Automatic Data Processing, Inc. engages in the provision of 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 management, and tax compliance administration; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Vantage HCM, a solution for HR management, benefits administration, payroll services, time and attendance management, and talent management. The PEO Services segment provides HR and employment administration outsourcing solutions under ADP TotalSource name to businesses through a co-employment model. The segment also provides employee benefits, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services. The company was founded in 1949 and is headquartered in Roseland, New Jersey.

Компания Automatic Data Processing, Inc. демонстрирует смешанные результаты по фундаментальным метрикам. Показатель P/E находится ниже медианы отрасли, что может свидетельствовать о недооцененности, однако его динамика указывает на увеличение, что является негативным фактором. По метрикам эффективности, таким как ROE и ROA, компания значительно превосходит отралевые показатели, что говорит о высокой рентабельности. Тем не менее, долговая нагрузка по отношению к собственному капиталу выше медианы, что создает риски в условиях меняющейся экономической среды. Дивидендная доходность отсутствует, что может настораживать инвесторов, ориентированных на доходность. В то же время показатели выручки и чистой прибыли устойчиво растут, что подтверждает стабильность бизнеса. Важно также отметить, что коэффициенты ликвидности находятся ниже медианы, что может вызвать дополнительные вопросы по финансовой устойчивости. В целом, несмотря на некоторые сильные стороны, есть и несколько слабых метрик, которые могут негативно повлиять на оценочную стоимость компании в краткосрочной перспективе.

Automatic Data Processing, Inc.

Data is currently not available
Edit My Quotes
Add up to 25 symbols
To add symbols:
Type a symbol or company name. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return.
Copy and paste multiple symbols separated by spaces.
These symbols will be available throughout the site during your session.
Save data
Data is currently not available
Edit My European Quotes
Add up to 25 instruments
To add instruments:
Type a instrument or company name. When the instrument you want to add appears, add it to My European Quotes by selecting it and pressing Enter/Return.
Copy and paste multiple instruments separated by spaces.
These instruments will be available throughout the site during your session.
Save data
Data is currently not available
Your symbols have been updated
You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com.
Continue
Data is currently not available
Edit Watchlist
Add up to 20 symbols
To add symbols:
Type a symbol or company name. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return.
Copy and paste multiple symbols separated by spaces.
These symbols will be available throughout the site during your session.
Save data

