Automatic Data Processing (ADP) Expected to Announce Earnings on Wednesday

Automatic Data Processing (NASDAQ:ADP) is projected to post its Q2 2026 results before the market opens on Wednesday, January 28th. Analysts expect the company to announce earnings of $2.58 per share and revenue of $5.3376 billion for the quarter. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS. Individuals may review the information on the company’s upcoming Q2 2026 earning report for the latest details on the call scheduled for Wednesday, January 28, 2026 at 8:30 AM ET.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, October 29th. The business services provider reported $2.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.44 by $0.05. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The business had revenue of $5.18 billion during the quarter, compared to the consensus estimate of $5.14 billion. During the same period in the previous year, the firm posted $2.33 earnings per share. The business’s revenue was up 7.1% on a year-over-year basis. On average, analysts expect Automatic Data Processing to post $10 EPS for the current fiscal year and $11 EPS for the next fiscal year.

Automatic Data Processing Stock Performance

Shares of ADP stock opened at $255.10 on Wednesday. Automatic Data Processing has a 12-month low of $247.18 and a 12-month high of $329.93. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05. The firm has a market capitalization of $103.18 billion, a price-to-earnings ratio of 25.18 and a beta of 0.86. The business has a 50 day simple moving average of $258.05 and a 200 day simple moving average of $280.47.

Automatic Data Processing Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Friday, March 13th will be given a dividend of $1.70 per share. This represents a $6.80 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date is Friday, March 13th. Automatic Data Processing’s payout ratio is 67.13%.

Automatic Data Processing declared that its board has initiated a stock buyback program on Wednesday, January 14th that allows the company to repurchase $6.00 billion in shares. This repurchase authorization allows the business services provider to buy up to 5.8% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Analyst Ratings Changes

A number of brokerages recently weighed in on ADP. Citigroup began coverage on shares of Automatic Data Processing in a research note on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price objective on the stock. Wells Fargo & Company lowered their target price on shares of Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a research note on Thursday, October 30th. JPMorgan Chase & Co. dropped their price target on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Automatic Data Processing in a report on Monday, December 29th. Finally, Jefferies Financial Group reiterated an “underperform” rating and set a $230.00 price objective (down previously from $245.00) on shares of Automatic Data Processing in a research note on Tuesday, December 16th. Two analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Automatic Data Processing has a consensus rating of “Hold” and a consensus target price of $306.42.

Insider Buying and Selling

In other news, VP Christopher D’ambrosio sold 543 shares of the stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $262.29, for a total transaction of $142,423.47. Following the completion of the sale, the vice president owned 9,998 shares in the company, valued at approximately $2,622,375.42. This represents a 5.15% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP David Kwon sold 806 shares of the firm’s stock in a transaction on Monday, January 12th. The stock was sold at an average price of $264.80, for a total value of $213,428.80. Following the sale, the vice president directly owned 11,187 shares of the company’s stock, valued at approximately $2,962,317.60. This represents a 6.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 2,249 shares of company stock worth $589,852 over the last quarter. Insiders own 0.20% of the company’s stock.

Hedge Funds Weigh In On Automatic Data Processing

Several institutional investors and hedge funds have recently added to or reduced their stakes in ADP. Advisory Services Network LLC lifted its holdings in shares of Automatic Data Processing by 36.3% in the third quarter. Advisory Services Network LLC now owns 10,696 shares of the business services provider’s stock valued at $3,139,000 after purchasing an additional 2,850 shares in the last quarter. San Luis Wealth Advisors LLC lifted its stake in Automatic Data Processing by 39.0% in the 3rd quarter. San Luis Wealth Advisors LLC now owns 1,173 shares of the business services provider’s stock worth $344,000 after acquiring an additional 329 shares in the last quarter. KDT Advisors LLC boosted its position in Automatic Data Processing by 23.1% during the 3rd quarter. KDT Advisors LLC now owns 2,679 shares of the business services provider’s stock worth $786,000 after acquiring an additional 502 shares during the period. Financial Engines Advisors L.L.C. grew its stake in Automatic Data Processing by 4.0% during the 3rd quarter. Financial Engines Advisors L.L.C. now owns 15,633 shares of the business services provider’s stock valued at $4,588,000 after acquiring an additional 600 shares in the last quarter. Finally, OmniStar Financial Group Inc. grew its stake in Automatic Data Processing by 19.0% during the 3rd quarter. OmniStar Financial Group Inc. now owns 9,535 shares of the business services provider’s stock valued at $2,799,000 after acquiring an additional 1,523 shares in the last quarter. 80.03% of the stock is currently owned by hedge funds and other institutional investors.

About Automatic Data Processing

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP’s product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.