Zacks Investment Research·4d ago
Big Week of Jobs & Inflation Data, Micron EarningsWith oil and bond prices climbing again, market indexes are lower ahead of a big week of data.
ADP's core HCM and payroll franchise continues to deliver steady mid-single-digit revenue growth (6.8% in 2026Q4) and robust cash generation, with cumulative operating cash flow of $12.5B exceeding net income of $10.5B over the last ten quarters. However, gros...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has been stable at 6.8% in 2026Q4, but gross margin volatility (ranging from 45.2% to 53.0% over ten quarters) and an operating margin swing from -2.4% to 30.1% suggest inconsistent profitability.
ADP's focus on AI-enabled human capital management tools is driving growth and improving operational efficiency.
ADP raised its fiscal 2026 guidance for revenue and adjusted EPS growth, signaling confidence in its business model.
ADP's trailing and forward P/E ratios indicate a reasonable valuation, making it appealing to investors.
Trailing total returns as of 10/3/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 29, 2026 | $2.64+1.9% vs $2.59 | $5.5B+0.7% vs $5.4B |
Q2 2026 Apr 29, 2026 | $3.37+2.1% vs $3.30 | $5.9B+1.5% vs $5.9B |
Q1 2026 Jan 28, 2026 | $2.62+1.9% vs $2.57 | $5.4B+0.4% vs $5.3B |
Q4 2025 Oct 29, 2025 | $2.49+2.0% vs $2.44 | $5.2B+0.8% vs $5.1B |
With oil and bond prices climbing again, market indexes are lower ahead of a big week of data.
ROSELAND, N.J., Sept. 28, 2026 /PRNewswire/ -- ADP (Nasdaq: ADP), a global leader in HR and payroll solutions, is scheduled to release its financial results for the first fiscal quarter ending September 30, 2026 before the opening of the Nasdaq on October 28, 2026.
Dividend Kings are underperforming SPY in September, with a -4.22% average return versus SPY's marginal gain. Despite aggregate weakness, 29 Dividend Kings appear both undervalued and offer a long-term expected return of at least 10%. Recent dividend increases and higher projected earnings growth have modestly improved the Kings' average dividend growth rate to 4.49%.
In a big blow for advocates of lowering interest rates, bond yields continue to escalate in Friday's pre-market. We normally don't talk about the 30-year bond yield, but this has risen to 20+ year highs this morning: +5.480%.
Benchmark ADP against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Automatic Data Processing, Inc. (ADP)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $257.68 | $103B | 23.53 | 6.74% | 20.11% | 72.24% | 2.55% | |
| $98.94 | $35.18B | 20.23 | 16.88% | 27.35% | 47.11% | — | |
| $33.29 | $5.64B | 10.64 | 6.56% | 11.1% | 22.91% | — | |
| $220.99 | $12.06B | 27.35 | 8.95% | 22.78% | 40.43% | — | |
| $144.47 | $7.74B | 29.36 | 11.04% | 15.23% | 23.44% | — | |
| $169.10 | $5.76B | 19.96 | 1.24% | 12.56% | 28.22% | — |
Automatic Data Processing, Inc. (ADP) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Automatic Data Processing, Inc. (ADP) SEC filings — annual & quarterly reports (10-K, 10-Q)
Jul 29, 2026·SEC
Jun 26, 2026·SEC
May 7, 2026·SEC
Get notified when ADP posts new earnings or crosses analyst targets
Free. No account needed. Unsubscribe any time.
Automatic Data Processing, Inc. (ADP) stock FAQ — growth, dividends, profitability & financials explained
Automatic Data Processing, Inc. (ADP) reported $21.95B in revenue for fiscal year 2026. This represents a 434% increase from $4.11B in 1997.
Automatic Data Processing, Inc. (ADP) grew revenue by 6.7% over the past year. This is steady growth.
Yes, Automatic Data Processing, Inc. (ADP) is profitable, generating $4.41B in net income for fiscal year 2026 (20.1% net margin).
Yes, Automatic Data Processing, Inc. (ADP) pays a dividend with a yield of 2.55%. This makes it attractive for income-focused investors.
Automatic Data Processing, Inc. (ADP) has a return on equity (ROE) of 72.2%. This is excellent, indicating efficient use of shareholder capital.
Automatic Data Processing, Inc. (ADP) generated $4.98B in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
