Automatic Data Processing, Inc. · ADP · FY2025 Q2 · Calendar Q1 2025
ADP Maintains FY2025 Outlook as Partnerships and Integration Advance
The quarter supports a cautiously constructive operating thesis: resilient Employer Services demand and new growth initiatives provide support, but the evidence is not sufficient to dismiss execution, rate, FX, and PEO-related risks.
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Transcript intelligence
What changed
Relative to the prior-quarter analysis, the Fiserv partnership became a central growth initiative, WorkForce Software integration reached the 100-day milestone, and Lyric bookings were described as accelerating. Guidance was maintained rather than raised, while FX, interest-rate, and PEO timing risks became more prominent.
Guidance delta
Management maintained FY2025 guidance: 6–7% revenue growth, 7–9% adjusted EPS growth, and 30–50 basis points of adjusted EBIT margin expansion.
Key takeaways
- Management described Q2 FY2025 as a quarter of 8% revenue growth, 60 basis points of adjusted EBIT margin expansion, and 10% adjusted EPS growth.
- The Fiserv partnership and WorkForce Software integration broaden ADP’s small-business and workforce-management growth opportunities.
- Lyric bookings were described as accelerating, while client satisfaction reached an all-time high.
- The main counterweights are potential FX and interest-rate headwinds, PEO deceleration, and integration-related margin pressure.
Management priorities
- Integrate and cross-sell WorkForce Software capabilities across ADP’s workforce-management portfolio.
- Develop the Fiserv relationship around Run, Clover, and CashFlow Central for small-business customers.
- Expand Lyric globally and increase adoption of ADP Assist and related AI-enabled tools.
- Use the June 12, 2025 Investor Day to outline the strategic roadmap.
- Explore longer-term expansion into B2B payments and treasury management.
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Analyst 52W Price Targets
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 18, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| Cantor Fitzgerald | Overweight | Overweight | Maintain | Aug 5, 2026 |
| Wells Fargo | Equal Weight | Equal Weight | Maintain | Jul 30, 2026 |
| Stifel | Hold | Hold | Maintain | Jul 30, 2026 |
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | Jul 30, 2026 |
| Guggenheim | Buy | Buy | Maintain | Jul 30, 2026 |
| Citigroup | Neutral | Neutral | Maintain | Jul 30, 2026 |
| UBS | Neutral | Neutral | Maintain | Jul 22, 2026 |
| TD Cowen | Hold | Hold | Maintain | Jul 6, 2026 |
| Argus Research | Buy | Buy | Maintain | May 5, 2026 |
| JP Morgan | Underweight | Underweight | Maintain | Jan 29, 2026 |
| Jefferies | Underperform | Hold | Downgrade | Dec 16, 2025 |
| Mizuho | Outperform | Outperform | Maintain | Jun 13, 2025 |
| RBC Capital | Sector Perform | Sector Perform | Maintain | Jun 5, 2025 |
| TD Securities | Hold | Hold | Maintain | May 21, 2025 |
| Barclays | Overweight | Overweight | Maintain | Feb 3, 2025 |
| B of A Securities | Neutral | Neutral | Maintain | Aug 1, 2024 |
| Evercore ISI Group | Underperform | Underperform | Maintain | Mar 26, 2024 |
| Wolfe Research | Peer Perform | Underperform | Upgrade | Jan 4, 2024 |
| Deutsche Bank | Hold | Hold | Maintain | Apr 27, 2023 |
| Baird | Neutral | Neutral | Maintain | Apr 27, 2023 |
| BMO Capital | Market Perform | Market Perform | Maintain | Oct 28, 2021 |
| Credit Suisse | Neutral | Outperform | Downgrade | Aug 16, 2021 |
| Cowen & Co. | Market Perform | Outperform | Downgrade | Sep 21, 2020 |
| Goldman Sachs | Sell | Sell | Maintain | Jul 14, 2020 |
| CFRA | Hold | Hold | Maintain | Apr 29, 2020 |
| MoffettNathanson | Neutral | Buy | Downgrade | Jan 7, 2020 |
| Bank of America | Neutral | Buy | Downgrade | Sep 11, 2019 |
| Argus | Buy | Buy | Maintain | Aug 13, 2018 |
| Wedbush | Neutral | Neutral | Maintain | Jun 13, 2018 |
| Stifel Nicolaus | Hold | Hold | Maintain | Jun 6, 2018 |
| Bernstein | Outperform | Outperform | Maintain | Oct 31, 2017 |
| William Blair | Market Perform | Outperform | Downgrade | Jul 21, 2017 |
| Compass Point | Sell | Sell | Maintain | Apr 15, 2016 |
| Sterne Agee CRT | Neutral | Neutral | Maintain | Dec 17, 2015 |
| Raymond James | Outperform | Outperform | Maintain | Aug 1, 2014 |
| Susquehanna | Neutral | Positive | Downgrade | Aug 2, 2013 |
Named analyst price targets
