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.

ADP looks like a high-quality but not cheap business with very strong profitability and moderate leverage. A P/E ratio 7.5% below the industry median looks supportive of the valuation; however, P/S and P/B are noticeably above industry levels, which indicates a quality premium and limits the potential for re-rating. P/FCF is around the median, so free cash flow no longer provides a clear argument for significant upside. Returns on capital and assets remain outstanding: ROE, ROI, and ROA are materially above the industry, while profit margin and operating margin are consistently high and barely deteriorate over the years. This is a strong positive for the durability of the model, because the company demonstrates an ability to generate a lot of profit on relatively moderate revenue. Revenue, EBITDA, operating income, and net income are growing, which confirms fundamental resilience and the absence of signs of business deterioration. At the same time, liquidity is weak: the quick ratio is zero, and the current ratio is only slightly above 1, which for an investor means dependence on working capital structure and a limited margin of safety. Debt-to-capital and long-term debt do not look critical, but they are still above the industry median, so the balance sheet cannot be called risk-free. The dividend yield has increased, which adds attractiveness for an income investor, but the yield itself remains moderate. Overall, the picture supports the current valuation rather than justifying aggressive upside in the target price. For ADP, a conservative view is more reasonable: strong business quality and stable growth are offset by premium multiples and imperfect liquidity. Therefore, the fundamentals are more likely to slightly restrain the target valuation than to meaningfully lift it.

Automatic Data Processing, Inc.

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Сильный индекс, значительно вырос. Рынок на стороне быков.

Strong index, significantly up. The market is on the bulls' side.

Сильный индекс, значительно вырос. Приток средств в лонги на высоком уровне.

Strong index, significantly up. Inflow of funds into longs at a high level.

ADP demonstrates strong profitability and earnings growth, but premium valuation multiples and weak liquidity limit revaluation potential.

For the quarter ended June 2026, Automatic Data Processing (ADP) reported revenue of $5.47 billion, up 6.8% over the same period last year. EPS came in at $2.64, compared to $2.26 in the year-ago quarter.
The reported revenue represents a surprise of +0.87% over the Zacks Consensus Estimate of $5.43 billion. With the consensus EPS estimate being $2.59, the EPS surprise was +1.93%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Segment revenues- Employer Services: $3.7 billion versus the three-analyst average estimate of $3.67 billion. The reported number represents a year-over-year change of +6.7%.
Revenues- Interest on funds held for clients: $355.4 million versus $340.62 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +15.5% change.
Revenues- PEO revenues: $1.78 billion versus $1.78 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.9% change.
Segment revenues- PEO Services: $1.78 billion versus $1.76 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.9% change.
Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $3.34 billion compared to the $3.33 billion average estimate based on two analysts. The reported number represents a change of +5.8% year over year.
Shares of ADP have returned +18% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
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 (ADP) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

(RTTNews) - While reporting financial results for the fourth quarter on Wednesday, technology company Automatic Data Processing Inc. (ADP) initiated its earnings, adjusted earnings and revenue growth guidance for the full-year 2027.
For fiscal 2027, ADP now projects earnings per share growth of 11 to 13 percent and adjusted earnings per share growth of 9 to 11 percent on revenue growth of 5 to 6 percent.
In Wednesday's pre-market trading, ADP is trading on Nasdaq at $261.47, down $2.70 or 1.02 percent.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
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 Sees Growth In FY27 - Update

(RTTNews) - Automatic Data Processing Inc. (ADP) reported a profit for its fourth quarter that Increases, from last year
The company's bottom line came in at $978.6 million, or $2.45 per share. This compares with $910.6 million, or $2.23 per share, last year.
Excluding items, Automatic Data Processing Inc. reported adjusted earnings of $1.054 billion or $2.64 per share for the period.
The company's revenue for the period rose 6.8% to $5.473 billion from $5.126 billion last year.
Automatic Data Processing Inc. earnings at a glance (GAAP) :
-Earnings: $978.6 Mln. vs. $910.6 Mln. last year. -EPS: $2.45 vs. $2.23 last year. -Revenue: $5.473 Bln vs. $5.126 Bln last year.
For the year fiscal 2027,Adjusted diluted earnings per share is expected to be between 9% to 11% and revenue growth is expected to be between 5% to 6%.
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. Announces Rise In Q4 Bottom Line

