processing by 6,493.0% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock valued at $892,120,000 after acquiring an additional 3,415,576 shares during the last quarter. Bank of New York Mellon Corp purchased a new stake in Automatic Data Processing in the 2nd quarter worth $725,513,000. Finally, Cardano Risk Management B.V. lifted its stake in Automatic Data Processing by 950.1% in the 4th quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider’s stock worth $916,557,000 after purchasing an additional 3,223,855 shares in the last quarter. Institutional investors own 80.03% of the company’s stock.
Analyst Ratings Changes ADP has been the subject of a number of research analyst reports. Morgan Stanley raised their price objective on Automatic Data Processing from $240.00 to $286.00 and gave the company an “equal weight” rating in a research report on Thursday, July 30th. Weiss Ratings raised Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, July 21st. Stifel Nicolaus raised their price target on Automatic Data Processing from $260.00 to $285.00 and gave the company a “hold” rating in a report on Thursday, July 30th. Cantor Fitzgerald lifted their price objective on Automatic Data Processing from $295.00 to $310.00 and gave the stock an “overweight” rating in a research note on Monday, August 3rd. Finally, Mizuho decreased their price objective on Automatic Data Processing from $332.00 to $305.00 in a report on Thursday, April 30th. Three analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Automatic Data Processing presently has an average rating of “Hold” and an average target price of $273.50.
Read Our Latest Stock Analysis on ADP Insiders Place Their Bets In other news, VP David Kwon sold 798 shares of the stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $280.00, for a total value of $223,440.00. Following the sale, the vice president owned 13,193 shares of the company’s stock, valued at approximately $3,694,040. This represents a 5.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Brian L. Michaud sold 120 shares of Automatic Data Processing stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $279.70, for a total transaction of $33,564.00. Following the transaction, the vice president directly owned 18,442 shares of the company’s stock, valued at approximately $5,158,227.40. This represents a 0.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 3,332 shares of company stock valued at $898,211. 0.20% of the stock is owned by corporate insiders.
Automatic Data Processing Stock Up 0.8% Shares of NASDAQ ADP opened at $283.01 on Tuesday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $307.80. The firm’s 50-day moving average price is $250.86 and its 200-day moving average price is $226.50. The stock has a market capitalization of $112.43 billion, a price-to-earnings ratio of 25.87 and a beta of 0.81.
Automatic Data Processing (NASDAQ:ADP – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.59 by $0.05. The business had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The company’s quarterly revenue was up 6.8% compared to the same quarter last year. During the same period in the prior year, the business posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities research analysts anticipate that Automatic Data Processing, Inc. will post 12.26 EPS for the current fiscal year.
Automatic Data Processing Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 11th will be given a $1.70 dividend. The ex-dividend date is Friday, September 11th. This represents a $6.80 dividend on an annualized basis and a yield of 2.4%. Automatic Data Processing’s dividend payout ratio (DPR) is currently 62.16%.
(Free Report)
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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Biondo Investment Advisors ve 2. čtvrtletí koupila nový podíl v Automatic Data Processing za zhruba 9,751 milionu USD. Společnost zároveň oznámila EPS 2,64 USD a tržby 5,47 miliardy USD.
Biondo Investment Advisors LLC purchased a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 43,540 shares of the business services provider’s stock, valued at approximately $9,751,000.
Several other hedge funds and other institutional investors also recently modified their holdings of the stock. BlackRock Inc. bought a new position in Automatic Data Processing during the 2nd quarter worth $8,097,229,000. Deutsche Bank AG acquired a new position in shares of Automatic Data Processing during the second quarter valued at approximately $994,937,000. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Automatic Data Processing by 6,493.0% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,468,180 shares of the business services provider’s stock valued at $892,120,000 after buying an additional 3,415,576 shares during the period. Bank of New York Mellon Corp bought a new position in shares of Automatic Data Processing during the 2nd quarter valued at about $725,513,000. Finally, Cardano Risk Management B.V. boosted its holdings in Automatic Data Processing by 950.1% during the fourth quarter. Cardano Risk Management B.V. now owns 3,563,180 shares of the business services provider’s stock worth $916,557,000 after buying an additional 3,223,855 shares in the last quarter. Institutional investors own 80.03% of the company’s stock.
