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

Automatic Data Processing (NASDAQ:ADP) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 10.091-11.011 for the period, compared to the consensus earnings per share estimate of 10.920. The company issued revenue guidance of $21.8 billion-$21.8 billion, compared to the consensus revenue estimate of $21.8 billion.

Automatic Data Processing Price Performance

NASDAQ ADP opened at $254.51 on Wednesday. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.62. The company has a market cap of $102.94 billion, a PE ratio of 25.12 and a beta of 0.86. Automatic Data Processing has a 52 week low of $247.18 and a 52 week high of $329.93. The firm’s 50-day simple moving average is $258.54 and its two-hundred day simple moving average is $278.75.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings results on Wednesday, January 28th. The business services provider reported $2.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.58 by $0.04. The company had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.34 billion. Automatic Data Processing had a net margin of 19.79% and a return on equity of 70.63%. Automatic Data Processing has set its FY 2026 guidance at 10.091-11.011 EPS. Research analysts predict that Automatic Data Processing will post 9.93 earnings per share for the current year.

Automatic Data Processing Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 13th will be issued a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Friday, March 13th. Automatic Data Processing’s dividend payout ratio (DPR) is presently 67.13%.

Automatic Data Processing declared that its Board of Directors has authorized a stock buyback plan on Wednesday, January 14th that authorizes the company to repurchase $6.00 billion in shares. This repurchase authorization authorizes the business services provider to repurchase up to 5.8% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Weiss Ratings reissued a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Cantor Fitzgerald started coverage on shares of Automatic Data Processing in a report on Tuesday. They issued an “overweight” rating and a $306.00 price target on the stock. Jefferies Financial Group reaffirmed an “underperform” rating and set a $230.00 price objective (down previously from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Wells Fargo & Company lowered their target price on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a research note on Thursday, October 30th. Finally, JPMorgan Chase & Co. cut their price target on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating for the company in a report on Thursday, October 30th. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $306.38.

Insiders Place Their Bets

In other news, VP David Kwon sold 900 shares of the firm’s stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $260.00, for a total transaction of $234,000.00. Following the sale, the vice president owned 11,993 shares in the company, valued at approximately $3,118,180. This trade represents a 6.98% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Christopher D’ambrosio sold 543 shares of the company’s stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the transaction, the vice president owned 9,998 shares of the company’s stock, valued at $2,622,375.42. This trade represents a 5.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 2,249 shares of company stock worth $589,852 in the last three months. Insiders own 0.20% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Brighton Jones LLC boosted its position in Automatic Data Processing by 92.1% during the fourth quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock valued at $2,935,000 after buying an additional 4,808 shares during the period. Bison Wealth LLC grew its position in Automatic Data Processing by 22.8% during the 4th quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock worth $1,073,000 after acquiring an additional 681 shares during the last quarter. Schnieders Capital Management LLC. grew its position in Automatic Data Processing by 21.8% during the 2nd quarter. Schnieders Capital Management LLC. now owns 1,259 shares of the business services provider’s stock worth $388,000 after acquiring an additional 225 shares during the last quarter. Osterweis Capital Management Inc. purchased a new position in Automatic Data Processing in the 2nd quarter worth approximately $108,000. Finally, Diversify Advisory Services LLC lifted its position in Automatic Data Processing by 17.5% in the second quarter. Diversify Advisory Services LLC now owns 5,477 shares of the business services provider’s stock valued at $1,641,000 after purchasing an additional 815 shares during the last quarter. 80.03% of the stock is currently owned by institutional investors.

About Automatic Data Processing

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.