What to Expect From Automatic Data Processing's Next Quarterly Earnings Report

Core Insights - Automatic Data Processing, Inc. (ADP) is a leading provider of cloud-based human capital management solutions with a market capitalization of $117.8 billion [1] - The company is expected to report an adjusted profit of $2.44 per share for Q1, reflecting a 4.7% increase from the previous year [2] - ADP has a strong earnings surprise history, having exceeded analysts' bottom-line estimates in the last four quarters [2] Financial Performance - For the full fiscal year 2026, ADP's adjusted EPS is projected to be $10.92, a 9.1% increase from $10.01 in 2025 [3] - In fiscal 2027, earnings are anticipated to rise further by 9.5% year-over-year to $11.96 per share [3] - In Q4 of fiscal 2025, ADP reported net revenues of $5.1 billion, marking a 7.5% year-over-year increase and exceeding expectations by 1.5% [5] Stock Performance - Over the past 52 weeks, ADP's stock has decreased by 65 basis points, underperforming the Technology Select Sector SPDR Fund's 25.9% increase and the S&P 500 Index's 16.3% returns [4] - Following the release of strong Q4 results, ADP's stock experienced a slight uptick [5] Analyst Sentiment - The overall consensus rating for ADP is "Hold," with 17 analysts providing coverage: three "Strong Buys," 13 "Holds," and one "Strong Sell" [6] - The mean price target for ADP is $318.54, indicating an 11.4% upside potential from current price levels [6]