(RTTNews) - Automatic Data Processing Inc. (ADP) will host a conference call at 8:30 AM ET on July 29, 2026, to discuss Q4 26 earnings results.
To access the live webcast, log on to https://investors.adp.com/events-and-presentations/default.aspx
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 Q4 26 Earnings Conference Call At 8:30 AM ET

The following companies are expected to report earnings prior to market open on 07/29/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
Procter & Gamble Company (PG)is reporting for the quarter ending June 30, 2026. The consumer company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.41. This value represents a 4.73% decrease compared to the same quarter last year. In the past year PG has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 1.92%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for PG is 21.60 vs. an industry ratio of 16.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Amphenol Corporation (APH)is reporting for the quarter ending June 30, 2026. The electrical connectors company's consensus earnings per share forecast from the 3 analysts that follow the stock is $1.19. This value represents a 46.91% 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 1st calendar quarter where they beat the consensus by 11.58%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for APH is 30.65 vs. an industry ratio of 7.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Vertiv Holdings, LLC (VRT)is reporting for the quarter ending June 30, 2026. The information technology services company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.43. This value represents a 50.53% increase compared to the same quarter last year. In the past year VRT has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 14.71%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for VRT is 45.08 vs. an industry ratio of -3.50, 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 June 30, 2026. The aerospace and defense company's consensus earnings per share forecast from the 6 analysts that follow the stock is $3.95. This value represents a 5.61% 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 1st calendar quarter where they beat the consensus by 11.41%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for GD is 23.36 vs. an industry ratio of -0.40, 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 June 30, 2026. The internet software company's consensus earnings per share forecast from the 5 analysts that follow the stock is $2.59. This value represents a 14.60% 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 1st calendar quarter where they beat the consensus by 2.74%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ADP is 23.01 vs. an industry ratio of 142.60.
Johnson Controls International plc (JCI)is reporting for the quarter ending June 30, 2026. The building company's consensus earnings per share forecast from the 6 analysts that follow the stock is $1.32. This value represents a 25.71% increase compared to the same quarter last year. In the past year JCI has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 6.25%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for JCI is 29.26 vs. an industry ratio of 17.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Aon plc (AON)is reporting for the quarter ending June 30, 2026. The insurance brokers company's consensus earnings per share forecast from the 9 analysts that follow the stock is $3.77. This value represents a 8.02% increase compared to the same quarter last year. In the past year AON has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 2.37%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for AON is 19.23 vs. an industry ratio of 8.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Boston Scientific Corporation (BSX)is reporting for the quarter ending June 30, 2026. The medical products company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.83. This value represents a 10.67% increase compared to the same quarter last year. In the past year BSX 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 BSX is 13.59 vs. an industry ratio of 26.50.
Cenovus Energy Inc (CVE)is reporting for the quarter ending June 30, 2026. The oil company's consensus earnings per share forecast from the 2 analysts that follow the stock is $1.11. This value represents a 236.36% increase compared to the same quarter last year. In the past year CVE has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 8.93%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for CVE is 9.28 vs. an industry ratio of 12.40.
Entergy Corporation (ETR)is reporting for the quarter ending June 30, 2026. The electric power utilities company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.94. This value represents a 10.48% decrease compared to the same quarter last year. ETR missed the consensus earnings per share in the 1st calendar quarter of 2026 by -3.37%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ETR is 25.85 vs. an industry ratio of 19.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Old Dominion Freight Line, Inc. (ODFL)is reporting for the quarter ending June 30, 2026. The truck company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.52. This value represents a 19.69% increase compared to the same quarter last year. ODFL missed the consensus earnings per share in the 2nd calendar quarter of 2025 by -1.55%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for ODFL is 40.79 vs. an industry ratio of 42.80.
Garmin Ltd. (GRMN)is reporting for the quarter ending June 30, 2026. The electrical instrument company's consensus earnings per share forecast from the 3 analysts that follow the stock is $2.27. This value represents a 4.61% increase compared to the same quarter last year. In the past year GRMN has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 13.04%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for GRMN is 25.44 vs. an industry ratio of 14.50, implying that they will have a higher earnings growth than their competitors in the same industry.
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 July 29, 2026 : PG, APH, VRT, GD, ADP, JCI, AON, BSX, CVE, ETR, ODFL, GRMN

