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Roseland, New Jersey-based Automatic Data Processing, Inc. (ADP) engages in the provision of cloud-based human capital management (HCM) solutions around the world. Valued at a market cap of $129.6 billion, the company operates through Employer Services and Professional Employer Organization (PEO) segments.
Shares of ADP have notably outpaced the broader market over the past 52 weeks. ADP has soared 27.7% over this time frame, while the broader S&P 500 Index ($SPX) has gained 12.5%. Moreover, shares of ADP are up 9.1% on a YTD basis, compared to SPX’s 1.3% surge.
Looking closer, Automatic Data Processing has also outperformed the iShares U.S. Tech Independence Focused ETF’s (IETC) 23.8% rise over the past 52 weeks and 2.8% gain on a YTD basis.
Automatic Data Processing stock rose 1.6% following the release of its strong Q3 2025 on Apr. 30. The company reported revenue of $5.6 billion, up 5.7% year-over-year, driven by growth across both segments, and exceeding Wall Street expectations of $5.5 billion. Its adjusted EBIT rose 5.9% from the prior-year quarter to $1.6 billion. Adjusted EPS came in at $3.06, up 6.3% from the year-ago quarter and above the consensus estimate of $2.96.
Additionally, for fiscal 2025, ADP expects total revenue growth in the range of 6 %to 7%, with adjusted EPS growth projected between 8% and 9%.
For the current fiscal year, ending in June 2025, analysts expect ADP’s adjusted EPS to increase 8.7% year-over-year to $9.98. Moreover, the company's earnings surprise history is strong. It beat the consensus estimates in the last four quarters.
Among the 18 analysts covering the stock, the consensus rating is a “Hold.” That’s based on four “Strong Buy” ratings, 13 “Holds,” and one “Strong Sell.”
This configuration is slightly more bullish than three months ago, with three “Strong Buy” ratings on the stock.
On May 1, RBC Capital analyst Ashish Sabadra reiterates ADP's price target at $315 while maintaining a “Sector Perform” rating.
As of writing, Automatic Data Processing is trading above the mean price target of $311.80. The Street-high price target of $350 implies a potential upside of 9.6% from the current price levels.
