What is Zacks Research’s Forecast for ADP Q2 Earnings?

Automatic Data Processing, Inc. (NASDAQ:ADP) – Investment analysts at Zacks Research reduced their Q2 2026 earnings per share estimates for shares of Automatic Data Processing in a report released on Tuesday, November 18th. Zacks Research analyst Team now expects that the business services provider will post earnings per share of $2.58 for the quarter, down from their prior estimate of $2.61. The consensus estimate for Automatic Data Processing’s current full-year earnings is $9.93 per share. Zacks Research also issued estimates for Automatic Data Processing’s Q3 2027 earnings at $3.12 EPS.

Automatic Data Processing (NASDAQ:ADP) last issued its earnings results on Wednesday, October 29th. The business services provider reported $2.49 earnings per share for the quarter, topping analysts’ consensus estimates of $2.44 by $0.05. The business had revenue of $5.18 billion during the quarter, compared to analyst estimates of $5.14 billion. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.Automatic Data Processing’s revenue was up 7.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.33 EPS. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS.

ADP has been the subject of a number of other reports. UBS Group cut their price objective on Automatic Data Processing from $315.00 to $290.00 and set a “neutral” rating for the company in a research note on Wednesday, September 17th. Dbs Bank raised shares of Automatic Data Processing to a “hold” rating in a research note on Thursday, August 21st. JPMorgan Chase & Co. lowered their target price on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a research note on Thursday, October 30th. Citigroup started coverage on Automatic Data Processing in a report on Thursday, October 23rd. They set a “neutral” rating and a $303.00 price target on the stock. Finally, Morgan Stanley upped their price objective on Automatic Data Processing from $310.00 to $311.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 31st. Three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $312.67.

Automatic Data Processing Stock Performance

Shares of NASDAQ:ADP traded up $0.23 during trading on Thursday, hitting $250.64. The company’s stock had a trading volume of 203,108 shares, compared to its average volume of 1,779,601. The firm has a market cap of $101.37 billion, a price-to-earnings ratio of 24.73, a P/E/G ratio of 2.39 and a beta of 0.86. 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 company has a 50-day moving average of $277.59 and a 200-day moving average of $297.59. Automatic Data Processing has a 12 month low of $247.18 and a 12 month high of $329.93.

Automatic Data Processing Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 1st. Stockholders of record on Friday, December 12th will be issued a $1.70 dividend. The ex-dividend date is Friday, December 12th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 2.7%. This is a boost from Automatic Data Processing’s previous quarterly dividend of $1.54. Automatic Data Processing’s dividend payout ratio (DPR) is 67.13%.

Insider Activity

In other news, VP Michael A. Bonarti sold 8,728 shares of the stock in a transaction on Tuesday, September 9th. The shares were sold at an average price of $298.43, for a total value of $2,604,697.04. Following the sale, the vice president owned 80,531 shares in the company, valued at $24,032,866.33. This represents a 9.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP David Foskett sold 1,373 shares of the business’s stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $296.57, for a total transaction of $407,190.61. Following the completion of the transaction, the vice president owned 11,781 shares of the company’s stock, valued at approximately $3,493,891.17. This represents a 10.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 52,516 shares of company stock worth $15,632,410 over the last ninety days. 0.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Automatic Data Processing

Several institutional investors have recently bought and sold shares of ADP. Brighton Jones LLC raised its holdings in Automatic Data Processing by 92.1% in the 4th quarter. Brighton Jones LLC now owns 10,026 shares of the business services provider’s stock valued at $2,935,000 after acquiring an additional 4,808 shares during the last quarter. Bison Wealth LLC lifted its holdings in Automatic Data Processing by 22.8% during the 4th quarter. Bison Wealth LLC now owns 3,664 shares of the business services provider’s stock worth $1,073,000 after buying an additional 681 shares in the last quarter. MWA Asset Management raised its position in Automatic Data Processing by 5.2% in the 1st quarter. MWA Asset Management now owns 2,611 shares of the business services provider’s stock valued at $798,000 after purchasing an additional 130 shares in the last quarter. Crestwood Advisors Group LLC lifted its position in shares of Automatic Data Processing by 3.1% during the 1st quarter. Crestwood Advisors Group LLC now owns 4,654 shares of the business services provider’s stock worth $1,422,000 after purchasing an additional 140 shares during the last quarter. Finally, Grove Street Fiduciary LLC acquired a new position in Automatic Data Processing in the first quarter valued at approximately $956,000. 80.03% of the stock is owned by institutional investors and hedge funds.

About Automatic Data Processing

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.