Automatic Data Processing Stock Performance Shares of NASDAQ ADP opened at $280.81 on Monday. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.82. The stock has a 50 day moving average of $249.66 and a 200-day moving average of $226.17. Automatic Data Processing, Inc. has a 12 month low of $188.16 and a 12 month high of $308.89. The company has a market capitalization of $111.56 billion, a P/E ratio of 25.67 and a beta of 0.81.
Automatic Data Processing (NASDAQ:ADP – Get Free Report) last posted its earnings results on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, beating the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The company had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. During the same quarter in the prior year, the business earned $2.26 earnings per share. The firm’s revenue for the quarter was up 6.8% on a year-over-year basis. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, equities research analysts predict that Automatic Data Processing, Inc. will post 12.26 EPS for the current year. Automatic Data Processing Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be paid a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, September 11th. Automatic Data Processing’s payout ratio is presently 62.16%.
Insiders Place Their Bets In other news, VP David Kwon sold 2,414 shares of the company’s stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the completion of the transaction, the vice president owned 9,660 shares of the company’s stock, valued at $2,565,889.20. This represents a 19.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.20% of the stock is owned by corporate insiders.
Wall Street Analyst Weigh In ADP has been the subject of several research analyst reports. Robert W. Baird reduced their price target on shares of Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday, April 30th. Mizuho reduced their target price on shares of Automatic Data Processing from $332.00 to $305.00 in a research note on Thursday, April 30th. UBS Group increased their price objective on Automatic Data Processing from $260.00 to $270.00 and gave the company a “neutral” rating in a report on Wednesday, July 22nd. Stifel Nicolaus upped their price target on shares of Automatic Data Processing from $260.00 to $285.00 and gave the company a “hold” rating in a report on Thursday, July 30th. Finally, Guggenheim increased their price objective on Automatic Data Processing from $270.00 to $300.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Automatic Data Processing presently has a consensus rating of “Hold” and a consensus target price of $273.50.
Get Our Latest Research Report on ADP
(Free Report)
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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Advisors Capital Management LLC purchased a new stake in Automatic Data Processing, Inc. (NASDAQ:ADP – Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund purchased 14,240 shares of the business services provider’s stock, valued at approximately $3,189,000.
A number of other hedge funds and other institutional investors also recently made changes to their positions in ADP. SBI Securities Co. Ltd. increased its holdings in shares of Automatic Data Processing by 2.4% in the fourth quarter. SBI Securities Co. Ltd. now owns 1,895 shares of the business services provider’s stock worth $488,000 after purchasing an additional 45 shares during the period. Nordwand Advisors LLC boosted its stake in Automatic Data Processing by 1.5% during the fourth quarter. Nordwand Advisors LLC now owns 3,205 shares of the business services provider’s stock valued at $824,000 after buying an additional 47 shares during the period. Cary Street Partners Investment Advisory LLC grew its position in Automatic Data Processing by 1.7% during the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 2,784 shares of the business services provider’s stock worth $716,000 after buying an additional 47 shares in the last quarter. Guardian Partners Inc. grew its position in Automatic Data Processing by 0.9% during the first quarter. Guardian Partners Inc. now owns 5,127 shares of the business services provider’s stock worth $1,044,000 after buying an additional 47 shares in the last quarter. Finally, Reston Wealth Management LLC increased its stake in Automatic Data Processing by 5.8% in the 4th quarter. Reston Wealth Management LLC now owns 892 shares of the business services provider’s stock worth $229,000 after acquiring an additional 49 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors.
Insider Transactions at Automatic Data Processing In other news, VP David Kwon sold 2,414 shares of the company’s stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $265.62, for a total value of $641,206.68. Following the completion of the transaction, the vice president owned 9,660 shares of the company’s stock, valued at $2,565,889.20. This represents a 19.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.20% of the company’s stock.
Automatic Data Processing Stock Up 0.6% NASDAQ:ADP opened at $280.81 on Friday. Automatic Data Processing, Inc. has a fifty-two week low of $188.16 and a fifty-two week high of $308.89. The firm has a 50-day simple moving average of $249.66 and a two-hundred day simple moving average of $226.31. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.05 and a current ratio of 1.05. The firm has a market cap of $111.55 billion, a P/E ratio of 25.67 and a beta of 0.81. Automatic Data Processing (NASDAQ:ADP – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 EPS for the quarter, topping the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a return on equity of 71.34% and a net margin of 20.11%.The company had revenue of $5.47 billion during the quarter, compared to analyst estimates of $5.44 billion. During the same quarter in the previous year, the company posted $2.26 earnings per share. Automatic Data Processing’s revenue was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Analysts predict that Automatic Data Processing, Inc. will post 12.26 earnings per share for the current fiscal year.