ADP ADP is scheduled to release fourth-quarter fiscal 2026 results on July 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%.
Automatic Data Processing, Inc. Price and EPS Surprise
ADP’s Q4 Expectations
The Zacks Consensus Estimate for the top line is set at $5.4 billion, indicating 5.9% year-over-year growth. Top-line growth is likely to have stemmed from positive contributions across its segments, with Employer Services (ES) moving the needle with the highest revenue contributions.
The consensus estimate for the ES segment revenues is pinned at $3.7 billion. It suggests 5.8% year-over-year growth, which the company is anticipated to have achieved on the back of business bookings and strong client retention.
The Zacks Consensus Estimate for Professional Employer Organization services revenues is pegged at $1.8 billion, indicating a 5.9% year-over-year gain. Robust sales activity and client wins are expected to have been the primary growth catalysts. We are inclined to believe that growth in client gross payrolls and state unemployment revenues has contributed to revenue growth as well.
The consensus mark for Interest on Funds held for clients is at $340.6 million, suggesting a 10.7% jump from the year-ago quarter’s actual. ADP is expected to have registered growth in average client funds to fuel this growth.
The consensus estimate for earnings per share is set at $2.59, suggesting year-over-year growth of 14.6%. Controlled selling expenses that raise margins, facilitated by robust top-line growth, are likely to have supported bottom-line expansion. Moreover, continued share repurchase activities, lowering shares outstanding, are anticipated to have aided EPS.
What Our Model Says About ADP
Our model predicts 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. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
ADP has an Earnings ESP of +0.16% and a Zacks Rank of 3 at present
Other Stocks to Consider
Here are a few other stocks from the broader Computer and Technology sector, which, according to our model, also have the right combination of elements to beat on earnings this season.
nVent Electric plc NVT: The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pinned at $1.3 billion, indicating a 30.2% year-over-year jump. For earnings, the consensus mark is set at $1.16 per share, suggesting 34.9% year-over-year growth. The company beat the Zacks Consensus Estimate in the past four quarters, the average surprise being 7.3%.
NVT has an Earnings ESP of +1.94% 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 second-quarter 2026 results on July 31.
Amphenol APH: The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is kept at $8.3 million, implying 46.9% year-over-year growth. For earnings, the consensus mark is pinned at $1.19 per share, suggesting a 46.9% 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 14.1%.
APH has an Earnings ESP of +1.12% and currently sports a Zacks Rank #1. The company is scheduled to declare second-quarter 2026 results on July 29.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
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 Gears Up to Report Q4 Earnings: What's Next for Investors?

Analysts on Wall Street project that Automatic Data Processing (ADP) will announce quarterly earnings of $2.59 per share in its forthcoming report, representing an increase of 14.6% year over year. Revenues are projected to reach $5.43 billion, increasing 5.9% from the same quarter last year.
Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain ADP metrics that are commonly tracked and forecasted by Wall Street analysts.
Based on the collective assessment of analysts, 'Segment revenues- Employer Services' should arrive at $3.67 billion. The estimate points to a change of +5.9% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- Interest on funds held for clients' of $340.62 million. The estimate suggests a change of +10.7% year over year.
The consensus estimate for 'Revenues- PEO revenues' stands at $1.78 billion. The estimate indicates a change of +7% from the prior-year quarter.
It is projected by analysts that the 'Segment revenues- PEO Services' will reach $1.76 billion. The estimate suggests a change of +5.9% year over year.
The consensus among analysts is that 'Revenues- Revenues, other than interest on funds held for clients and PEO revenues' will reach $3.33 billion. The estimate indicates a year-over-year change of +5.4%.
View all Key Company Metrics for ADP here>>>
ADP shares have witnessed a change of +12.3% in the past month, in contrast to the Zacks S&P 500 composite's +0.6% move. With a Zacks Rank #3 (Hold), ADP is expected closely follow the overall market performance in the near term. 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.

