# Automatic Data Processing, Inc. (ADP)

> Source: Nexqual · https://nexqual.com/ADP · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Automatic Data Processing, Inc. (ADP), nexqual.com/ADP" · informational, not investment advice.

**Price:** USD 307.94 (+4.56% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 294.5 · day 296.86–308.63 · 52w 188.16–308.63 · market cap $122B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $21.9B, net income $4.41B (20.1% margin) (SEC filings).
- Valuation: P/E 27.6x (avg 25.9x at the last 3 fiscal year-ends), net debt $735M.
- 6 of 80 tracked superinvestors hold ADP (13F, Q2 2026 (1 investor on Q3 2026, filed early)): 0 new, 3 added, 3 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 10 Form 4 filings, $12.5M; 0 not under a Rule 10b5-1 plan ($0K); 0 by opportunistic insiders, 5 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Insider open-market purchases, last ~7 months: 1 Form 4 filing, $746K; 0 by opportunistic insiders, 0 by routine insiders.
- Analysts: Hold (mean 3.06 on a 1–5 scale) (18 analysts), mean target USD 289.07 (range 225–340).
- Total return with dividends: 1Y +12.6% vs S&P 500 +14.9%; 5Y +58.1% vs S&P 500 +80.3%.
- Next earnings: 2026-10-28, EPS estimate USD 2.77, revenue estimate $5.47B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $16.5B | $18.0B | $19.2B | $20.6B | $21.9B | $21.9B |
| Gross profit | $7.04B | $8.06B | $8.73B | $9.46B | $10.2B | — |
| Net income | $2.95B | $3.41B | $3.75B | $4.08B | $4.41B | $4.41B |
| EPS (diluted) | $7.00 | $8.21 | $9.10 | $9.98 | $10.94 | — |
| Gross margin | 42.6% | 44.7% | 45.4% | 46.0% | 46.4% | — |
| Net margin | 17.9% | 18.9% | 19.5% | 19.8% | 20.1% | 20.1% |
| Revenue growth | +9.9% | +9.2% | +6.6% | +7.1% | +6.7% | — |
| Cash + short-term investments | $1.48B | $2.10B | $3.30B | $7.85B | $4.23B | — |
| Total debt | $2.99B | $2.99B | $2.99B | $3.98B | $4.97B | — |
Fiscal years end Jun. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 27.6x · P/S 5.6x · EV/Sales 5.6x · P/B 20.2x · Earnings yield 3.62% · Dividend yield (paid, TTM) 2.15% · Buyback yield (TTM) 1.71% · Net debt $735M · EV $123B
P/E at fiscal year-ends: Jun 2026 20.5x, Jun 2025 30.9x, Jun 2024 26.2x.

## Superinvestors (SEC 13F-HR, Q2 2026)
6 of 80 tracked investors hold ADP (1 investor on Q3 2026, filed early). Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change | Quarter |
|---|---|---|---|---|---|
| Francois Rochon | Giverny Capital | 4.93% | $147M | Added +56.2% | Q2 2026 |
| Terry Smith | Fundsmith | 4.27% | $583M | Reduced -32.5% | Q2 2026 |
| First Eagle Investment | First Eagle Investment Management | 1.93% | $1.16B | Added +81.6% | Q2 2026 |
| David Katz | Matrix Asset Advisors | 1.15% | $14.0M | Reduced -3.0% | Q3 2026 |
| Jensen Investment Management |  | 0.45% | $18.5M | Reduced -21.4% | Q2 2026 |
| Mairs & Power | Mairs & Power Funds | 0.26% | $28.5M | Added +2.2% | Q2 2026 |

## Insider sales (SEC Form 4, open-market, last ~7 months)
10 of 10 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-09-03 | Desilva Joseph | Executive VP | 631 | $178K | 3.2% | Yes | Routine (sold in Sep each year 2023–2025) |
| 2026-09-02 | Foskett David | Corp. VP | 1,529 | $433K | 9.8% | Yes | Too little history (no open-market trades in 2023 or 2024) |
| 2026-09-02 | Desilva Joseph | Executive VP | 6,512 | $1.8M | 25.1% | Yes | Routine (sold in Sep each year 2023–2025) |
| 2026-09-02 | D'Ambrosio Christopher | Corp. VP | 1,872 | $530K | 15.9% | Yes | Routine (sold in Sep each year 2023–2025) |
| 2026-09-02 | Black Maria | President & CEO | 29,810 | $8.4M | 27% | Yes | Routine (sold in Sep each year 2023–2025) |
| 2026-08-21 | Michaud Brian L. | Executive VP | 120 | $34K | 0.6% | Yes | Too little history (no open-market trades in 2023 or 2024) |
| 2026-08-20 | Kwon David | Corp VP | 798 | $223K | 5.7% | Yes | Too little history (no open-market trades in 2023) |
| 2026-07-30 | Kwon David | Corp VP | 2,414 | $641K | 20% | Yes | Too little history (no open-market trades in 2023) |
| 2026-05-08 | Michaud Brian L. | Executive VP | 848 | $180K | 5.5% | Yes | Too little history (no open-market trades in 2023 or 2024) |
| 2026-04-14 | D'Ambrosio Christopher | Corp. VP | 543 | $106K | 6.1% | Yes | Routine (sold in Sep each year 2023–2025; this trade is outside those months) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Insider purchases (SEC Form 4, open-market, last ~7 months)
1 purchase, $746K. Private placements, offerings, dividend reinvestment and employee stock purchase plan buys are excluded.
| Trade date | Insider | Role | Shares | Value | Avg price | Insider type |
|---|---|---|---|---|---|---|
| 2026-05-07 | Swan Robert Holmes | Director | 3,619 | $746K | 206.05 | Too little history (no open-market trades in 2023–2025) |

