Automatic Data Processing, Inc. is participating. (ADP), headquartered in Roseland, New Jersey, provides cloud-based human capital management (HCM) solutions worldwide. With a market capitalization of US$117.8 billion, automated data processing powers the Employer Services and Professional Employer Organizations (PEO) sectors.
Giant HCM is set to announce its first-quarter results before markets open on Wednesday, October 29. Prior to the event, analysts expected ADP to report adjusted earnings of $2.44 per share, up 4.7% from the $2.33 per share reported in the same quarter last year. On a more positive note, the company has a strong history of surprising profits. It has topped the Street’s final estimates in each of the past four quarters.
For the full year of fiscal 2026, ADP’s adjusted EPS is expected to be $10.92, up 9.1% from the $10.01 reported in 2025. In fiscal 2027, its earnings are expected to rise 9.5% year over year to $11.96 per share.
ADP shares have fallen by 65 basis points over the past 52 weeks, significantly underperforming the Technology Sector SPDR Fund (XLK) by 25.9% and the S&P 500 Index (SPX) returns by 16.3% over the same time frame.
Automatic Data stock prices noted a marginal rise in the trading session following the release of strong Q4 results on July 30. The company ended fiscal year 2025 on a strong note. Thanks to the flexibility of its business model, the company has been able to navigate uncertainties and achieve impressive growth. Overall, ADP’s net revenue for the quarter was $5.1 billion, up 7.5% year over year and 1.5% above Street expectations. Furthermore, adjusted EPS rose 8.1% year-over-year to $2.26, beating consensus estimates by 1.8%.
However, analysts remain cautious about the stock’s future. ADP maintains the consensus rating of “Hold.” Of the 17 analysts covering the stock, opinions include three “strong buys,” 13 “holds,” and one “strong sell.” The average price target of $318.54 indicates 11.4% upside potential from current price levels.
On the date of publication, Aditya Sarawgi had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data contained in this article are for informational purposes only. This article was originally published on parchart.com
The post What to Expect From Automatic Data Processing’s Next Quarterly Earnings Report first appeared on Investorempires.com.