Automatic Data Processing Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 11th will be paid a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Friday, September 11th. Automatic Data Processing’s dividend payout ratio is presently 62.16%.
Analyst Ratings Changes A number of analysts have recently issued reports on the company. Cantor Fitzgerald lifted their price target on Automatic Data Processing from $295.00 to $310.00 and gave the company an “overweight” rating in a research report on Monday, August 3rd. Weiss Ratings upgraded shares of Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 21st. Wells Fargo & Company raised their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the company an “equal weight” rating in a research note on Thursday, July 30th. Robert W. Baird dropped their target price on shares of Automatic Data Processing from $300.00 to $270.00 in a research report on Thursday, April 30th. Finally, Stifel Nicolaus boosted their price target on shares of Automatic Data Processing from $260.00 to $285.00 and gave the stock a “hold” rating in a research note on Thursday, July 30th. Three investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $273.50.
Read Our Latest Report on Automatic Data Processing
(Free Report)
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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Key Takeaways ADP stock gained 13.4% in a month, outperforming the industry's 1.6% growth and S&P 500's 2.4%.ADP's Q4 adjusted EBIT rose 13% to $1.37B, while its margin expanded 140 basis points to 25.1% y/y.ADP ended fiscal 2026 with $4.2B in cash and paid $2.6B in dividends, supporting shareholder value. ADP (ADP - Free Report) stock has gained 13.4% in a month, outperforming the industry’s 1.6% growth and the Zacks S&P 500 Composite's 2.4% return.
1-Month Share Price Performance
Image Source: Zacks Investment Research
Let us delve deeper into the factors that have contributed to the company’s outperformance.
ADP’s Innovation Initiatives Attract InvestorsADP continues to accelerate its DataCloud penetration and increase investments in inside sales, mid-market migrations and service alignment initiatives through its ongoing transformation initiatives. These initiatives enabled the company to innovate, improve operations, expand margins and enhance its operational capabilities. The results are visible as ADP reported that its adjusted EBIT increased 13% year over year to $1.37 billion in the fourth quarter of 2026. The adjusted EBIT margin expanded 140 basis points to 25.1% in the same time frame, while adjusted net earnings rose 14% y/y to $1.05 billion, reflecting ADP’s successful conversion of revenue growth into stronger operating leverage and expanded profitability. Such results boost shareholder confidence in the company's profit growth.
ADP’s Cash Profile Bolsters LiquidityThe company had a cash balance of $4.2 billion at the end of the fourth quarter of fiscal 2026 against a total long-term debt of just $4.9 billion. The figure is substantially lower than the operating cash flow of $5.4 billion for the same period, indicating sufficient cash flow to pay off its debt. This solid cash position provides ADP with sufficient flexibility to pursue growth opportunities without straining its short-term debt position.
Moreover, ADP had a current ratio of 1.05 during the same time frame. Though the figure is lower than the industry benchmark of 1.93, a metric above 1 indicates greater efficiency to meet short-term obligations, which bolsters investor morale.
Consistent Dividend PayoutIn fiscal 2023, 2024, 2025 and 2026, the company distributed $1.6 billion, $1.7 billion, $1.9 billion and $2.6 billion in dividends, respectively. Such moves reflect ADP’s dedication to enhancing shareholder value. This also underlines its confidence in the business's long-term potential and makes the stock appear highly attractive for income-seeking investors.
ADP’s Zacks Rank & Stocks to ConsiderADP currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices, Inc. (ADI - Free Report) and Applied Materials, Inc. (AMAT - Free Report) .
Analog Devices carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 31%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ADI delivered a trailing four-quarter earnings surprise of 4.8%, on average.
Applied Materials also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 36.7%.
AMAT beat earnings estimates in each of the trailing four quarters, with an average earnings surprise of 5.5%.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- The board of directors of Automatic Data Processing, Inc. (Nasdaq: ADP) has declared a regular quarterly dividend of $1.70 per share payable October 1, 2026 to shareholders of record on September 11, 2026.
About ADP (Nasdaq: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll.
ADP, the ADP logo, and Always Designing for People are trademarks of ADP, Inc.
ADP ve 4. čtvrtletí překonal odhady zisku i tržeb, když tržby vzrostly o 7 % a příjem z klientských fondů stoupl o 15 % na 355,4 mil. USD. Pro fiskální 2027 čeká růst EPS o 9 % až 11 %.
