Automatic Data Processing, Inc. · ADP · FY2026 Q1 · Calendar Q4 2025

ADP Reaffirms FY2026 Outlook as AI and Payroll Expansion Advance

ADP's FY2026 growth case remains supported by steady HCM demand, AI-enabled products, embedded payroll and global expansion. The evidence is constructive but not risk-free: pays-per-control growth was flat to 0%, some newer initiatives are early-stage, and management reaffirmed rather than increased guidance.

Reported Before market openNASDAQTechnology $103.00B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $2.49 Consensus $2.44
EPS surprise +2.0% Reported versus consensus
Reported revenue $5.18B Consensus $5.14B
Revenue surprise +0.8% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move -6.6% Event window
SPY move +0.0% Same window
Abnormal move -6.6% Stock minus SPY
Volume 2.0× Versus trailing sessions
Subsequent drift -2.6% Up to 20 sessions
ADPSPY benchmark

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What changed

Compared with the prior quarter, ADP reported Q1 FY2026 progress in AI rollout, embedded payroll and the Pequity acquisition while reaffirming the full-year outlook. The current analysis also flags flat pays-per-control growth, PEO cost pressure and stablecoin-related regulatory considerations.

Guidance delta

Maintained: FY2026 guidance was reaffirmed at 5–6% revenue growth and 8–10% adjusted EPS growth, with modest margin expansion.

Key takeaways

  • Q1 FY2026 revenue and adjusted EPS grew 7% year over year, with record Employer Services sales volume.
  • Management highlighted expanding AI initiatives, including ADP Assist and a roadmap from simple to autonomous agents.
  • Embedded payroll, the Fiserv partnership, global expansion and the Pequity acquisition broaden the growth agenda, but several contributions remain early-stage.

Management priorities

  • Roll out AI agents and expand ADP Assist and generative AI tools for sales.
  • Scale embedded payroll, add CashFlow Central to RUN and continue global expansion.
  • Integrate WorkForce Software and use Pequity to extend compensation-management capabilities.

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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. 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

$260.26Current
$214Low
$261.62Average
$315High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 5, 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 $260.26. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Cantor FitzgeraldAnalyst unavailable$310$272.41 +19.1%Aug 3, 2026
Morgan StanleyAnalyst unavailable$286$273.37 +9.9%Jul 30, 2026
GuggenheimAnalyst unavailable$300$273.37 +15.3%Jul 30, 2026
JefferiesAnalyst unavailable$225$276.08 -13.5%Jul 29, 2026
Cantor FitzgeraldRamsey El-Assal$294$243.24 +13.0%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

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-10-05T21:40:41.774522+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-05T21:40:41.771646+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 2026-10-05. For educational purposes only; not investment advice.