Automatic Data Processing Inc ADP
Stock research in plain language · As of Oct 04, 2026 · updated once a week, after the trading week closes
What the company does
Automatic Data Processing Inc is a large-cap company in the Technology sector (Software - Application), with a market value of $102.1B, 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? relatively cheap
Its price-to-earnings (P/E) is 23.5 versus 41.5 for the median of the Technology sector in our universe (46 companies) — relatively cheap.
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 287.60, 12% above the current price (their view, not ours).
The stock sits at 72% of its one-year range (0% = the low, 100% = the high).
The risks
- No risk flags were detected from the data we have.
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 (2.5% a year).
What changed this week
Over the past week the stock fell 2.3% (for comparison: S&P 500 -0.2%, sector ETF XLK +1.8%).
This week's news
- September saw gain of only 29K jobs, Nike turnaround put into question as sales slip finance.yahoo.com · 2026-10-02
- Jobs Market Stays Flat at +29K, Futures Love It finance.yahoo.com · 2026-10-02
- September's jobs report misses: US added just 29,000 jobs, unemployment ticked up finance.yahoo.com · 2026-10-01
- U.S. Stock Futures Rise to Start October Trading finance.yahoo.com · 2026-10-01
- Pre-Market Futures Up on Strong Jobless Claims finance.yahoo.com · 2026-10-01
- Deutsche Bank lists Top European Stock picks for the next twelve months finance.yahoo.com · 2026-10-01
A description of facts from the filings and the market — not investment advice or a recommendation. "Cheap" and "expensive" are always relative to the comparison group.