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

Automatic Data Processing (NASDAQ:ADP) updated its FY 2027 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) 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.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on ADP. Guggenheim upped their target price on Automatic Data Processing from $270.00 to $300.00 and gave the stock a “buy” rating in a research note on Thursday. Morgan Stanley decreased their price objective on Automatic Data Processing from $311.00 to $274.00 and set an “equal weight” rating on the stock in a report on Tuesday, April 28th. BMO Capital Markets lifted their target price on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a “market perform” rating in a research note on Wednesday. Argus dropped their price objective on Automatic Data Processing from $300.00 to $240.00 and set a “buy” rating for the company in a report on Tuesday, May 5th. Finally, Robert W. Baird lowered their price objective on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $265.71.

Automatic Data Processing Stock Performance

NASDAQ:ADP traded down $12.97 during mid-day trading on Thursday, hitting $260.40. 1,115,909 shares of the company traded hands, compared to its average volume of 3,146,009. The stock’s fifty day moving average price is $234.18 and its 200-day moving average price is $224.32. The firm has a market cap of $104.09 billion, a price-to-earnings ratio of 24.35 and a beta of 0.83. Automatic Data Processing has a one year low of $188.16 and a one year high of $315.26. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.63.

Automatic Data Processing (NASDAQ:ADP) last issued its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating analysts’ consensus estimates of $2.59 by $0.05. The firm had revenue of $5.47 billion during the quarter, compared to analyst estimates of $5.44 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.The business’s quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter last year, the business posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. Research analysts anticipate that Automatic Data Processing will post 11.08 earnings per share for the current fiscal year.

More Automatic Data Processing News

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

• Positive Sentiment: Quarterly results beat expectations: ADP reported fiscal Q4 earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue rose 6.8% year over year to $5.47 billion, exceeding forecasts of $5.44 billion. Earnings increased from $2.26 per share in the prior-year quarter, supported by broad-based growth, client funds income and margin improvement. ADP Q4 Earnings Beat Estimates
• Positive Sentiment: Fiscal 2027 outlook remains constructive: Management guided to earnings per share of $12.12-$12.34 and revenue of $23.0-$23.3 billion, broadly in line with Wall Street expectations. The company expects continued growth in employer services and human resources outsourcing. ADP Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Analysts raised price targets: Guggenheim increased its target from $270 to $300 and upgraded ADP to “buy.” Wells Fargo raised its target from $248 to $283 while maintaining an “equal weight” rating, and BMO lifted its target from $248 to $305 but retained a “market perform” view. These revisions indicate improved earnings expectations, although ratings remain mixed.
• Neutral Sentiment: Post-earnings valuation debate: Recent commentary says the earnings-driven rally has closed much of ADP’s valuation discount. Some analysts still view the stock as attractive, but the stronger share price leaves less room for upside if growth or guidance moderates. ADP Post-Earnings Valuation Analysis
• Negative Sentiment: Broader market weakness is weighing on the stock: A sharp oil-price spike tied to renewed U.S.-Iran tensions pressured the Nasdaq and broader equities ahead of the Federal Reserve’s rate decision, potentially offsetting ADP’s company-specific positives.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Reston Wealth Management LLC raised its holdings in shares of Automatic Data Processing by 5.8% during the fourth quarter. Reston Wealth Management LLC now owns 892 shares of the business services provider’s stock valued at $229,000 after acquiring an additional 49 shares during the last quarter. LMR Partners LLP lifted its position in Automatic Data Processing by 1.7% in the second quarter. LMR Partners LLP now owns 3,047 shares of the business services provider’s stock valued at $940,000 after buying an additional 50 shares during the last quarter. First Foundation Advisors boosted its position in shares of Automatic Data Processing by 5.9% during the 3rd quarter. First Foundation Advisors now owns 1,019 shares of the business services provider’s stock worth $299,000 after purchasing an additional 57 shares during the period. Ausdal Financial Partners Inc. lifted its stake in Automatic Data Processing by 7.7% during the third quarter. Ausdal Financial Partners Inc. now owns 813 shares of the business services provider’s stock worth $238,000 after purchasing an additional 58 shares in the last quarter. Finally, Great Valley Advisor Group Inc. boosted its position in shares of Automatic Data Processing by 2.1% during the fourth quarter. Great Valley Advisor Group Inc. now owns 2,824 shares of the business services provider’s stock worth $727,000 after buying an additional 59 shares during the period. 80.03% of the stock is owned by institutional investors and hedge funds.

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.