What Analyst Projections for Key Metrics Reveal About ADP (ADP) Q4 Earnings

ADP ADP stock has rallied over the past three months. The company’s shares have surged 23%, outperforming the industry’s 1.4% growth and the Zacks S&P 500 Composite's 4.5% appreciation.
3-Month Share Price Performance
Image Source: Zacks Investment Research
Let us delve into the factors that have contributed to the company’s outperformance.
Strong Margins Anchor Profitability
ADP’s top line moved up 3.6% sequentially during the second quarter of fiscal 2026, which then increased exponentially by 10.8% during the third quarter of fiscal 2026. This top-line momentum was accompanied by 7.7% and 28.6% sequential growth in adjusted EBIT in the second and third quarters of fiscal 2026, respectively.
A disproportionate growth between revenues and adjusted EBIT is a clear indication of heightened operational efficiency, as evidenced by a 50 basis points (bps) and 420 bps expansion in adjusted EBIT margins during the aforementioned quarters.
These strong margins translated into significant improvement in net earnings, resulting in impressive bottom-line growth. During the second quarter of fiscal 2026, net earnings increased 4.8% sequentially, resulting in a 5.2% upsurge in the bottom line.
Although similar, the momentum achieved during the third quarter of fiscal 2026 was aggressive, as net earnings spiked 28% sequentially, pushing the bottom line up by 29%. This performance is a testament to ADP’s ability to convert incremental revenue gains into high-margin bottom-line growth, fortifying investor morale in the scalability of its operations.
Dividends Attract Income-Seeking Investors
ADP has a consistent track record of dividend payments. The company paid $1.9 billion, $2.2 billion and $2.4 billion in dividends during fiscal 2023, 2024 and 2025, respectively. During the nine months ended as of March 31, 2026, ADP paid $1.9 billion in dividends, a substantial rise from the year-ago period’s $1.8 billion. Such moves, despite turbulent cash flow, indicate the company’s commitment to returning value to shareholders and underline its confidence in the business.
Solid Balance Sheet Bolsters Liquidity
ADP’s balance sheet reveals that it holds a cash chest of $3.2 billion as of the end of the third quarter of fiscal 2026 compared with no current debt, strengthening its liquidity. It is further justified by a current ratio of 1.04 during the third quarter of fiscal 2026 that improved marginally from the year-ago quarter. While the metric stands lower than the industry average of 1.9, being above 1 bodes well with investors, signaling efficiency in covering short-term obligations.
Zacks Rank & Stocks to Consider
ADP currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Amphenol Corporation APH and MKS Inc. MKSI, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphenol Corporation has a long-term earnings growth expectation of 24%. Amphenol Corporation delivered a trailing four-quarter earnings surprise of 14.1%, on average.
MKS has a long-term earnings growth expectation of 29.9%. MKS delivered a trailing four-quarter earnings surprise of 7.5%, on average.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks 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 Stock Gains 23% in 3 Months: Here's What You Should Know

