Automatic Data Processing (NASDAQ:ADP) Releases FY 2027 Earnings Guidance

Automatic Data Processing (NASDAQ:ADP) issued an update on its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 12.120-12.340 for the period, compared to the consensus EPS estimate of 12.190. The company issued revenue guidance of $23.0 billion-$23.3 billion, compared to the consensus revenue estimate of $23.1 billion.

Analysts Set New Price Targets

Several research analysts have weighed in on ADP shares. Weiss Ratings upgraded shares of Automatic Data Processing from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, July 21st. Morgan Stanley upped their price target on shares of Automatic Data Processing from $240.00 to $286.00 and gave the stock an “equal weight” rating in a research note on Thursday. Stifel Nicolaus lifted their price objective on Automatic Data Processing from $260.00 to $285.00 and gave the company a “hold” rating in a research report on Thursday. Mizuho dropped their target price on Automatic Data Processing from $332.00 to $305.00 in a research report on Thursday, April 30th. Finally, Robert W. Baird lowered their price target on Automatic Data Processing from $300.00 to $270.00 in a research note on Thursday, April 30th. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $272.43.

Automatic Data Processing Stock Performance

ADP opened at $263.87 on Friday. Automatic Data Processing has a 12-month low of $188.16 and a 12-month high of $315.26. The stock’s 50 day moving average price is $235.06 and its two-hundred day moving average price is $224.30. The firm has a market capitalization of $105.48 billion, a P/E ratio of 24.12 and a beta of 0.83. The company has a quick ratio of 1.04, a current ratio of 1.05 and a debt-to-equity ratio of 0.82.

Automatic Data Processing (NASDAQ:ADP) last posted its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.59 by $0.05. Automatic Data Processing had a net margin of 20.11% and a return on equity of 71.34%. The company had revenue of $5.47 billion for the quarter, compared to the consensus estimate of $5.44 billion. During the same quarter in the previous year, the firm posted $2.26 EPS. The business’s revenue was up 6.8% compared to the same quarter last year. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. On average, equities analysts forecast that Automatic Data Processing will post 12.22 earnings per share for the current year.

Automatic Data Processing News Roundup

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Quarterly results exceeded expectations. ADP reported fiscal Q4 earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue reached $5.47 billion, ahead of the $5.44 billion forecast. Revenue increased 6.8% year over year, supported by growth in employer services and human resources outsourcing. ADP Q4 Earnings Beat Estimates on Revenue Growth, Margin Gains
• Positive Sentiment: Management expects continued growth. ADP said revenue and earnings should continue rising in fiscal 2027, with client-funds income, productivity improvements and margin gains providing additional support. The company’s fiscal 2027 EPS guidance is $12.12 to $12.34. ADP Targets More Gains Ahead After Quarterly Growth
• Positive Sentiment: Analysts raised price targets. Guggenheim lifted its target to $300 and upgraded ADP to “buy,” while BMO Capital Markets raised its target to $305, the highest among the latest revisions. Citi, Morgan Stanley, Stifel and Wells Fargo also increased targets to $287, $286, $285 and $283, respectively. The revisions signal greater confidence in ADP’s earnings outlook following the results.
• Neutral Sentiment: Analyst ratings remain mixed. BMO maintained “market perform,” while Citi, Morgan Stanley, Stifel and Wells Fargo retained neutral, equal-weight or hold ratings. This suggests analysts see upside but believe much of the post-earnings improvement may already be reflected in the stock.
• Negative Sentiment: Valuation and market risks remain. ADP trades at roughly 24 times earnings after a substantial five-year advance, potentially limiting near-term upside. Broader market volatility, including pressure from higher oil prices, geopolitical tensions and interest-rate uncertainty, could also weigh on shares despite the company’s defensive business model. Automatic Data Processing Stock Looks Reasonable After Its 44% Five Year Run

Institutional Trading of Automatic Data Processing

Large investors have recently bought and sold shares of the stock. Imprint Wealth LLC bought a new position in Automatic Data Processing during the 3rd quarter valued at about $25,000. Prosperity Bancshares Inc acquired a new position in Automatic Data Processing during the 4th quarter worth $33,000. Wilkerson Advisory Group LLC bought a new position in Automatic Data Processing in the 4th quarter valued at $36,000. Wealth Watch Advisors INC acquired a new stake in shares of Automatic Data Processing in the 3rd quarter valued at $43,000. Finally, Kemnay Advisory Services Inc. acquired a new stake in shares of Automatic Data Processing in the 4th quarter valued at $41,000. 80.03% of the stock is currently owned by 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.