Loading…
Automatic Data Processing
NASDAQ: ADP Technology IT 🔎 Screen
S&P 500 Nasdaq 100
🏹 Trader: 🎯 Near 52W High | BRS 71 Forming View all →
$112.9B
Market Cap
30.9
P/E
2.60
PEG
60.7%
ROCE
72.2%
ROE
0.90
D/E
26.3%
OPM
-4.3%
% from 52W High
67
α RS
🔍 ADP is showing a high-conviction setup because it matches 13 of 37 tracked screener presets, RS Rating is 67, and an ECS of 53.8 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating ECS
Sources
Conviction 13/37 · RS Rating 67 · ECS 53.8
⚖️ Compare 🔒 Generate Report 🔒 Research Packet 📚 Guides
🌏 Global Investor Returns
Currency-adjusted total returns for ADP including FX impact
🌏
Click 🌏 Returns tab to load data
📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Automatic Data Processing, Inc. provides cloud-based human capital management (HCM) solutions worldwide.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
Loading…
⭐ Superinvestors Holding ADP
View All Superinvestors →
Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 646.8K $131.4M 0.21% Mar 2026
Steve Cohen Point72 Asset Management 56.7K $11.5M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔒
Premium Feature
AI-generated 10-section company profile — business model, financials, strengths, risks & management quality
Upgrade to Premium
Already a member? Log in
📐
3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
Open Model →
🎙 Management Tone Confident Specific ↑ Improving 5 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q4 2026
Revenue
$5.5B
+7% YoY
Operating Income (Adjusted EBIT)
$1.4B
+13% YoY
Operating Margin (Adjusted EBIT Margin)
25.1%
+140bps YoY
Net Income
$1.0B
+7% YoY
What Went Right
  • Q4 revenue grew 7% to $5.5B with adjusted EBIT margin expansion of 140bps.
  • FY26 Employer Services bookings rose 6% to $2.2B; retention held at 92.1% with record client satisfaction.
  • AI traction: 3.1M users had 12M ADP Assist conversations, and Lyric live clients were up 94% YoY.
What to Watch
  • PEO segment margin contracted 100bps in Q4 on zero-margin pass-through growth and higher workers' comp/selling costs.
  • FY27 ES retention is guided down 10-30bps from 92.1% due to near-record levels and out-of-business risk.
  • FX turns from roughly a 1pt tailwind in FY26 to a slight headwind in FY27, and client funds balance growth is expected to slow from 7% to 3%-4%.
Management Guidance
  • FY27 consolidated revenue growth: 5%-6%.
  • FY27 adjusted EBIT margin expansion: 70-90bps.
  • FY27 adjusted EPS growth: 9%-11%; ES bookings +4%-7%; PEO revenues +5%-7%.
Investor Lens
The thesis looks stronger after this call. Q4 finished at the high end of guidance with 7% revenue growth, 140bps margin expansion, and 17% adjusted EPS growth, supported by a record bookings year and AI-driven productivity tools. Management's FY27 guide is broadly consistent with FY26, but PEO margin pressure, a possible retention pullback, and FX headwinds are the key offsets. The durable client funds interest contribution and $6B buyback authorization provide additional support.
From investor presentation · AI-generated analysis · Not investment advice
🔒
Premium Feature
Investor Presentation One-Pager — quarterly highlights, what went right/wrong & management guidance
Upgrade to Premium
Already a member? Log in
📈 STRONG STRONG quarter: revenue +7%, adjusted EPS +17%.
Revenue
Q4 consolidated revenue grew 7% to $5.5B. Employer Services revenue rose 7% on a reported basis and 6% on an organic constant currency basis, while PEO revenue grew 7%, or 5% excluding zero-margin pass-throughs.
Profitability
Net earnings increased 7% to $1.0B. Adjusted net earnings grew 14% to $1.1B, and adjusted diluted EPS rose 17% to $2.64.
Margins
Adjusted EBIT margin expanded 140bps to 25.1%, helped by Employer Services margin expansion of 90bps. PEO margin contracted 100bps due to faster growth in zero-margin pass-through revenues and higher workers' compensation and selling expenses.
Balance Sheet
ADP repurchased 8.6M shares for $2.1B in FY26 and expects continued elevated buybacks in FY27, funded partly by its May 2026 bond offering and a remaining $6B authorization. Explicit cash and debt balances were not discussed on the call.
Key Risks
Management flagged a possible 10-30bps decline in ES retention in FY27, driven by near-record levels and out-of-business rates. FX is expected to become a slight headwind, and PEO margins are expected to contract further in FY27 as zero-margin pass-throughs grow faster than total PEO revenue.
Outlook
For FY27, ADP guides consolidated revenue growth of 5%-6%, adjusted EBIT margin expansion of 70-90bps, and adjusted EPS growth of 9%-11%. It also expects ES bookings growth of 4%-7%, U.S. pays per control growth of flat to 1%, and client funds interest revenue of $1.54-$1.56B.
Generated by AI · Q4 2026 results · Not investment advice
🔒
Free Account Required

Create a free Finmagine account to access Finmagine™ Scorecard.

