Research Analysts Offer Predictions for ADP Q3 Earnings

Automatic Data Processing, Inc. (NASDAQ:ADP) – Stock analysts at Zacks Research cut their Q3 2025 earnings estimates for shares of Automatic Data Processing in a research note issued to investors on Wednesday, February 19th. Zacks Research analyst R. Department now anticipates that the business services provider will post earnings of $2.94 per share for the quarter, down from their previous estimate of $3.02. 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 Q4 2025 earnings at $2.28 EPS, FY2025 earnings at $9.90 EPS, Q2 2026 earnings at $2.57 EPS, Q4 2026 earnings at $2.70 EPS and FY2026 earnings at $10.72 EPS.

Automatic Data Processing (NASDAQ:ADP) last announced its quarterly earnings data on Wednesday, January 29th. The business services provider reported $2.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.30 by $0.05. Automatic Data Processing had a net margin of 19.76% and a return on equity of 80.86%.

ADP has been the topic of several other reports. StockNews.com lowered shares of Automatic Data Processing from a “buy” rating to a “hold” rating in a research report on Wednesday, February 5th. TD Cowen boosted their target price on shares of Automatic Data Processing from $276.00 to $285.00 and gave the stock a “hold” rating in a research report on Friday, November 1st. Jefferies Financial Group boosted their target price on shares of Automatic Data Processing from $290.00 to $305.00 and gave the stock a “hold” rating in a research report on Thursday, January 30th. Royal Bank of Canada reiterated a “sector perform” rating and issued a $315.00 price objective on shares of Automatic Data Processing in a research report on Thursday, January 30th. Finally, Barclays boosted their price objective on shares of Automatic Data Processing from $325.00 to $350.00 and gave the stock an “overweight” rating in a research report on Monday, February 3rd. Two analysts have rated the stock with a sell rating, eight have given a hold rating and two have issued a buy rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $293.55.

Automatic Data Processing Price Performance

Shares of NASDAQ ADP opened at $311.97 on Friday. The firm has a market capitalization of $127.12 billion, a P/E ratio of 32.53, a PEG ratio of 3.65 and a beta of 0.79. Automatic Data Processing has a one year low of $231.27 and a one year high of $313.72. The company’s fifty day moving average is $298.44 and its two-hundred day moving average is $289.74. The company has a debt-to-equity ratio of 0.59, a quick ratio of 1.00 and a current ratio of 1.00.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 1st. Stockholders of record on Friday, March 14th will be paid a dividend of $1.54 per share. This represents a $6.16 dividend on an annualized basis and a dividend yield of 1.97%. The ex-dividend date is Friday, March 14th. Automatic Data Processing’s dividend payout ratio is currently 64.23%.

Insider Activity

In other news, VP Jonathan S. Lehberger sold 2,324 shares of the stock in a transaction that occurred on Monday, February 3rd. The stock was sold at an average price of $303.30, for a total transaction of $704,869.20. Following the completion of the transaction, the vice president now directly owns 3,063 shares in the company, valued at approximately $929,007.90. This represents a 43.14 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, VP Brian L. Michaud sold 362 shares of the stock in a transaction that occurred on Thursday, January 2nd. The shares were sold at an average price of $293.83, for a total value of $106,366.46. Following the transaction, the vice president now owns 13,706 shares of the company’s stock, valued at approximately $4,027,233.98. This trade represents a 2.57 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 5,478 shares of company stock valued at $1,617,241 in the last 90 days. 0.21% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Automatic Data Processing

Several large investors have recently added to or reduced their stakes in the company. Foundations Investment Advisors LLC increased its position in Automatic Data Processing by 2.9% in the third quarter. Foundations Investment Advisors LLC now owns 4,529 shares of the business services provider’s stock worth $1,253,000 after buying an additional 126 shares during the period. Sequoia Financial Advisors LLC increased its holdings in shares of Automatic Data Processing by 11.5% during the third quarter. Sequoia Financial Advisors LLC now owns 8,932 shares of the business services provider’s stock valued at $2,473,000 after purchasing an additional 922 shares during the period. Elevated Capital Advisors LLC acquired a new position in shares of Automatic Data Processing during the third quarter valued at $208,000. Monte Financial Group LLC increased its holdings in shares of Automatic Data Processing by 1.1% during the third quarter. Monte Financial Group LLC now owns 16,634 shares of the business services provider’s stock valued at $4,603,000 after purchasing an additional 173 shares during the period. Finally, McAdam LLC increased its holdings in shares of Automatic Data Processing by 6.7% during the third quarter. McAdam LLC now owns 1,794 shares of the business services provider’s stock valued at $496,000 after purchasing an additional 112 shares during the period. 80.03% of the stock is currently owned by institutional investors.

Automatic Data Processing Company Profile

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.