Key Takeaways ADP topped fourth-quarter earnings and revenue estimates as sales rose 7% year over year.Client funds interest climbed 15% to $355.4 million as balances and portfolio yields increased.ADP sees fiscal 2027 EPS up 9%-11%, while PEO margin pressure remains a key challenge. ADP (ADP - Free Report) closed fiscal 2026 with fourth-quarter earnings and revenues above expectations, supported by higher client funds income, broad-based segment growth and productivity gains.
The fiscal 2027 outlook points to another year of revenue growth, margin expansion and faster adjusted earnings growth. The key issue is whether client funds income and operating leverage can outweigh continued pressure in the Professional Employer Organization business.
ADP’s Quarter Beat ExpectationsAdjusted earnings of $2.64 per share topped the Zacks Consensus Estimate by 1.9%. Revenues of $5.47 billion exceeded the consensus mark by 0.9% and increased 7% year over year.
Adjusted earnings before interest and taxes rose 13% to $1.37 billion, while the adjusted margin expanded 140 basis points to 25.1%. Higher client funds income and operational productivity helped earnings grow faster than revenues. Employer Services also posted 7% revenue growth and a 90-basis-point margin increase.
Client Funds Income Lifts ADP’s ResultsInterest on funds held for clients increased 15% to $355.4 million. Average client funds balances rose 8% to $41 billion, while the average portfolio yield improved to 3.5% from 3.2% a year earlier.
The net contribution from the client funds extended investment strategy increased 24%. Higher balances, improved yields and a favorable financing spread made this activity a larger earnings contributor, adding support beyond ADP’s core payroll and human capital management operations.
ADP’s FY27 Guidance Signals More GrowthManagement expects consolidated revenues to increase 5% to 6% in fiscal 2027. Adjusted earnings per share are projected to rise 9% to 11%, with adjusted earnings before interest and taxes margin expanding another 70 to 90 basis points.
Client funds remain a measurable part of that outlook. ADP forecasts $1.54 billion to $1.56 billion in client funds interest revenue, based on 3% to 4% balance growth and an average yield of about 3.7%. The company also expects Employer Services revenues to grow 5% to 6%.
PEO Margin Pressure Tempers ADP’s StrengthProfessional Employer Organization Services revenues grew 7%, but the segment margin declined 100 basis points to 12.2%. Revenues excluding zero-margin benefits pass-throughs increased 5%, showing that the headline growth rate included activity that did not add margin.
Workers’ compensation costs and selling expenses also weighed on profitability. That pressure matters because Paychex, Inc. (PAYX - Free Report) also combines payroll, human resources and professional employer organization services, while Paycom Software, Inc. (PAYC - Free Report) competes through cloud-based payroll and human capital management software. ADP’s ability to convert segment growth into profit remains an important differentiator.
What ADP’s Ratings Say After EarningsThe quarter and outlook support a constructive operating view, but ADP currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The rating indicates that the near-term earnings estimate picture does not provide a clear enough signal for a more positive stance.
The Momentum Score of B is encouraging and suggests favorable recent trading characteristics. However, the Value Score of C, Growth Score of C and VGM Score of D point to a less compelling combined profile. The mix supports a measured interpretation despite the earnings beat and fiscal 2027 growth outlook.
ADP za čtvrtletí do června 2026 zvýšila výnosy na 5,47 miliardy USD a EPS na 2,64 USD, obojí nad odhady. Segment Employer Services vzrostl meziročně o 6,7 % na 3,7 miliardy USD.
For the quarter ended June 2026, Automatic Data Processing (ADP - Free Report) reported revenue of $5.47 billion, up 6.8% over the same period last year. EPS came in at $2.64, compared to $2.26 in the year-ago quarter.
The reported revenue represents a surprise of +0.87% over the Zacks Consensus Estimate of $5.43 billion. With the consensus EPS estimate being $2.59, the EPS surprise was +1.93%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Segment revenues- Employer Services: $3.7 billion versus the three-analyst average estimate of $3.67 billion. The reported number represents a year-over-year change of +6.7%.Revenues- Interest on funds held for clients: $355.4 million versus $340.62 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +15.5% change.Revenues- PEO revenues: $1.78 billion versus $1.78 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.9% change.Segment revenues- PEO Services: $1.78 billion versus $1.76 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.9% change.Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $3.34 billion compared to the $3.33 billion average estimate based on two analysts. The reported number represents a change of +5.8% year over year.View all Key Company Metrics for ADP here>>>
Shares of ADP have returned +18% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
, /PRNewswire/ -- ADP (Nasdaq: ADP), a global leader in HR and payroll solutions, today announced its fourth quarter and fiscal 2026 financial results along with its fiscal 2027 outlook through an earnings release available on the company's website at investors.adp.com/events-and-presentations. This earnings release will also be furnished to the Securities and Exchange Commission (SEC) on a Current Report on Form 8-K and available at sec.gov.