Upside is calculated against the persisted current price $288.9. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Cantor Fitzgerald | Analyst unavailable | $310 | $272.41 | +7.3% | Aug 3, 2026 |
| Morgan Stanley | Analyst unavailable | $286 | $273.37 | -1.0% | Jul 30, 2026 |
| Guggenheim | Analyst unavailable | $300 | $273.37 | +3.8% | Jul 30, 2026 |
| Jefferies | Analyst unavailable | $225 | $276.08 | -22.1% | Jul 29, 2026 |
| Cantor Fitzgerald | Ramsey El-Assal | $294 | $243.24 | +1.8% | Jul 22, 2026 |
| Cantor Fitzgerald | Analyst unavailable | $295 | $246.22 | +2.1% | Jul 22, 2026 |
| UBS | Analyst unavailable | $270 | $246.22 | -6.5% | Jul 22, 2026 |
| Wells Fargo | Jason Kupferberg | $248 | $241.37 | -14.2% | Jul 9, 2026 |
| Stifel Nicolaus | Analyst unavailable | $260 | $245.6 | -10.0% | Jul 8, 2026 |
| Morgan Stanley | Analyst unavailable | $240 | $213 | -16.9% | May 10, 2026 |
| Argus Research | Analyst unavailable | $240 | $209.14 | -16.9% | May 5, 2026 |
| Robert W. Baird | Analyst unavailable | $270 | $215.06 | -6.5% | Apr 30, 2026 |
| Jefferies | Analyst unavailable | $190 | $215.06 | -34.2% | Apr 29, 2026 |
| Cantor Fitzgerald | Analyst unavailable | $244 | $204.24 | -15.5% | Apr 21, 2026 |
| Wells Fargo | Analyst unavailable | $214 | $201.25 | -25.9% | Mar 27, 2026 |
| Stifel Nicolaus | David Grossman | $270 | $231.36 | -6.5% | Feb 9, 2026 |
| BMO Capital | Daniel Jester | $281 | $249.06 | -2.7% | Jan 29, 2026 |
| Stifel Nicolaus | David Grossman | $280 | $250.69 | -3.1% | Jan 29, 2026 |
| Morgan Stanley | James Faucette | $274 | $250.69 | -5.2% | Jan 29, 2026 |
| Wells Fargo | Analyst unavailable | $262 | $250.69 | -9.3% | Jan 29, 2026 |
| Cantor Fitzgerald | Analyst unavailable | $306 | $258.17 | +5.9% | Jan 26, 2026 |
| BMO Capital | Daniel Jester | $288 | $260.14 | -0.3% | Jan 16, 2026 |
| Jefferies | Samad Samana | $230 | $264.96 | -20.4% | Dec 16, 2025 |
| Stifel Nicolaus | David Grossman | $290 | $261.16 | +0.4% | Oct 30, 2025 |
| Jefferies | Analyst unavailable | $245 | $261.22 | -15.2% | Oct 29, 2025 |
| Wells Fargo | Analyst unavailable | $288 | $283.98 | -0.3% | Oct 21, 2025 |
| UBS | Analyst unavailable | $290 | $288.69 | +0.4% | Sep 16, 2025 |
| Jefferies | Analyst unavailable | $315 | $310.94 | +9.0% | Jul 30, 2025 |
| UBS | Kevin McVeigh | $315 | $306.82 | +9.0% | Jun 13, 2025 |
| Jefferies | Samad Samana | $305 | $300.57 | +5.6% | Jan 29, 2025 |
| RBC Capital | Ashish Sabadra | $315 | $290.24 | +9.0% | Oct 31, 2024 |
| Bank of America Securities | Jason Kupferberg | $281 | $285.16 | -2.7% | Oct 4, 2024 |
| Bank of America Securities | Jason Kupferberg | $267 | $262.62 | -7.6% | Aug 1, 2024 |
| RBC Capital | Ashish Sabadra | $267 | $252.98 | -7.6% | Sep 5, 2023 |
| Barclays | Analyst unavailable | $257 | $218.18 | -11.0% | May 2, 2022 |
| Citigroup | Analyst unavailable | $230 | $218.18 | -20.4% | May 2, 2022 |
| Mizuho Securities | Dan Dolev | $250 | $218.18 | -13.5% | May 2, 2022 |
| Stifel Nicolaus | David Grossman | $238 | $212.46 | -17.6% | Mar 16, 2022 |
| BMO Capital | Jeffrey Silber | $220 | $233.04 | -23.8% | Nov 16, 2021 |
| J.P. Morgan | Tien Tsin Huang | $224 | $211.82 | -22.5% | Aug 17, 2021 |
| Credit Suisse | Kevin Mcveigh | $215 | $213.56 | -25.6% | Aug 16, 2021 |
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Start freeCompany context
Snapshot as of publicationAutomatic Data Processing, Inc. (ADP) is a global provider of cloud-based solutions designed for human capital management (HCM). The company organizes its operations into two primary segments: Employer Services and Professional Employer Organization (PEO). Through its Employer Services division, ADP delivers strategic, cloud-powered platforms and comprehensive human resources (HR) outsourcing.…
Historical context
All ADP earningsTechnology peers this season
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| WIT Wipro Limited | FY2027 Q2 · Calendar Q4 2026 | -25.0% | +3.9% | Wipro: AI pipeline expands as Q3 guidance stays narrow |
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| ERIC Telefonaktiebolaget LM Ericsson (publ) | FY2026 Q3 · Calendar Q4 2026 | +28.6% | +11.8% | Ericsson Q3: 7% organic growth, resilient margins and AI-led demand |
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2025-01-15T00:03:22.707476+00:00
- Polygon adjusted daily market bars · 2026-10-18T17:20:41.044898+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-18T17:20:41.042060+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-18. For educational purposes only; not investment advice.