See how this company scores across 5 dimensions — Financial Health, Growth Prospects, Competitive Position, Management Quality, and Valuation — powered by 30+ computed ratios.

Create Free AccountLog In
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Ask AI.

Get 25 expert AI analysis templates — Business KPIs, Comprehensive, Forensic Governance, Peer Comparison, Risk-Reward, Full Research Report, IPO Decoder, Red Flag Detector, and more — ready to paste into ChatGPT, Claude, Gemini, or Perplexity.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Peer Comparison.

Compare this company side-by-side against its sector peers with financial metrics, ratio benchmarking, and relative performance across all key dimensions.

Upgrade to PremiumCreate Free Account
✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
🔍
🔎 See cross-company document search → ?
📞 Earnings Call Transcripts (5)
Q4 2026 Q4 2026 2026-07-29
Q4 and FY 2026 delivered 7% revenue growth, 140 bps Adjusted EBIT margin expansion, and 17% Adjusted EPS growth, with strong new business bookings and record client satisfaction. FY 2027 guidance calls for 5%-6% revenue growth, 9%-11% Adjusted EPS growth, and continued investment in AI and operational efficiency.
Q3 2026 Q3 2026 2026-04-29
Q3 delivered 7% revenue growth, 80 bps margin expansion, and 10% EPS growth, all ahead of expectations. Guidance for revenue, margin, and EPS was raised, driven by strong retention, AI-driven productivity, and robust international and compliance bookings.
Q2 2026 Q2 2026 2026-01-28
Q2 fiscal 2026 saw 6% revenue growth, 80 bps Adjusted EBIT margin expansion, and 11% Adjusted EPS growth, with broad-based strength in Employer Services and PEO. Guidance for full-year revenue and EPS was raised, and a $6B share repurchase and 10% dividend increase were announced.
Q1 2026 Q1 2026 2025-10-29
Q1 fiscal 2026 saw 7% revenue and adjusted EPS growth, record first-quarter sales, and strong client satisfaction. Guidance for full-year revenue, margin, and EPS growth is maintained, with continued investment in AI, Embedded Payroll, and new acquisitions.
Q4 2025 Q4 2025 2025-07-30
Delivered strong Q4 and full-year results with 7% revenue growth and 9% adjusted EPS growth, driven by robust performance in Employer Services and PEO segments. Fiscal 2026 guidance calls for 5–6% revenue growth and 8–10% adjusted EPS growth, supported by continued innovation, acquisitions, and healthy pipelines.
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Catalyst Timeline.

Every result, order win, insider trade, ECS update, earnings-call, and SEC announcement for this company — in one chronological lane.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Full Report.

Read the complete Finmagine™ investment research report — comprehensive fundamental analysis, business model assessment, competitive positioning, and investment recommendation.

Upgrade to PremiumCreate Free Account

📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

🎯
Discover Our Proven Investment Framework Learn how we analyze and rank stocks using advanced quantitative models, multi-dimensional scoring systems, and dynamic discriminatory ranking techniques that have guided successful investment decisions across market cycles.
📊 Explore The Finmagine™ Methodology

A comprehensive, bias-free framework for analyzing and ranking stocks by Financial Strength, Growth Potential, Competitive Edge, Management Quality, and Value.

Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Not SEC-Registered:
Finmagine is not registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC) or any state securities authority. Nothing on this platform constitutes investment advice as defined under the Investment Advisers Act of 1940.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
This analysis may contain forward-looking statements, forecasts, or projections that are inherently subject to risks, uncertainties, and assumptions. Actual results may differ materially from those expressed or implied. Finmagine does not undertake any obligation to update such statements in the future.

Limitation of Liability:
The content is provided "as is" without any warranties, express or implied. Finmagine expressly disclaims any liability for errors, omissions, or any losses incurred as a result of reliance on the information provided. Readers assume full responsibility for their investment decisions.