Intuit Inc. INTU is rapidly transforming from a financial software provider into an artificial intelligence (AI)-powered financial technology platform. Rather than adding AI as a standalone feature, the company is embedding it across TurboTax, QuickBooks, Credit Karma, Mailchimp and Intuit Enterprise Suite to automate financial tasks, improve decision-making and create new growth opportunities.
While the company's long-term AI strategy is gaining momentum, investor sentiment has remained cautious in recent months. The company's shares have declined 27.2% over the past three months compared with the industry's 8.4% fall and the S&P 500 composite's 6.7% rise. Its peers, Automatic Data Processing, Inc. ADP and Paychex Inc. PAYX have gained 27% and 23.2%, respectively, during the same period.
The weakness reflects challenges in the price-sensitive do-it-yourself tax market. Management acknowledged losing share among lower-income filers due to pricing, with TurboTax Online units expected to decline modestly during fiscal 2026.
How AI Is Becoming the Core of Intuit's Strategy
Intuit now describes itself as an AI-driven expert platform rather than a traditional software company. Its AI capabilities already generate recommendations across more than 50 million financial transactions every week, and management expects these AI agents to increasingly automate accounting, tax compliance, payments, cash-flow management and business decision-making, making its software more valuable while improving customer productivity.
Another key advantage is Intuit's ecosystem of approximately 10 million business customers and one million accountants. This large user base provides proprietary financial data that continuously improves AI models, creating a competitive advantage that becomes stronger as adoption expands.
How Is INTU Embedding AI Across Its Verticals?
In May, Intuit launched Analytics AI within Mailchimp, enabling marketers to ask questions in natural language instead of manually building reports. The AI analyzes campaign performance, customer engagement, ecommerce activity and revenue trends before recommending actions businesses should take.
In the same month, the company expanded Intuit Enterprise Suite, its AI-native enterprise resource planning platform for mid-market businesses. The cloud-based platform integrates accounting, payroll, payments, HR, project management, marketing and business intelligence while using conversational AI and virtual agents to automate recurring financial workflows.
Importantly, AI is already translating into measurable business growth. Revenues from QuickBooks Online Advanced and Enterprise Suite increased about 38%, indicating growing customer adoption of Intuit's AI-powered enterprise solutions.
TurboTax is also shifting toward higher-value AI-assisted services. Instead of relying primarily on do-it-yourself tax software, Intuit is expanding TurboTax Live, which combines AI with human tax professionals.
Management expects TurboTax Live revenues to reach approximately $2.8 billion in fiscal 2026, representing 36% growth year over year. Customers are projected to increase 38%, while TurboTax Live is expected to contribute about 53% of total TurboTax revenues. The company estimates the assisted-tax market represents a $37 billion opportunity, highlighting the significant runway for future expansion.
INTU’s Estimate Revision & Valuation
Analysts remain constructive on Intuit's earnings outlook despite near-term headwinds. The Zacks Consensus Estimate for Intuit's fiscal 2026 earnings per share (EPS) has marginally increased to $23.86 over the past month. The 2026 EPS estimate suggests 18.41% growth from the prior-year quarter, supported by continued expansion across the company's AI-driven businesses and higher-value service offerings.
Shares of Intuit are trading at a discount. Based on the forward 12-month Price-to-Sales (P/S) ratio, INTU trades at 3.39X, below the Zacks Computer - Software industry average of 5.24X.
The stock also carries a lower valuation than several industry peers. For comparison, PAYX trades at a forward P/S multiple of 5.95, while ADP trades at 4.41, highlighting Intuit's relatively discounted valuation.
Image Source: Zacks Investment Research
Investment Outlook
While pricing pressure in the DIY tax business and continued AI investments could weigh on near-term results, Intuit appears well-positioned to benefit from the long-term expansion of AI-powered financial services. Investors should monitor AI monetization, TurboTax performance and margin trends for evidence that these initiatives are translating into sustainable earnings growth.
Given the current balance of opportunities and risks, the stock appears well-suited for existing shareholders to hold. Prospective investors, however, may prefer to wait for a more attractive entry point or greater visibility into future growth.
Currently, Intuit carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (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.

Intuit Reinvents Itself With AI: Should You Buy the Stock?

