DailyIQ
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Sector:TechnologyAll sectors
Last updated 7 minutes ago

ADP·Automatic Data Processing, Inc.

$.
-. (-.%)
After Hours
High
$261.31
Open
$257.98
Market Cap
101.48B
52W High
$315.98
Low
$251.45
P. Close
$255.30
P/E
23.35
52W Low
$188.16
Fwd P/E
98.74
DailyIQ Est.
$251.56
Technical Score (1D)
95
BUY
News Sentiment
48
MIXED
ADP’s preliminary estimate for the four weeks ending June 27 shows private employers added 19,750 jobs per week, a modest uptick but the third consecutive week of slowing hiring momentum. The slight increase signals a continued, though decelerating, labor‑market expansion that could influence short‑term demand outlooks for payroll and HR services. Because ADP’s data is a leading indicator for the broader employment market, traders should watch the July 21 NER Pulse for any revisions that could shift expectations for the next 1–10 trading days. The data also aligns with the services sector’s recent job gains, suggesting that the payroll‑processing business remains in demand as firms maintain workforce levels. Analysts have raised ADP’s price target to $248 from $234, reflecting confidence in revenue growth and margin expansion, but the hold rating indicates that upside may already be priced in. The company is also expected to deliver a modest fiscal Q4 earnings beat and will issue 2027 guidance, which could provide further clarity on its long‑term trajectory. The upcoming earnings release will be a key watch item, as any deviation from forecasts could alter sector sentiment and valuation multiples. In addition, the ADP payroll data may temper expectations for future Fed rate hikes, as a robust services economy could support higher rates, so monitoring the S&P Global services index and IHS MISM reports will be useful. Overall, the combination of modest job growth, potential earnings beat, and guidance release creates a near‑term focus on ADP’s ability to sustain revenue momentum while the market digests the implications for monetary policy and payroll demand.
Earnings Summary
ADP is a global provider of cloud‑based human capital management solutions, operating primarily through its Employer Services and Professional Employer Organization (PEO) Services segments, positioning itself within the technology software‑application sector. The company’s cloud platforms, such as ADP Workforce Now and ADP Lyric HCM, serve small to large enterprises, while its TotalSource brand delivers co‑employment HR outsourcing. In the most recent quarters, ADP’s earnings trajectory has shown consistent upside: Q4 2024 EPS of $2.35 beat the $2.29548 estimate and revenue of $5.048 billion surpassed expectations; Q1 2025 EPS of $3.06 exceeded the $2.973 forecast and revenue rose to $5.553 billion, a 10.2% year‑over‑year increase; Q2 2025 EPS of $2.26 beat the $2.22652 estimate but revenue dipped to $5.127 billion, a 7.5% decline from Q1; Q3 2025 EPS of $2.49 outpaced the $2.44263 estimate and revenue edged up to $5.175 billion, a modest 0.9% gain; Q3 2026 EPS of $3.37 surpassed the $3.29555 estimate and revenue surged to $5.939 billion, a 14.4% jump versus Q3 2025. These results illustrate a pattern of EPS beats in every quarter reported, with revenue growth accelerating in the latest period after a brief slowdown. Historically, ADP has maintained a propitious YoY revenue trajectory, propelling from $5.048 billion in Q4 2024 to $5.939 billion in Q3 2026, while EPS has grown from $2.35 to $3.37, reflecting strong margin expansion. Recent news highlights a modest uptick in private employer hiring at 19,750 jobs per week, signaling a stabilizing labor market that supports payroll demand; analysts have raised ADP’s price target to $248–$260 and anticipate a modest fiscal Q4 earnings beat, underscoring confidence in revenue momentum and cloud‑based payroll expansion. Investors should watch the July 21 earnings release for Q4 2026, paying particular attention to guidance on revenue and margin trends, cost‑management commentary, and any updates on the labor‑market outlook that could influence short‑term demand for payroll services and broader monetary‑policy expectations.

EPS

EstBeatMiss
$2.05$2.43$2.80$3.17$3.54Q4'24Q1'25Q2'25Q3'25Q3'26Q4'25
QtrEstActual+/−
Q4'25$2.56 - -
Q3'26$3.30$3.37+2.3%
Q3'25$2.44$2.49+1.9%
Q2'25$2.23$2.26+1.5%
Q1'25$2.97$3.06+2.9%
Q4'24$2.30$2.35+2.4%

Revenue

EstBeatMiss
$4.9B$5.2B$5.5B$5.8B$6.1BQ4'24Q1'25Q2'25Q3'25Q3'26Q4'25
QtrEstActual+/−
Q4'25$5.3B - -
Q3'26$5.8B$5.9B+1.6%
Q3'25 - $5.2B -
Q2'25 - $5.1B -
Q1'25 - $5.6B -
Q4'24 - $5.0B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

ADP Stock Snapshot

ADP is currently trading at $255.26, giving Automatic Data Processing, Inc. a market cap of 101.48B and a P/E ratio of 23.4. Today's range spans $251.45–$261.31, with shares opening at $257.98 and moving down $0.04 (0.0%) from the prior close. DailyIQ's technical score sits at 95/100 (BUY) with a news sentiment reading of 48/100.

Over the past year ADP has traded between $188.16 and $315.98 - the current price is +35.7% off the 52-week low and -19.2% from the high. 23 analysts cover the stock with a Hold consensus and a mean 12-month target of $252.80 (range $190.00–$305.00), implying downside of -1.0%.

ADP carries a BUY signal on a 95/100 technical score, trades at $255.26 (in the middle of its 52-week range), and has neutral sentiment at 48/100. At 101.48B in Technology market cap (P/E: 23.4), the name has scale without the index-anchor inertia of mega-cap peers - which means when the bullish momentum runs, the percentage move can be meaningfully larger. Annual range: $188.16–$315.98.

Earnings revision cycles in large-cap Technology names tend to compound: when technicals confirm a BUY thesis (95/100) and news sentiment (48/100, neutral) supports the narrative, analyst upgrades follow price rather than lead it. At $255.26 (in the middle of its 52-week range), ADP's position within the $188.16–$315.98 annual range suggests there's room for multiple expansion before the stock encounters meaningful technical resistance.