Automatic Data Processing Inc ADP

What the company does

Automatic Data Processing Inc is a large-cap company in the Technology sector (Software - Application), with a market value of $120.5B, based in the USA.

It employs about 67,000 people and has been listed since Apr 06, 1983.

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).

Cheap or expensive? priced in line with its group

Its price-to-earnings (P/E) is 27.8 versus 38.7 for the median of the Technology sector in our universe (65 companies) — priced in line with its group.

Revenue is growing 7% versus the same quarter last year.

On analysts' next-year forecasts the multiple drops to 22.0 — they expect higher earnings.

The average analyst price target is 290.40, 4% below the current price (their view, not ours).

The stock sits at 96% of its one-year range (0% = the low, 100% = the high).

The risks

• • Quarterly report in 3 days (2026-10-28) — a day the stock can move a lot.

Strengths

• ✅ Profitable — 18 of every 100 dollars of revenue stays as profit.
• ✅ Generates free cash flow — profit becomes cash in the bank.
• ✅ Buys back its shares (2% fewer shares in a year).
• ✅ Pays a dividend (2.2% a year).

What changed this week

Over the past week the stock rose 5.3% (for comparison: S&P 500 -0.4%, sector ETF XLK -0.1%).

It set a new one-year high this week.

This week's news

• Insights Into ADP (ADP) Q1: Wall Street Projections for Key Metrics finance.yahoo.com · 2026-10-23
  What the article says

  In its upcoming report, Automatic Data Processing (ADP) is predicted by Wall Street analysts to post quarterly earnings of $2.78 per share, reflecting an increase of 11.7% compared to the same period last year. Revenues are forecasted to be $5.47 billion, representing a year-over-year increase of 5.6%. The consensus… source ↗

• ADP Gears Up to Report Q1 Earnings: What's Next for Investors? finance.yahoo.com · 2026-10-23
  What the article says

  ADP ADP is scheduled to release first-quarter fiscal 2027 results on Oct. 28, 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 2.1%. Automatic Data Processing, Inc. Price and EPS Surprise Automatic Data… source ↗

• Intuit (INTU) vs. PYPL and XYZ: Can an 81% Gross Margin and $8.6B Free Cash Flow Justify a Rebound? finance.yahoo.com · 2026-10-22
  What the article says

  Is INTU a good stock to buy? We came across a bullish thesis on Intuit Inc. on Astute Optics - US's Substack. In this article, we will summarize the bulls' thesis on INTU. Intuit Inc.'s share was trading at $335.61as of October 21st 2026. INTU's trailing and forward P/E were 17.76 and 12.66 respectively according to… source ↗

• Automatic Data Processing (ADP) Stock Could Trade At A 17% Premium On Cash Flow finance.yahoo.com · 2026-10-22
  What the article says

  Automatic Data Processing has delivered a solid run over the past several years, which now puts a spotlight on whether the current share price lines up with the cash the business is expected to generate. With the stock recently closing at US$294.50, the key question is how that price compares with what its future cash… source ↗

• Should iShares Morningstar Mid-Cap Value ETF (IMCV) Be on Your Investing Radar? finance.yahoo.com · 2026-10-22
  What the article says

  If you're interested in broad exposure to the Mid Cap Value segment of the US equity market, look no further than the iShares Morningstar Mid-Cap Value ETF (IMCV), a passively managed exchange traded fund launched on June 28, 2004. The fund is sponsored by Blackrock. It has amassed assets over $1.20 billion, making it… source ↗

• Will Workday's C1.ai Acquisition Boost Its Enterprise AI Position? finance.yahoo.com · 2026-10-21
  What the article says

  Workday, Inc. WDAY has announced a definitive agreement to acquire C1.ai, an agentic identity platform, to strengthen its artificial intelligence (AI)-driven enterprise offerings. The acquisition is expected to enhance Workday's ability to manage identity governance and access permissions for employees and AI agents… source ↗

What changed since last week

• Valuation moved from "relatively cheap" to "priced in line with its group".

• The price rose 5.3% since the last summary.