ADP
Automatic Data Processing, Inc.
ADP's fundamentals are strong: it turned 24% of its revenue into free cash flow and revenue grew 6.5%. At 27x earnings, it's trading in line with its usual 30x. Analysts expect earnings growth.
ADP Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Strong | |
| Strong | |
| Strong |
ADP's profitability, cash flow and balance sheet are currently strong, and its revenue is stable.
ADP PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 24x | $308 | — |
| Cheap | 25x | $284 | -7.9% |
| Current | 27x | $308 | — |
| Fair | 30x | $337 | +9.4% |
| Expensive | 33x | $375 | +22% |
Historical ranges are pointers, not guarantees.
ADP's PE is in its cheap range at 27x. If earnings grow as analysts expect, today's price would be 24x next year's earnings.
ADP Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Growth | |
| Growth | |
| Improving | |
| Moderate | |
| High |
Analysts expect earnings and revenue growth for ADP, with profitability improving.
ADP Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $12.63 | +12% |
| Q3 2026 | $11.28 | +11% |
| Q2 2026 | $10.94 | +9.6% |
| Q1 2026 | $10.72 | +9.8% |
| Q4 2025 | $10.40 | +8.6% |
| Q3 2025 | $10.13 | +8.2% |
| Q2 2025 | $9.98 | +9.7% |
| Q1 2025 | $9.76 | +8.8% |
| Q4 2024 | $9.58 | +11% |
ADP's earnings per share have climbed steadily: $11.28 over the past year, up 11% from the year before, and higher year over year for 22 quarters in a row.
ADP Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $5.5B | +6.1% |
| Q2 2026 | $5.5B | +6.8% |
| Q1 2026 | $5.9B | +7% |
| Q4 2025 | $5.4B | +6.2% |
| Q3 2025 | $5.2B | +7.1% |
| Q2 2025 | $5.1B | +7.5% |
| Q1 2025 | $5.6B | +5.7% |
| Q4 2024 | $5B | +8.1% |
ADP's revenue has grown year over year every quarter since late 2020: $5.5B last quarter, up 6.1% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 24% | +0.8 points |
| Q2 2026 | 21% | -0.5 points |
| Q1 2026 | 29% | +0.7 points |
| Q4 2025 | 24% | +0.7 points |
| Q3 2025 | 23% | -0.3 points |
| Q2 2025 | 21% | +0.4 points |
| Q1 2025 | 28% | -0.2 points |
| Q4 2024 | 23% | +0.1 points |
ADP's operating margin was 24% last quarter, up 0.8 points from the same quarter a year ago.
ADP Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $598.3M | +0.5% |
| Q2 2026 | $1.4B | -3.6% |
| Q1 2026 | $2.2B | +47% |
| Q4 2025 | $1.1B | -0.4% |
| Q3 2025 | $595.6M | -22% |
| Q2 2025 | $1.4B | +13% |
| Q1 2025 | $1.5B | +3.5% |
| Q4 2024 | $1.1B | +14% |
ADP's free cash flow has been positive every quarter for seven years: $5.2B over the past year, up 14% from the year before.
ADP Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -1.4% | -5.7M shares |
| 1 year | -2.2% | -8.9M shares |
| 3 years | -3.9% | -16M shares |
| 5 years | -6.2% | -26.2M shares |
| Available history | -8.2% | -35.7M shares |
ADP has 398M diluted shares, down 2.2% from a year ago, with $2.5B in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $758.8M |
| Q2 2026 | $620.1M |
| Q1 2026 | $581.4M |
| Q4 2025 | $515.8M |
| Q3 2025 | $366M |
| Q2 2025 | $324M |
| Q1 2025 | $311.6M |
| Q4 2024 | $272.3M |
ADP spent $2.5B buying back its own shares over the past year, up 94% from the year before.
ADP Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 0.3x | Very low |
| Q2 2026 | 0.1x | Very low |
| Q1 2026 | 0.1x | Very low |
| Q4 2025 | 0.3x | Very low |
| Q3 2025 | 0.3x | Very low |
| Q2 2025 | 0.1x | Very low |
| Q1 2025 | 0.2x | Very low |
| Q4 2024 | 0.3x | Very low |
ADP's net debt is less than a year of its operating earnings (EBITDA).
ADP Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 67.3 | Neutral |
| Stochastic | 84.1 | Overbought |
ADP's weekly RSI is 67 (neutral) and its Stochastic is 84 (overbought).
ADP PE vs Industrials Sector
| Metric | ADP | Sector median | Relative |
|---|---|---|---|
| PE | 27x | 24x | 14% above |
| PE % | 27 | 58 | 31 pts below |
ADP is trading at 27x earnings, a 14% premium to the Industrials sector's median of 24x.
ADP Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $286.3 | 7.6% above |
| 20 week MA | $273.8 | 12% above |
| 50 week MA | $246.0 | 25% above |
| 100 week MA | $271.2 | 14% above |
| 200 week MA | $258.0 | 19% above |
ADP is in an uptrend: it's above all five of its weekly moving averages, and 19% above its 200-week average.
ADP Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $170.8 | $176.6 | +3.4% |
| 2021 | $176.6 | $242.0 | +37% |
| 2022 | $242.0 | $240.9 | -0.4% |
| 2023 | $240.9 | $233.0 | -3.3% |
| 2024 | $233.0 | $296.2 | +27% |
| 2025 | $296.2 | $258.8 | -13% |
| 2026 YTD | $258.8 | $307.9 | +19% |
ADP has finished lower in three of the last six years. It's up 19% so far in 2026.