FairValu
AUTOMATIC DATA PROCESSING INC

AUTOMATIC DATA PROCESSING INC

ADPNasdaqGS

Software - Application • Technology

Current Price
$287.480.00%
Market Cap
$114.21B
Shares Outstanding: 397.26M
Volume
-
Avg Vol (3M): -
Next Earnings
-
52 Week Range
Low: $--High: $--

Comprehensive AI Analysis

Strategic AI Analysis for ADP

Checking whether the approved providers contain enough current financial data for a reliable report.

Summary

Source-linked company research for ADP

Factor Scorecard

Mechanical 0-100 composites from the displayed inputs. Bands and colours are numerical aids, not security ratings or investment actions.

17/31 signals active· low confidence at 54% coverage
Overall Factor Score
6055-69 band
Growth
5240-54 band
Quality
8785-100 band
Valuation
5955-69 band
Financial Health
4340-54 band

Latest results at a glance

Insights from the latest company results and reports · filed 29 Jul 2026

  • Full-Year Earnings Exceed Expectations

    Diluted EPS increased 10% to $10.94 for the year, while adjusted diluted EPS increased 11% to $11.12. Reported EPS of $2.64 per share exceeded the same-quarter consensus estimate of $2.60 per share for the quarter ended June 30, 2026.

  • Fiscal 2027 Outlook Provided

    The company's fiscal 2027 consolidated outlook includes revenue growth of 5% to 6%, adjusted EBIT margin expansion of 70 to 90 basis points, and adjusted diluted EPS growth of 9% to 11%.

  • Employer Services Bookings Grow

    Employer Services new business bookings increased 6% for the fiscal year to $2.2 billion.

  • Margins Expand Year Over Year

    For the full year, adjusted EBIT increased 10% to $5.9 billion, and adjusted EBIT margin increased 80 basis points to 26.8%. Net margin was 20.11% for the fiscal year ended June 30, 2026, up from 19.84% for the prior year.

  • Client Retention and Funds Revenue

    Client revenue retention was 92.1%, with guidance for a decline of 30 to 10 basis points. Client funds interest revenue was $1,355 million, with guidance for $1,540 million to $1,560 million.

  • Investor Conference Scheduled

    [2026-08-27] ADP announced that members of its management team will present at Citi's Global TMT Conference on September 9, 2026.

AI-generated · updated 28 Aug 2026View source filing

Price Chart

NASDAQ:ADP via TradingView

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Overview

Quarterly income statement data isn't available for this company.

No Data

No annual financial data available.

Financial Fundamentals

Growth, quality, valuation, cash generation, and balance-sheet strength.

Sector: Technology

Growth

TTM revenue plus current, long-term, forward, and accelerating top-line trends.

Revenue
-
Revenue Growth
6.7%
Moderate
Revenue CAGR 3Y
-
Forward Revenue Growth
5.8%
Moderate
Revenue Acceleration
-0.3%
Slowing

Earnings

Trailing EPS, current EPS growth, long-term compounding, surprise, and forward expectations.

EPS (TTM)
11.02
Profitable
EPS Growth
8.2%
Moderate
EPS CAGR 3Y
-
EPS Surprise
1.6%
Beat
Forward EPS
12.26
Profitable
Fwd Revenue Growth
5.8%
Forward EPS Growth
9.3%
Moderate

Profitability

TTM margin and return metrics that reflect pricing power and business quality.

Gross Margin
46.4%
High
Operating Margin
-
Net Margin
20.1%
High
ROE
69.5%
Excellent
ROIC
-

Cash Flow

TTM free cash flow, growth, margin, and operating-cash conversion quality.

Free Cash Flow
-
FCF Growth
-
FCF Margin
-
Cash Conversion
1.23x
Excellent

Valuation

Metrics ranked by issuer type, financial state, and input quality.

Growth companyPrimary lens

Forward P/E

Forward P/E is the primary lens because positive expected earnings make the next operating period directly assessable.

Forward P/EPrimary
23.45x
Low
Trailing P/ESupporting
26.09x
Typical
Price / SalesContext
5.20x
High
Price / BookContext
17.98x
High

Financial Health

Latest-quarter liquidity and leverage checks plus TTM interest coverage.

Current Ratio
1.04x
Adequate
Quick Ratio
0.13x
Risky
Debt / Equity
0.63x
Moderate
Interest Coverage
-

Shareholder Signals

Capital returns and dilution checks sourced from statements and insider filings.

Dividend Yield
2.3%
Moderate
Payout Ratio
59.5%
Sustainable
Buyback Yield
1.8%
Positive
Net Insider Buys
-19
Selling

Peer Comparison

TickerPrice
ADPAUTOMATIC DATA PROCESSING INC
$287.48
Company Profile

About the Company

Automatic Data Processing, Inc. provides cloud-based human capital management (HCM) 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. This segment's offerings include RUN Powered by ADP, a software platform for small business payroll, HR, and compliance; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Lyric HCM, a solution for HR management, payroll, workforce management, talent, and data analytics. Its PEO Services segment provides HR outsourcing solutions under ADP TotalSource name to businesses through a co-employment model. This segment also provides guidance, user-friendly technology, comprehensive employee benefits, and a risk management, safety, and workers' compensation program. The company was founded in 1949 and is headquartered in Roseland, New Jersey.

Next Earnings Date

Oct 28, 2026

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