Automatic Data Processing, Inc. · ADP · FY2025 Q4 · Calendar Q3 2025

ADP Maintains FY26 Outlook as AI and Integration Drive Growth

The current analysis supports a constructive but qualified view of ADP's growth durability: management sees AI, integration and distribution investments as growth engines, while softer bookings and macro sensitivity leave execution evidence still necessary.

Reported Before market openNASDAQTechnology $108.28B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $2.26 Consensus $2.23
EPS surprise +1.3% Reported versus consensus
Reported revenue $5.13B Consensus $5.04B
Revenue surprise +1.6% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +0.7% Event window
SPY move -0.1% Same window
Abnormal move +0.9% Stock minus SPY
Volume 1.9× Versus trailing sessions
Subsequent drift -2.5% Up to 20 sessions
ADPSPY benchmark

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Transcript intelligence

What changed

Relative to the prior quarter, management shifted from emphasizing raised guidance and solid bookings to a maintained FY26 outlook with explicit focus on accelerating bookings. Autonomous AI agents were highlighted as a newer product initiative, alongside deeper WorkForce Software integration and broader embedded payroll plans.

Guidance delta

Management maintained its FY26 outlook: 5%-6% revenue growth, 50-70 bps adjusted EBIT margin expansion and 8%-10% EPS growth.

Key takeaways

  • FY25 revenue grew 7% to $20.6 billion, while retention reached 92.1%.
  • Employer Services bookings grew 3%, but management described the pipeline as healthy and targeted acceleration in FY26.
  • AI products, WorkForce Software integration and embedded payroll partnerships remain central to the growth plan.

Management priorities

  • Scale autonomous AI agents across client touchpoints.
  • Integrate WorkForce Software with Lyric and global payroll.
  • Expand embedded payroll partnerships and invest in seller technology.

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Earnings History

Estimate Beat Miss Match
ADP REVENUE earnings history estimate and actual scatter chart 9 reported fiscal quarters and 3 future estimate-only quarters. Q2 '24 estimate $5B Q2 '24 actual $5B, beat Q3 '24 estimate $5B Q3 '24 actual $5B, beat Q4 '24 estimate $5B Q4 '24 actual $5B, beat Q1 '25 estimate $5B Q1 '25 actual $5B, beat Q4 '25 estimate $5B Q4 '25 actual $5B, beat Q1 '26 estimate $5B Q1 '26 actual $5B, beat Q2 '26 estimate $5B Q2 '26 actual $5B, beat Q3 '26 estimate $6B Q3 '26 actual $6B, beat Q4 '26 estimate $5B Q4 '26 actual $5B, beat Q1 '27 estimate $5B Q2 '27 estimate $6B Q3 '27 estimate $6B
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Analyst Consensus ?

ConsensusHold36 ratings
Bullish822.2%
Neutral2363.9%
Bearish513.9%

Analyst 52W Price Targets

$270.88Current
$214Low
$261.62Average
$315High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 10, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Cantor Fitzgerald Overweight OverweightMaintainAug 5, 2026
Wells Fargo Equal Weight Equal WeightMaintainJul 30, 2026
Stifel Hold HoldMaintainJul 30, 2026
Morgan Stanley Equal Weight Equal WeightMaintainJul 30, 2026
Guggenheim Buy BuyMaintainJul 30, 2026
Show 31 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $270.88. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Cantor FitzgeraldAnalyst unavailable$310$272.41 +14.4%Aug 3, 2026
Morgan StanleyAnalyst unavailable$286$273.37 +5.6%Jul 30, 2026
GuggenheimAnalyst unavailable$300$273.37 +10.8%Jul 30, 2026
JefferiesAnalyst unavailable$225$276.08 -16.9%Jul 29, 2026
Cantor FitzgeraldRamsey El-Assal$294$243.24 +8.5%Jul 22, 2026
See 36 more

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Company context

Snapshot as of publication

Automatic 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 earnings

Technology peers this season

Latest reports in the same sector

Latest beats and misses

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:55.686058+00:00
  3. Polygon adjusted daily market bars · 2026-10-10T17:20:41.133509+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-10T17:20:41.130675+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 2026-10-10. For educational purposes only; not investment advice.