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/ADP
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Automatic Data Processing Inc

Automatic Data Processing Inc

ADP
$255.27USD↓-0.50%-1.30 today

MARKET CAP

102.0B

P/E (TTM)

23.9x

FWD P/E

20.9x

DAY RANGE

$251 – $261

52W RANGE

$188
$316

AI Summary

Stalk
Buy NowHigh

ADP is in a Stage 2 advancing trend with a primary Lockout Rally actively driving forced short covering and reclaiming EMAs. Medium-term bias remains bullish, backed by clear higher highs and higher lows. Short-term bias is bullish under the Lockout Rally override, despite overbought RSI and elevated options readings. Execution is Buy Now to participate in continuation above the breakout zone near prior resistance around 260, capturing forced demand dynamics.

  • ↑Q3 revenue grew 7% to $4.2B; adjusted EPS +10%; EBIT margin +80bps
  • ↑$6B share buyback and $1.34–$1.35B client funds interest guidance boost returns
  • ↓Valuation appears stretched, raising overpricing concerns
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

Automatic Data Processing, Inc. (NASDAQ: ADP) is a leading provider in the Human Capital Management (HCM) sector, offering comprehensive payroll and related services to a diverse client base of over 1.1 million worldwide. Positioned as a dominant player, ADP integrates advanced technology and AI to streamline payroll processing and enhance overall workforce management solutions, while adeptly navigating regulatory complexities.

Bull says

  • ↑Q3 revenue grew 7% to $4.2B; adjusted EPS +10%; EBIT margin +80bps
  • ↑$6B share buyback and $1.34–$1.35B client funds interest guidance boost returns
  • ↑AI-driven ADP Assist handled 5.5M client chats, saving 30 min per payroll
  • ↑Record-high client retention underlines sticky recurring revenue
  • ↑High profitability and attractive dividend yield support income appeal
  • ↑Positive analyst revisions and rate sensitivity suggest upside

Bear says

  • ↓Valuation appears stretched, raising overpricing concerns
  • ↓Growth outlook dimmed by weak momentum factors
  • ↓Negative price momentum and high short interest heighten downside risk
  • ↓Software integration pressures margins and elevates leverage risk
  • ↓Macroeconomic headwinds in PEO and international markets threaten revenue
  • ↓Weak balance-sheet signals and negative revisions temper optimism

Investment themes with ADP

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM
Quality↑ +0.54%

Companies with strong fundamentals and stability

NVDA · AAPL · MSFT

Earnings Call · Q3 2026 · Mgmt. Guidance

Updated 04-30-2026bullish

Transcript signals

Bull points

  • This morning, we reported another strong quarter of results with revenue growth, margin expansion, and EPS growth all coming in ahead of our expectations and reflecting the significant progress we are making across our strategic priorities at a pivotal time for our industry.
  • Both our employer services retention rate and our overall client satisfaction levels reached new record highs for a third quarter.
  • Our ADP Assist payroll agents have saved an average of 30 minutes per payroll.

Bear points

  • PEO margins decreased 120 basis points in Q3 driven mainly by zero-margin pass-through growth, higher SUI costs, and higher selling expenses.
Read full transcript analysis ›