Automatic Data Processing Inc (NASDAQ:ADP) is likely to have sustained the previous quarter's 7.5% year-on-year revenue growth, while its booking momentum could have improved, according to RBC Capital Markets.
The Automatic Data Processing Analyst: Analyst Ashish Sabadra reiterated a Sector Perform rating on the stock ahead of Automatic Data’s third-quarter report on Oct. 29.
The Automatic Data Processing Thesis: The company is likely to report its fiscal first-quarter results broadly in line with consensus, Sabadra said in the note.
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Bookings momentum is likely to have improved, "driven by a strong pipeline and the closing of deals that were delayed from 4Q25, helping to offset the softness in International and HRO that weighed on 4Q25 bookings," he added.
The analyst expects ADP to reiterate its fiscal 2026 guidance "despite concerns about soft employment."
Despite weak employment trends, investors seem to be expecting a modest beat because consensus estimates are low, he added.
ADP Price Action: Shares rose by 0.48% to $281.88 at the time of publication on Tuesday.
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