As previously announced, ADP will host a conference call for financial analysts today, Wednesday, July 29, 2026 at 8:30 a.m. ET. The conference call will be webcast live on ADP's website at investors.adp.com and will be available for replay following the call. A slide presentation accompanying the webcast is also available at investors.adp.com/events-and-presentations.
About ADP (Nasdaq: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com
ADP, the ADP logo, and Always Designing for People are trademarks of ADP, Inc.
Key Takeaways ADP stock gained 23% in three months, beating the industry and broader market.Wider EBIT margins helped ADP turn revenue growth into stronger earnings gains.ADP paid $1.9 billion in dividends and ended the quarter with $3.2 billion in cash. ADP (ADP - Free Report) stock has rallied over the past three months. The company’s shares have surged 23%, outperforming the industry’s 1.4% growth and the Zacks S&P 500 Composite's 4.5% appreciation.
3-Month Share Price Performance Image Source: Zacks Investment Research
Let us delve into the factors that have contributed to the company’s outperformance.
Strong Margins Anchor ProfitabilityADP’s top line moved up 3.6% sequentially during the second quarter of fiscal 2026, which then increased exponentially by 10.8% during the third quarter of fiscal 2026. This top-line momentum was accompanied by 7.7% and 28.6% sequential growth in adjusted EBIT in the second and third quarters of fiscal 2026, respectively.
A disproportionate growth between revenues and adjusted EBIT is a clear indication of heightened operational efficiency, as evidenced by a 50 basis points (bps) and 420 bps expansion in adjusted EBIT margins during the aforementioned quarters.
These strong margins translated into significant improvement in net earnings, resulting in impressive bottom-line growth. During the second quarter of fiscal 2026, net earnings increased 4.8% sequentially, resulting in a 5.2% upsurge in the bottom line.
Although similar, the momentum achieved during the third quarter of fiscal 2026 was aggressive, as net earnings spiked 28% sequentially, pushing the bottom line up by 29%. This performance is a testament to ADP’s ability to convert incremental revenue gains into high-margin bottom-line growth, fortifying investor morale in the scalability of its operations.
Dividends Attract Income-Seeking InvestorsADP has a consistent track record of dividend payments. The company paid $1.9 billion, $2.2 billion and $2.4 billion in dividends during fiscal 2023, 2024 and 2025, respectively. During the nine months ended as of March 31, 2026, ADP paid $1.9 billion in dividends, a substantial rise from the year-ago period’s $1.8 billion. Such moves, despite turbulent cash flow, indicate the company’s commitment to returning value to shareholders and underline its confidence in the business.
Solid Balance Sheet Bolsters LiquidityADP’s balance sheet reveals that it holds a cash chest of $3.2 billion as of the end of the third quarter of fiscal 2026 compared with no current debt, strengthening its liquidity. It is further justified by a current ratio of 1.04 during the third quarter of fiscal 2026 that improved marginally from the year-ago quarter. While the metric stands lower than the industry average of 1.9, being above 1 bodes well with investors, signaling efficiency in covering short-term obligations.
Zacks Rank & Stocks to ConsiderADP currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Amphenol Corporation (APH - Free Report) and MKS Inc. (MKSI - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphenol Corporation has a long-term earnings growth expectation of 24%. Amphenol Corporation delivered a trailing four-quarter earnings surprise of 14.1%, on average.
MKS has a long-term earnings growth expectation of 29.9%. MKS delivered a trailing four-quarter earnings surprise of 7.5%, on average.
ADP očekává ve fiskálním roce 2026 růst upravené EBIT marže o 70–80 bps a růst EPS o 10–11 %. AI nástroje zároveň zkrátily čas potřebný na payroll i počet kliknutí u HR úkonů.
