ADP

Automatic Data Processing Inc

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Advanced Chart

293.660

+1.66(0.568%)1D

Overview
Forecast
Valuation
Earnings

Line

Candle

YTD

High

294.460

Open

289.460

VWAP

292.16

Vol

2.18M

Mkt Cap

118.94B

Low

288.535

Amount

636.80M

EV/EBITDA(TTM)

20.02

Total Shares

409.29M

119.84B

EV/OCF(TTM)

24.26

P/S(TTM)

5.84

Automatic Data Processing, Inc. (ADP) is a global technology company engaged in providing cloud-based human capital management (HCM) solutions that unite HR, payroll, talent, time, tax and benefits administration. Its segments include Employer Services and Professional Employer Organization (PEO). Its Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of technology-based HCM solutions, including its cloud-based platforms, and human resource outsourcing (HRO) solutions (other than PEO) solutions. Its offerings include Payroll Services, Benefits Administration, Talent Management, HR Management, Workforce Management, Compliance Services, Insurance Services and Retirement Services. Its PEO business, called ADP TotalSource, provides clients with employment administration outsourcing solutions. ADP serves over 1.1 million clients in 140 countries and territories.

Market Estimates

Earnings Estimates

Revenue

YoY Chg

EPS

YoYChg

FY2026Q3

FY2026Q2

FY2026Q1

5.84B

+5.21%

3.267

+6.77%

5.36B

+6.15%

2.596

+10.45%

5.14B

+6.33%

2.447

+5.01%

Estimates Revision

The market is revising Upward the revenue expectations for Automatic Data Processing, Inc. (ADP) for FY2026, with the revenue forecasts being adjusted by 0.52% over the past three months. During the same period, the stock price has changed by -5.34%.

Revenue Estimates for FY2026

Revise Upward

+0.52%

In Past 3 Month

EPS Estimates for FY2026

Revise Upward

+0.33%

In Past 3 Month

Stock Price

Go Down

-5.34%

In Past 3 Month

11 Analyst Rating

9.56% Upside

Wall Street analysts forecast ADP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ADP is 321.73 USD with a low forecast of 290.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

3 Buy

8 Hold

0 Sell

Moderate Buy

9.56% Upside

Current: 293.660

Low

290.00

Averages

321.73

High

350.00

9.56% Upside

Current: 293.660

Low

290.00

Averages

321.73

High

350.00

UBS

Neutral

downgrade

$315 -> $290

2025-09-16

Reason

UBS

Price Target

$315 -> $290

2025-09-16

downgrade

Neutral

Reason

UBS lowered the firm's price target on ADP to $290 from $315 and keeps a Neutral rating on the shares as part of a broader research note on human capital management - HCM - names. The sector is seeing increased bouts of volatility as the market balances slowing macro and employment-related data coupled with long-term secular opportunities spanning payroll, workforce management, HR, benefits, talent, HR outsourcing, analytics, and payments, the analyst tells investors in a research note. The firm sees more downside to temp help compared to higher growth HCM software, though it also believes HCM-related multiple expansion could offset any float-related interest headwinds in a lower interest rate environment, UBS added.

Argus

Buy

maintain

$340 -> $345

2025-08-01

Reason

Argus

Price Target

$340 -> $345

2025-08-01

maintain

Buy

Reason

Argus raised the firm's price target on ADP to $345 from $340 and keeps a Buy rating on the shares. The company reported fiscal Q4 adjusted EPS that rose 8% from the prior year and topped Street expectations, while management has signaled confidence in its outlook with a 10% dividend hike, the analyst tells investors in a research note.

Jefferies

Hold

maintain

$305 -> $315

2025-07-30

Reason

Jefferies

Price Target

$305 -> $315

2025-07-30

maintain

Hold

Reason

Jefferies raised the firm's price target on ADP (ADP) to $315 from $305 and keeps a Hold rating on the shares after a "solid" Q4 report. The FY26 revenue growth outlook of 5%-6% was below ADP's mid-term target, but overall guidance still met consensus, notes the analyst, who adds that the while the report was "not perfect in absolute terms," it was solid "on a relative basis" versus what was feared after the report from Paychex (PAYX).

BMO Capital

Market Perform

initiated

$340

2025-07-10

Reason

BMO Capital

Price Target

$340

2025-07-10

initiated

Market Perform

Reason

BMO Capital initiated coverage of ADP with a Market Perform rating and $340 price target. The firm says the shares have benefited from relative stability of the business in a more uneven macro backdrop. However, ADP is trading at the high end of its historical price-to-earnings range, leaving BMO looking for a more attractive entry point, the analyst tells investors in a research note.

Morgan Stanley

Equal Weight

maintain

$305 -> $310

2025-06-18

Reason

Morgan Stanley

Price Target

$305 -> $310

2025-06-18

maintain

Equal Weight

Reason

Morgan Stanley raised the firm's price target on ADP to $310 from $305 and keeps an Equal Weight rating on the shares, telling investors that it came away from ADP's Investor Day "encouraged" by the agentic AI focus, the potential of the Fiserv partnership, and better-than-expected float dynamics. Medium-term targets call for 6%-7% year-over-year revenue growth and 9%-11% year-over-year adjusted EPS growth, the analyst noted.

UBS

Kevin McVeigh

Neutral

downgrade

$323 -> $315

2025-06-13

Reason

UBS

Kevin McVeigh

Price Target

$323 -> $315

2025-06-13

downgrade

Neutral

Reason

UBS analyst Kevin McVeigh lowered the firm's price target on ADP to $315 from $323 and keeps a Neutral rating on the shares. ADP's investor day showcased notable milestones and tweaked its medium-term outlook, now expecting lower revenue growth of 6%-7% on slower Professional Employer Organization growth, the analyst tells investors in a research note. The firm is monitoring ADP's technology and distribution investments impact on margins, though it applauds ADP's trajectory and acknowledges its competitive positioning.

See All Ratings

Valuation Metrics

The current forward P/E ratio for Automatic Data Processing Inc (ADP.O) is 26.89, compared to its 5-year average forward P/E of 28.15. For a more detailed relative valuation and DCF analysis to assess Automatic Data Processing Inc 's fair value, click here.

Forward PE

The forward P/E ratio is a valuation metric that divides a company's current stock price by its estimated future earnings per share over the next 12 months.

Fair

5Y Average PE

28.15

Current PE

26.89

Overvalued PE

30.61

Undervalued PE

25.69

Forward EV/EBITDA

The forward EV/EBITDA ratio is a valuation metric that divides a company's enterprise value (EV) by its estimated future earnings before interest, taxes, depreciation, and amortization (EBITDA) over the next 12 months.

N/A

5Y Average EV/EBITDA

19.71

Current EV/EBITDA

0.00

Overvalued EV/EBITDA

21.41

Undervalued EV/EBITDA

18.01

Forward PS

The forward P/S ratio is a valuation metric that divides a company's current stock price by its estimated future sales (or revenue) per share over the next 12 months.

N/A

5Y Average PS

5.31

Current PS

0.00

Overvalued PS

5.75

Undervalued PS

4.88