Key Points
Waste Management and ADP aren't flashy, but they offer reliability.
With 45,000 locations, McDonald's can seemingly be found everywhere.
Realty Income provides monthly, not quarterly, dividend payouts.
It doesn't take a lot of money to pull together a decent investment portfolio -- in fact, $1,000 gives you a great start, particularly if you're using a brokerage like Robinhood Markets that offers fractional shares. I think it's one of the easiest ways for investors to start their moneymaking journey.
And if you're looking for dividend stocks, there's a lot to choose from now. Dividend stocks are ideal investments because they pay you to hold them. They are offered by companies that have reliable cash flows, meaning that you can generally count on holding a great income-producing stock for a long period of time.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
If you have $1,000, you can build a quality, long-term portfolio by investing just $250 in each of these four names.
Dividend stock No. 1: McDonald's
McDonald's (NYSE: MCD) is arguably the most popular fast-food chain in the U.S., but its global reach can't be ignored. The company has 13,700 restaurants in the U.S., 10,800 locations in international markets, and has licensed an additional 20,800 through international development licenses. So in addition to finding McDonald's around the corner, you can also get a taste of the Golden Arches in places like Estonia, Slovenia, French Guiana, and Qatar.
Revenue in the first quarter was $6.51 billion, up 9% from a year ago, and net income of $1.98 billion was up 6% year over year. McDonald's has increased its dividend annually for the last 50 years, and its current dividend yield is 2.7%.
Dividend stock No. 2: Waste Management
Why is Waste Management (NYSE: WM) a great buy-and-hold dividend stock? Because people will always need garbage hauled away, no matter what happens to the economy. It's a safe play for the long term.
Waste Management provides residential and commercial garbage pickup, as well as recycling and landfill management. The company averages 19,000 collection routes a day and operates nearly 500 transfer stations, more than 250 landfills, more than 100 recycling facilities, and dozens of medical waste facilities. It's the biggest operator in the waste and recycling industry, capturing $25 billion of the total $130 billion market.
Revenue in the first quarter was $6.22 billion, up from $6.02 billion a year ago. Net income was $723 million, an increase from $637 million a year ago, and cash flow from operations increased 24% to $1.5 billion.
Waste Management stock offers a 1.6% dividend yield, and the company has increased its dividend for 23 consecutive years.
Dividend stock No. 3: Realty Income
Realty Income (NYSE: O) is my go-to dividend stock for two reasons. First, I love that it's a monthly dividend stock -- Realty Income has paid a dividend for 673 consecutive months, or more than 56 years. Monthly dividend stocks mean that you get your yield 12 times a year instead of quarterly, so you can put the money to work much quicker.
Second, it's consistent, having raised its dividend annually for the last 31 years. Realty Income has proven it's a dividend stock you can count on.
Note that this company is a real estate investment trust (REIT), meaning that it owns thousands of properties. REITs have been authorized by Congress to provide retail investors access to the commercial real estate market and are required to return 90% of taxable income to investors as dividends. So Realty Income currently has a healthy dividend yield of 5.1%.
Dividend stock No. 4: Automatic Data Processing
Automatic Data Processing (NASDAQ: ADP) isn't a flashy company, but you're not looking for flash here -- you're looking for a solid way to make money for the long term. And that's what ADP offers.
The company provides cloud-based payroll services and human resources support, including tools to calculate wages, benefits, and direct deposits for employees, while ensuring their clients comply with local, state, and federal laws.
The company is also using artificial intelligence to streamline its work. ADP Assist includes tools such as AI-powered chatbots to allow employees to manage their own accounts. Other tools automate tasks and validate timecards.
Revenue in the fiscal third quarter of 2026 (ending March 31, 2026) was $5.93 billion, up 7% from a year ago. ADP offers a dividend yield of 2.7% and has increased its dividend for 50 consecutive years.
Should you buy stock in McDonald's right now?
Before you buy stock in McDonald's, 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 McDonald's 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 $397,351!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,304,257!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 211% 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.
Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends WM and recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. 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.

Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	ADP	Industry	ADP	Industry	Volume, $
Yesterday 243.6 - 250.8	-10.82	15.18	9.63	1.61	271.12M
Week 240.4 - 256.0	-14.24	21.32	3.14	3.21	1.74B
Month 217.7 - 261.3	-0.05	40.60	5.07	9.34	7.02B
3 Months 195.7 - 261.3	11.36	75.73	7.54	20.85	23.45B
6 Months 188.2 - 261.3	-15.06	68.20	12.96	25.43	61.17B
Year 188.2 - 316.0	-28.99	107.21	26.09	49.26	102.83B
3 years 188.2 - 329.9	-14.38	141.67	36.88	68.73	182.54B
5 years 188.2 - 329.9	5.67	63.62	50.55	95.37	263.34B
All time 21.5 - 294.2	390.22	191.69	—	—	187.76B

Automatic Data Processing, Inc.

Price and volatility history

Risk ratios