ADP (ADP) Q3 2025 Earnings Call Transcript

ADP (ADP) Q1 2025 Earnings Call Transcript

ADP (ADP) Q3 2026 Earnings Call Transcript

Automatic Data Processing, Inc. ADP posted third-quarter fiscal 2026 adjusted earnings per share of $3.37, beating the Zacks Consensus Estimate of $3.28 by 2.7%. The metric increased 10.1% from the year-ago quarter.
Total revenues came in at $5.94 billion, topping the consensus mark of $5.86 billion by 1.4% and rising 7% year over year. Operationally, Employer Services client revenue retention and overall client satisfaction reached record highs for the third quarter.
Automatic Data Processing, Inc. Price, Consensus and EPS Surprise
ADP Posts Broad-Based Top-Line Growth
ADP’s revenue performance reflected gains across its two operating segments. Employer Services revenues increased 7% year over year to $4.04 billion, whereas PEO Services revenues rose 7% to $1.91 billion.
Client funds tailwinds also remained supportive. Interest on funds held for clients increased 14% year over year to $403.9 million, driven by average client funds balances that rose 9% to $48.3 billion and an average yield of 3.3%, up 10 basis points.
Automatic Data Processing Sees Employer Services Lift
Employer Services continued to be a key growth engine in the quarter. Management cited solid business booking growth, while retention and client satisfaction set record highs for the third quarter.
Profitability improved meaningfully in the segment. Employer Services’ margin expanded 130 basis points year over year, with ADP pointing to operational productivity improvements alongside growth in client funds interest revenues as notable contributors.
ADP’s PEO Segment Mix Weighs on Margin
PEO Services turned in another quarter of revenue expansion, but profitability moved the other way. Segment margin declined 120 basis points year over year, reflecting a combination of business mix and cost items within the segment.
ADP noted that zero-margin benefits pass-through growth was a key factor behind the margin pressure. Higher state unemployment insurance costs and higher selling expenses also contributed. On an operating metric basis, average worksite employees increased 2% year over year to about 762,000.
Automatic Data Processing Expands Adjusted Operating Profit
ADP converted its revenue growth into higher operating profit. Adjusted EBIT increased 10% year over year to $1.79 billion and the adjusted EBIT margin improved to 30.2%, representing an 80-basis-point expansion.
Below the operating line, ADP’s effective tax rate for the quarter was 23.7% on both a reported and adjusted basis. On a GAAP basis, net earnings increased 9% year over year to $1.36 billion, while diluted earnings per share rose 10% to $3.38.
ADP’s Balance Sheet Shows Higher Client Fund Levels
Automatic Data Processing ended March 31, 2026, with cash and cash equivalents of $3.23 billion. Funds held for clients totaled $46.41 billion, matched by client funds obligations of $46.77 billion, underscoring the scale of client funds activity in the quarter.
On leverage, long-term debt stood at $3.98 billion. Through the first nine months of fiscal 2026, ADP generated $4.01 billion in cash from operating activities. Capital returns remained sizable, with $1.46 billion used for share repurchases and $1.94 billion paid out in dividends over the same nine months.
Automatic Data Processing Raises FY26 Outlook
ADP raised its fiscal 2026 outlook following the quarter’s results. The company expects total revenue growth of 6-7% and an adjusted EBIT margin expansion of 70-80 basis points. It also lifted its adjusted diluted earnings per share growth view to 10-11%.
Within the outlook, ADP updated expectations for client funds contribution, projecting interest on funds held for clients of $1.340 billion to $1.350 billion, and total contribution from the client funds extended investment strategy of $1.300 billion to $1.310 billion. Strategically, ADP highlighted continued investment in AI across products and service delivery, including further deployment of ADP Assist agents and an expanded agentic AI ecosystem through ADP Marketplace, alongside scaling GenAI capabilities across service operations via “The Zone.”
ADP carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Waste Connections, Inc. WCN posted impressive first-quarter 2026 results.
WCN’s adjusted earnings of $1.23 per share outpaced the consensus mark by 3.4% and rose 8.9% from the year-ago quarter. WCN’s total revenues of $2.37 billion beat the consensus mark by 0.7% and increased 6.4% year over year.
S&P Global Inc. SPGI reported impressive first-quarter 2026 results.
SPGI’s adjusted earnings per share of $4.97 beat the consensus mark by 3.1% and rose 13.7% year over year. Total revenues came in at $4.2 billion, surpassing the consensus estimate by 2.6% and rising 10.4% from the year-ago quarter.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ADP Q3 Earnings Top Estimates on Strong Revenue Execution

(RTTNews) - Automatic Data Processing, Inc. (ADP), a provider of cloud-based human capital management solutions, on Wednesday reported its higher net income in the third quarter compared with the previous year.
For the third quarter, net income increased to $1.36 billion from $1.25 billion in the previous year.
Earnings per share were $3.38 versus $3.06 last year.
Adjusted net income increased to $1.36 billion from $1.25 billion in the previous year.
Adjusted earnings per share were $3.37 versus $3.06 last year.
Adjusted EBIT rose to $1.79 billion from $1.63 billion in the prior year.
Revenue increased to $5.94 billion from $5.55 billion in the previous year.
Looking ahead, the company now expects growth of 6% to 7% compared to the previously expected growth of 6%
Earnings per share for the fiscal year 2026 is anticipated to grow 10% to 11%, from the previously expected growth of 9% to 10%.
Adjusted earnings per share is expected to grow 10% to 11%, from the previously expected growth of 9% to 10%.
In the pre-market trading, 4.06% higher at $207.25 on the Nasdaq.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ADP Q3 Earnings Up; Raises FY26 Outlook; Share Surge In Pre-market

