Automatic Data Processing, Inc. (ADP) provides cloud-based human capital management (HCM) solutions worldwide. Valued at $122.2 billion by market cap, the company's services include a wide range of human resource, payroll, tax, and benefits administration solutions.
Shares of this global leader in HR and payroll solutions have underperformed the broader market over the past year. ADP has gained 14.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 16.1%. In 2025, ADP stock is up 3.4%, compared to the SPX’s 9.7% rise on a YTD basis.
Narrowing the focus, ADP’s underperformance is also apparent compared to the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained about 19% over the past year. Moreover, the ETF’s 14.6% returns on a YTD basis outshine ADP’s single-digit gains over the same time frame.
On Jul. 30, ADP shares closed up marginally after reporting its Q4 results. Its adjusted EPS of $2.26 topped Wall Street expectations of $2.22. The company’s revenue was $5.13 billion, beating Wall Street forecasts of $5.05 billion.
For fiscal 2026, ending in June 2026, analysts expect ADP’s EPS to grow 8.9% to $10.90 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 16 analysts covering ADP stock, the consensus is a “Hold.” That’s based on four “Strong Buy” ratings, 11 “Holds,” and one “Strong Sell.”
The configuration has been relatively stable over the past three months.
On Aug. 1, Argus kept a “Buy” rating on ADP and raised the price target to $345, implying a potential upside of 14% from current levels.
The mean price target of $325.62 represents a 7.6% premium to ADP’s current price levels. The Street-high price target of $350 suggests an upside potential of 15.6%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
