/Automatic%20Data%20Processing%20Inc_%20logo%20on%20building-by%20Tada%20Images%20via%20Shutterstock.jpg)
With a market cap of $119.6 billion, Automatic Data Processing, Inc. (ADP) is a global leader in cloud-based Human Capital Management (HCM) solutions, offering services such as payroll, HR, talent management, and benefits administration. Operating through its Employer Services and Professional Employer Organization (PEO) segments, ADP delivers comprehensive HCM platforms and outsourcing solutions to businesses of all sizes.
The Roseland, New Jersey-based company is slated to announce its fiscal Q3 2025 earnings results before the market opens on Wednesday, Apr. 30. Ahead of this event, analysts expect ADP to report a profit of $2.96 per share, a 2.8% growth from $2.88 per share in the year-ago quarter. It has exceeded Wall Street's earnings expectations in the past four quarters.
For fiscal 2025, analysts expect the payroll and human resources company to report EPS of $9.94, a growth of 8.3% from $9.18 in fiscal 2024. In addition, EPS is forecasted to grow 9.2% year-over-year to $10.85 in fiscal 2026.
Shares of Automatic Data Processing have gained 19.1% over the past 52 weeks, outperforming the broader S&P 500 Index's ($SPX) 7.5% increase and the Industrial Select Sector SPDR Fund's (XLI) 4.8% rise over the same period.
Shares of ADP recovered marginally on Jan. 29 due to the company’s better-than-expected fiscal Q2 2025 earnings results, with EPS of $2.35 and revenue of $5.1 billion. Strong new business bookings, a 21% rise in interest revenue to $273 million, along with growing traction from the AI-powered ADP Lyric platform, boosted investor confidence. Investor sentiment was further supported by a reaffirmed outlook for 6% - 7% revenue growth and 7% - 9% adjusted EPS growth for the full fiscal year.
Analysts' consensus view on Automatic Data Processing stock remains cautious, with a "Hold" rating overall. Out of 18 analysts covering the stock, four recommend a "Strong Buy," 13 give a "Hold" rating, and one "Strong Sell." As of writing, ADP is trading below the average analyst price target of $311.33.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