Automatic Data Processing (ADP) came out with quarterly earnings of $3.37 per share, beating the Zacks Consensus Estimate of $3.28 per share. This compares to earnings of $3.06 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.62%. A quarter ago, it was expected that this payroll and human resources company would post earnings of $2.58 per share when it actually produced earnings of $2.62, delivering a surprise of +1.55%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
ADP, which belongs to the Zacks Internet - Software industry, posted revenues of $5.94 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.43%. This compares to year-ago revenues of $5.55 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
ADP shares have lost about 22.6% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for ADP?
While ADP has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for ADP was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.58 on $5.4 billion in revenues for the coming quarter and $10.96 on $21.8 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Twilio (TWLO), another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on April 30.
This company is expected to post quarterly earnings of $1.27 per share in its upcoming report, which represents a year-over-year change of +11.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Twilio's revenues are expected to be $1.34 billion, up 14.4% from the year-ago quarter.
Should You Invest in Automatic Data Processing, Inc. (ADP)?
Before you invest in Automatic Data Processing, Inc. (ADP), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Automatic Data Processing (ADP) Q3 Earnings and Revenues Beat Estimates

The following companies are expected to report earnings prior to market open on 04/29/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
AbbVie Inc. (ABBV)is reporting for the quarter ending March 31, 2026. The large cap pharmaceutical company's consensus earnings per share forecast from the 5 analysts that follow the stock is $2.62. This value represents a 6.50% increase compared to the same quarter last year. In the past year ABBV has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 1.88%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ABBV is 13.89 vs. an industry ratio of 15.00.
AstraZeneca PLC (AZN)is reporting for the quarter ending March 31, 2026. The biomedical (gene) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $2.57. This value represents a 3.63% increase compared to the same quarter last year. AZN missed the consensus earnings per share in the 4th calendar quarter of 2025 by -51.38%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for AZN is 18.26 vs. an industry ratio of -6.90, implying that they will have a higher earnings growth than their competitors in the same industry.
TotalEnergies SE (TTE)is reporting for the quarter ending March 31, 2026. The oil refining company's consensus earnings per share forecast from the 3 analysts that follow the stock is $1.99. This value represents a 8.74% increase compared to the same quarter last year. Zacks Investment Research reports that the 2026 Price to Earnings ratio for TTE is 9.25 vs. an industry ratio of 13.40.
Amphenol Corporation (APH)is reporting for the quarter ending March 31, 2026. The electrical connectors company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.95. This value represents a 50.79% increase compared to the same quarter last year. In the past year APH has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 4.3%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for APH is 34.25 vs. an industry ratio of 12.70, implying that they will have a higher earnings growth than their competitors in the same industry.
UBS AG (UBS)is reporting for the quarter ending March 31, 2026. The bank (foreign) company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.85. This value represents a 66.67% increase compared to the same quarter last year. In the past year UBS has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 48%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for UBS is 13.14 vs. an industry ratio of 11.50, implying that they will have a higher earnings growth than their competitors in the same industry.
General Dynamics Corporation (GD)is reporting for the quarter ending March 31, 2026. The aerospace and defense company's consensus earnings per share forecast from the 8 analysts that follow the stock is $3.68. This value represents a 0.55% increase compared to the same quarter last year. In the past year GD has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 1.46%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for GD is 19.17 vs. an industry ratio of -58.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Automatic Data Processing, Inc. (ADP)is reporting for the quarter ending March 31, 2026. The internet software company's consensus earnings per share forecast from the 5 analysts that follow the stock is $3.28. This value represents a 7.19% increase compared to the same quarter last year. In the past year ADP has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 1.55%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ADP is 18.00 vs. an industry ratio of -35.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Regeneron Pharmaceuticals, Inc. (REGN)is reporting for the quarter ending March 31, 2026. The biomedical (gene) company's consensus earnings per share forecast from the 7 analysts that follow the stock is $6.28. This value represents a 2.33% decrease compared to the same quarter last year. REGN missed the consensus earnings per share in the 1st calendar quarter of 2025 by -2.72%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for REGN is 20.69 vs. an industry ratio of -6.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Canadian National Railway Company (CNI)is reporting for the quarter ending March 31, 2026. The transportation (rail) company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.31. This value represents a 1.55% increase compared to the same quarter last year. CNI missed the consensus earnings per share in the 2nd calendar quarter of 2025 by -1.46%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for CNI is 20.03 vs. an industry ratio of 16.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Phillips 66 (PSX)is reporting for the quarter ending March 31, 2026. The oil refining company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.55. This value represents a 38.89% increase compared to the same quarter last year. PSX missed the consensus earnings per share in the 1st calendar quarter of 2025 by -16.88%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for PSX is 10.81 vs. an industry ratio of 13.40.
Entergy Corporation (ETR)is reporting for the quarter ending March 31, 2026. The electric power utilities company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.89. This value represents a 8.54% increase compared to the same quarter last year. In the past year ETR has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ETR is 25.78 vs. an industry ratio of 18.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Garmin Ltd. (GRMN)is reporting for the quarter ending March 31, 2026. The electrical instrument company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.84. This value represents a 14.29% increase compared to the same quarter last year. GRMN missed the consensus earnings per share in the 1st calendar quarter of 2025 by -2.42%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for GRMN is 27.35 vs. an industry ratio of 29.60.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pre-Market Earnings Report for April 29, 2026 : ABBV, AZN, TTE, APH, UBS, GD, ADP, REGN, CNI, PSX, ETR, GRMN