## Analysts
Consensus Hold (mean 3.06 on a 1–5 scale), 18 analysts; mean target USD 289.07 (low 225, high 340).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-08-05 | Cantor Fitzgerald | Reiterated | Overweight | $310 |
| 2026-08-03 | Cantor Fitzgerald | Target raised | Overweight | $295 → $310 |
| 2026-07-30 | Citigroup | Target raised | Neutral | $230 → $287 |
| 2026-07-30 | Morgan Stanley | Target raised | Equal-Weight | $240 → $286 |
| 2026-07-30 | Stifel | Target raised | Hold | $260 → $285 |
| 2026-07-30 | Wells Fargo | Target raised | Equal-Weight | $248 → $283 |
| 2026-07-30 | Guggenheim | Target raised | Buy | $270 → $300 |
| 2026-07-22 | UBS | Target raised | Neutral | $260 → $270 |
| 2026-07-22 | Cantor Fitzgerald | Target raised | Overweight | $244 → $295 |
| 2026-07-21 | Guggenheim | Reiterated | Buy | $270 |
| 2026-07-09 | Wells Fargo | Target raised | Equal-Weight | $214 → $248 |
| 2026-07-08 | Stifel | Target raised | Hold | $240 → $260 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +12.6% | +58.1% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +12.6% | +9.6% |
| Volatility (annualized) | 28.3% | 23.0% |
| Max drawdown | -32.0% (Oct 2025→Apr 2026) | -40.8% (Jun 2025→Apr 2026) |

## Peers (Software - Application)
SNOW (Snowflake Inc.) USD 313.96 -2.72% · UBER (Uber Technologies, Inc.) USD 69.07 +2.14% · ADBE (Adobe Inc.) USD 270.55 +6.07% · DDOG (Datadog, Inc.) USD 257.75 -5.62% · INTU (Intuit Inc.) USD 354.9 +5.75% · NOW (ServiceNow, Inc.) USD 157 +2.53%

## More
Full page: https://nexqual.com/ADP · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in ADP's own 10-K filed 2026-08-05 (https://www.sec.gov/Archives/edgar/data/8670/000000867026000030/adp-20260630.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Partner | Chubb Ltd (CB) | "ADP Indemnity paid a premium of $327.8 million in July 2026, to enter into a reinsurance agreement with Chubb to cover substantially all losses incurred by ADP Indemnity for fiscal 2027 policy year on terms substantially…" |

Other companies that name ADP in their own reports (relationship from ADP's side):

| Relationship | Company | Their filing | Sentence |
|---|---|---|---|
| partner | Workday, Inc. (WDAY) | 10-K 2026-03-06 | "Our global partnerships with payroll providers, including Automatic Data Processing, Inc. ("ADP"), Remote Technology, Inc., and Strada, enable integrated and streamlined payroll solutions across the w…" |

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Employer Services | $3.70B | 67.5% | +6.7% |
| PEO Services | $1.78B | 32.5% | +6.9% |
| Total revenue | $5.47B | 100% | — |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Revenues from external customers | $3.34B | 61.1% | +5.8% |
| Revenues, other than interest on funds held for clients and PEO revenues | $3.34B | 61.1% | +5.8% |
| HCM | $2.23B | 40.7% | +4.8% |
| PEO Revenues | $1.78B | 32.5% | +6.9% |
| PEO zero-margin benefits pass-throughs | $1.18B | 21.6% | +7.8% |
| HRO, excluding PEO zero-margin benefits pass-throughs | $962.0M | 17.6% | +5.7% |
| Global | $749.7M | 13.7% | +8.8% |
| Interest on funds held for clients | $355.5M | 6.5% | +15.5% |
| Total revenue | $5.47B | 100% | — |
The lines above cover 254.6% of total revenue.

## Revenue by region (fiscal year ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $19.28B | 87.8% | +6.1% |
| EMEA | $1.73B | 7.9% | +13.0% |
| Canada | $523.7M | 2.4% | +7.0% |
| Other Geographical Places | $410.6M | 1.9% | +14.4% |
| Total revenue | $21.95B | 100% | — |

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $2.77 | $2.76 | +0.3% | $5.47B | 15 |
| Next quarter (ends 2026-12-31) | $2.91 | $2.92 | -0.3% | $5.67B | 15 |
| Current fiscal year (ends 2027-06-30) | $12.26 | $12.20 | +0.5% | $23.23B | 18 |
| Next fiscal year (ends 2028-06-30) | $13.40 | $13.35 | +0.4% | $24.56B | 18 |