Key Takeaways ADP's AI tools saved payroll time, cut HR action clicks, and lowered call volumes and labor in India.ADP expects a 70-80 bps adjusted EBIT margin expansion in fiscal 2026, with EPS growth of 10-11%.ADP has strong liquidity, regular dividends and no current debt, but PEO margins and volume remain pressured. Shares of ADP (ADP - Free Report) have gained 16.4% over the past three months, beating the industry’s 6.8% rally and the Zacks S&P 500 Composite's 14.7% rise.
3-Month Share Price Performance Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 revenue is $21.9 billion, suggesting 6.6% year-over-year growth. For 2027, the same is expected to increase 5.9%. For EPS, the consensus estimate is set at $11.08, indicating a 10.7% rally from that reported in the preceding year. The same is expected to move up 10% year over year in 2027.
Factors That Augur Well for ADP’s SuccessAI Unlocks Operational Prowess: ADP Assist Payroll, which is an AI-powered HR and payroll assistant, saved 30 minutes per payroll. Smart Actions search led to a reduction in clicks and time expenditure by nearly 80% for common HR actions. The company witnessed a dip in cost to serve and an improvement in clients’ experience from productivity gains facilitated by AI incorporated in service tools and product innovation.
For instance, ADP’s RUN platform and AI-powered tools deployed to benefit more than 900,000 small business clients resulted in an 8% year-over-year decline in client contracts during the third quarter of fiscal 2026, the busiest quarter. First-time deployment of AI in India allowed ADP to reduce call volumes and labor by 35%.
Pricing Power Drives Margins: In the third quarter of fiscal 2026, ADP stated an expected 70-80 basis point (bps) expansion in its adjusted EBIT margin for fiscal 2026. It is bolstered by a 130-bps expansion in Employer Services (ES) margins reported in the third quarter of fiscal 2026.
With margins gaining momentum, ADP’s earnings moved up to $3.38 per share from the year-ago quarter’s $3.06. Capitalizing on this enhancement, management expects adjusted diluted EPS growth to be 10-11% for fiscal 2026. These metrics paint an attractive profile highlighting its ability to scale profitability.
Ideal for Income-Seeking Investors: ADP pays out dividends regularly, with $1.9 billion, $2.2 billion and $2.4 billion paid out to its shareholders in fiscal 2023, 2024 and 2025, respectively. Furthermore, the company raised its quarterly payout to $1.7 per share at the end of 2025 and kept it consistent for the first, second and third quarters of fiscal 2026.
This is a shareholder-friendly move, capitalizing on steady income growth and cash flow over the past years. Betting on this bullish trajectory, we expect the company to pay out stable dividends, which is a green flag for dividend-seeking investors.
Solid Balance Sheet Drives Liquidity: ADP ended the third quarter of fiscal 2026 with a cash chest of $3.2 billion against no current debt. A current ratio of 1.04 solidifies ADP’s ability to pay off short-term obligations, signaling a strong liquidity position. While the company holds nearly $4 billion in long-term debt, a 13.5X times interest earned multiple flaunts robust debt coverage ability, fueling investor optimism.
Risks Faced by ADPPEO Segment’s Margin Setback: The PEO segment gained 6.5% year over year in revenues during the third quarter of fiscal 2026, representing 32% of the top line. Despite this improvement, segmental margins declined by 120 basis points from the year-ago quarter. While the primary factor affecting margins was increasing selling expenses, the drag was furthered by higher state unemployment insurance costs and lower positive reserve releases in workers’ compensation reserves for indemnity.
Softening Volume: Low baseline volume growth is demonstrated by the rally in ES pays per control stalling at 1%. This weak expansion is affected by softening of PEO pays per control, which strips away high-margin revenue streams, affecting PEO margins. It hints at a structural shift in ADP’s growth story, which unveils that the expansion is no longer accelerated by additions of organic headcount or raw workforce volume.
High Competition Faced Across Segments: ADP operates in a fiercely competitive environment in each of its product lines. Both its Employer Services and PEO Services segments compete with other independent business outsourcing companies in most of their operating regions. ADP has observed negative impacts on its retention rate due to the rising competition and migration from the legacy business.
ADP’s Zacks Rank & Stocks to ConsiderThe company has a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader Zacks Computer and Technology sector are BILL Holdings (BILL - Free Report) and Datadog (DDOG - Free Report) , currently flaunting a Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy), respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
BILL Holdings has a long-term earnings growth expectation of 30%. BILL delivered a trailing four-quarter earnings surprise of 21.7%, on average.
Datadog has a long-term earnings growth expectation of 15.3%. DDOG delivered a trailing four-quarter earnings surprise of 15.4%, on average.