ADP ADP is scheduled to release third-quarter fiscal 2026 results on April 29, before market open.
ADP has a decent earnings surprise history, surpassing the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 2.2%.
Automatic Data Processing, Inc. Price and EPS Surprise
ADP’s Q3 Expectations
The Zacks Consensus Estimate for the top line is pinned at $5.9 billion, indicating 5.4% year-over-year growth.
The consensus estimate for third-quarter fiscal 2026 revenues of $4 billion from Employer Services implies a 5.7% rise from the year-ago quarter’s actual. Continued strength in international, U.S. enterprise and compliance businesses is anticipated to have supported this segment’s growth.
For Professional Employer Organization (“PEO”) services, the Zacks Consensus Estimate for revenues is held at $1.9 billion, suggesting 5.8% year-over-year growth. Persistent growth in zero-margin pass-through and robust business booking growth are the likely factors to have driven this segment’s performance.
The consensus mark for Interest on Funds held for clients is kept at $390 million, indicating 9.8% growth from the year-ago quarter’s reported figure. Higher average client fund balance growth is expected to have caused the uptick in this segment’s revenues.
The consensus estimate for earnings per share is kept at $3.28, suggesting year-over-year growth of 7.2%. Prudent cost-management initiatives are anticipated to have aided the bottom line.
The Zacks Consensus Estimate for Average Paid PEO Worksite Employees for the quarter is 762, a 1.9% uptick from the year-ago quarter’s actual.
What Our Model Says About ADP
Our proven model does not conclusively predict an earnings beat for ADP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
ADP has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.
Stocks to Consider
Here are a few stocks from the broader Computer and Technology sector, which, according to our model, have the right combination of elements to beat on earnings this season.
Sandisk Corporation SNDK: The Zacks Consensus Estimate for the company’s third-quarter fiscal 2026 revenues is pinned at $4.6 million, indicating a 168.6% year-over-year upsurge. For earnings, the consensus mark is set at $13.92 per share, whereas it incurred a loss of 30 cents in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, the average surprise being 371.3%.
SNDK has an Earnings ESP of +2.59% and flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to declare third-quarter fiscal 2026 results on April 30.
Extreme Networks EXTR: The Zacks Consensus Estimate for the company’s third-quarter fiscal 2026 revenues is kept at $311.7 million, indicating a year-over-year increase of 9.6%. For earnings, the consensus mark is pinned at 24 cents per share, suggesting a 14.3% jump from that reported in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, with an average surprise of 8.1%.
EXTR currently has an Earnings ESP of +1.41% and a Zacks Rank #2. The company is scheduled to declare third-quarter fiscal 2026 results on April 29.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ADP to Report Q3 Earnings: Here's What Investors Should Know

