Zacks Research Has Negative Outlook for ADP Q4 Earnings

Automatic Data Processing, Inc. (NASDAQ:ADP) – Equities research analysts at Zacks Research lowered their Q4 2025 EPS estimates for Automatic Data Processing in a report released on Wednesday, May 21st. Zacks Research analyst R. Department now anticipates that the business services provider will earn $2.22 per share for the quarter, down from their previous forecast of $2.28. 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 2026 earnings at $2.47 EPS, Q3 2026 earnings at $3.14 EPS, Q4 2026 earnings at $2.63 EPS, Q2 2027 earnings at $2.93 EPS and Q3 2027 earnings at $3.22 EPS.

Automatic Data Processing (NASDAQ:ADP) last released its quarterly earnings results on Wednesday, April 30th. The business services provider reported $3.06 EPS for the quarter, beating the consensus estimate of $2.97 by $0.09. The firm had revenue of $5.55 billion during the quarter, compared to the consensus estimate of $5.49 billion. Automatic Data Processing had a net margin of 19.76% and a return on equity of 80.86%. Automatic Data Processing’s revenue for the quarter was up 5.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.88 EPS.

Other equities research analysts have also issued research reports about the company. StockNews.com lowered Automatic Data Processing from a “buy” rating to a “hold” rating in a report on Wednesday, February 5th. Jefferies Financial Group boosted their target price on shares of Automatic Data Processing from $290.00 to $305.00 and gave the stock a “hold” rating in a research report on Thursday, January 30th. TD Securities upped their price target on shares of Automatic Data Processing from $298.00 to $321.00 and gave the stock a “hold” rating in a research note on Wednesday. UBS Group raised their price objective on shares of Automatic Data Processing from $318.00 to $324.00 and gave the company a “neutral” rating in a research note on Tuesday, March 4th. Finally, Barclays boosted their price objective on shares of Automatic Data Processing from $325.00 to $350.00 and gave the stock an “overweight” rating in a report on Monday, February 3rd. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat, Automatic Data Processing has a consensus rating of “Hold” and a consensus target price of $305.64.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $322.63 on Thursday. The stock has a fifty day moving average price of $300.13 and a 200 day moving average price of $300.69. Automatic Data Processing has a 1-year low of $231.27 and a 1-year high of $323.66. The company has a debt-to-equity ratio of 0.59, a current ratio of 1.00 and a quick ratio of 1.00. The company has a market cap of $130.96 billion, a PE ratio of 33.64, a P/E/G ratio of 3.62 and a beta of 0.76.

Automatic Data Processing Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 1st. Shareholders of record on Friday, June 13th will be given a $1.54 dividend. The ex-dividend date of this dividend is Friday, June 13th. This represents a $6.16 dividend on an annualized basis and a yield of 1.91%. Automatic Data Processing’s dividend payout ratio (DPR) is 63.05%.

Insider Buying and Selling at Automatic Data Processing

In other news, VP Christopher D’ambrosio sold 473 shares of Automatic Data Processing stock in a transaction that occurred on Monday, March 10th. The shares were sold at an average price of $306.20, for a total value of $144,832.60. Following the transaction, the vice president now owns 7,244 shares of the company’s stock, valued at $2,218,112.80. The trade was a 6.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, VP Brian L. Michaud sold 1,500 shares of the business’s stock in a transaction that occurred on Tuesday, April 1st. The stock was sold at an average price of $305.38, for a total transaction of $458,070.00. Following the completion of the sale, the vice president now owns 12,073 shares in the company, valued at $3,686,852.74. The trade was a 11.05% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 2,451 shares of company stock valued at $743,024. 0.21% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Automatic Data Processing

Institutional investors and hedge funds have recently modified their holdings of the stock. Geneos Wealth Management Inc. raised its position in shares of Automatic Data Processing by 5.0% during the first quarter. Geneos Wealth Management Inc. now owns 12,034 shares of the business services provider’s stock worth $3,677,000 after purchasing an additional 574 shares during the period. Focus Partners Wealth increased its stake in Automatic Data Processing by 3.8% in the 1st quarter. Focus Partners Wealth now owns 123,682 shares of the business services provider’s stock worth $37,765,000 after purchasing an additional 4,529 shares in the last quarter. Integrity Alliance LLC. purchased a new position in Automatic Data Processing in the 1st quarter worth about $762,000. Ransom Advisory Ltd acquired a new stake in Automatic Data Processing during the 1st quarter worth about $625,000. Finally, Anchor Investment Management LLC lifted its stake in Automatic Data Processing by 0.3% during the first quarter. Anchor Investment Management LLC now owns 15,400 shares of the business services provider’s stock valued at $4,705,000 after buying an additional 46 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company’s stock.

Automatic Data Processing Company Profile

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.