In its upcoming report, Automatic Data Processing (ADP) is predicted by Wall Street analysts to post quarterly earnings of $3.28 per share, reflecting an increase of 7.2% compared to the same period last year. Revenues are forecasted to be $5.86 billion, representing a year-over-year increase of 5.4%.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Given this perspective, it's time to examine the average forecasts of specific ADP metrics that are routinely monitored and predicted by Wall Street analysts.
Based on the collective assessment of analysts, 'Segment revenues- Employer Services' should arrive at $3.98 billion. The estimate points to a change of +5.7% from the year-ago quarter.
Analysts expect 'Revenues- Interest on funds held for clients' to come in at $389.73 million. The estimate points to a change of +9.7% from the year-ago quarter.
The combined assessment of analysts suggests that 'Revenues- PEO revenues' will likely reach $1.89 billion. The estimate points to a change of +6.1% from the year-ago quarter.
The average prediction of analysts places 'Segment revenues- PEO Services' at $1.89 billion. The estimate points to a change of +5.8% from the year-ago quarter.
Analysts forecast 'Revenues- Revenues, other than interest on funds held for clients and PEO revenues' to reach $3.59 billion. The estimate suggests a change of +5.3% year over year.
View all Key Company Metrics for ADP here>>>
Shares of ADP have experienced a change of -2.9% in the past month compared to the +8.1% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), ADP is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Insights Into ADP (ADP) Q3: Wall Street Projections for Key Metrics

Key Points
Most dividend stocks have been out of favor for months now.
The rise of artificial intelligence is also weighing on companies that rely on a strong, growing labor pool.
Nothing lasts forever, however, and not everything is always as it seems.
Growth stocks may be roaring again, but they're largely still doing so at the expanse of value stocks and dividend stocks.
As veteran investors can attest, however, this ebb and flow is reliably cyclical. The current leaders will eventually become the laggards, and vice versa. Of course, the time to buy anything is when it's out of favor, particularly if a pullback has pumped up a dividend stock's yield to a level you'd love to lock in.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
With that as the backdrop, income-minded investors looking to put some idle cash to work would be wise to consider stepping into a stake in Automatic Data Processing (NASDAQ: ADP) while it's down nearly 70% from its mid-2025 peak.
Rough patch
You know the company, although you probably know it better by its more familiar name "ADP" -- the payroll processer that serves 1 out of every 6 United States workers. It's not just a paycheck middleman, though. Benefits administration, time clock management, and personnel recruitment are all in its wheelhouse.
Still, the stock's been shellacked since early June last year. What gives?
A combination of factors is at work here. One of them is a few too many disappointing jobs reports; Automatic Data Processing responded with disappointing revenue guidance.
Perhaps weighing most on investors' minds, however, is the advent of artificial intelligence (AI) and what it may mean for ADP's business. Not only will AI allow enterprises to function with fewer employees, but AI itself could conceivably replace Automatic Data Processing as a service provider. And it's not a wild concern.
It'll be fine
As time marches on, however, the world can't help but notice that AI isn't necessarily suited to handle every task.
Oh, it's great at doing the ambiguous stuff like sifting through a massive amount of digital data and turning it into actionable insights. It's not consistently precise, though. Artificial intelligence doesn't always truly understand what it's being asked to do or how to do it -- because it doesn't know what it doesn't know -- and it certainly doesn't understand context or appreciate the need for perfection. And if there's one area where anything less than perfection is unacceptable, it's employee payroll.
That's the long way of saying ADP is better-shielded than it may seem.
Underscoring this argument is January's release of the company's fiscal second-quarter numbers. Revenue grew 6% year over year to $5.4 billion, topping estimates. Per-share earnings of $2.62 also beat estimates of $2.57, improving the year-earlier comparison of $2.35 by 11%. Best of all, Automatic Data Processing raised the low end of its full-year sales and profit guidance for the fiscal year ending in June. It's now looking for top-line growth of 6% driving earnings growth of 9% to 10%. Not bad.
Sooner than later
In light of the stock's continued weakness in the meantime, clearly the market isn't convinced the foreseeable future is firmly bullish. Don't sweat it too much. Analysts expect the company to meet its own guidance for the current fiscal year, and then repeat those growth numbers next year.
Either way, you can plug into ADP's dividend at a healthy, forward-looking yield of 3.3%. That's based on a dividend, by the way, that's now been raised for 51 consecutive years.
Should you buy stock in Automatic Data Processing right now?
Before you buy stock in Automatic Data Processing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Automatic Data Processing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $511,411!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,238,736!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Automatic Data Processing, Inc.

Sign up and unlock all the capabilities of the AI-screener