What is Zacks Research’s Estimate for ADP Q3 Earnings?

Automatic Data Processing, Inc. (NASDAQ:ADP) – Analysts at Zacks Research upped their Q3 2026 EPS estimates for Automatic Data Processing in a research note issued on Tuesday, November 18th. Zacks Research analyst Team now anticipates that the business services provider will post earnings per share of $3.26 for the quarter, up from their prior forecast of $3.24. The consensus estimate for Automatic Data Processing’s current full-year earnings is $9.93 per share. Zacks Research also issued estimates for Automatic Data Processing’s Q4 2026 earnings at $2.58 EPS, Q1 2027 earnings at $2.65 EPS, Q2 2027 earnings at $2.99 EPS, Q4 2027 earnings at $3.10 EPS, FY2027 earnings at $11.86 EPS and Q1 2028 earnings at $2.97 EPS.

Other equities research analysts have also issued reports about the company. Wells Fargo & Company dropped their target price on Automatic Data Processing from $288.00 to $272.00 and set an “underweight” rating on the stock in a research report on Thursday, October 30th. JPMorgan Chase & Co. dropped their price objective on shares of Automatic Data Processing from $340.00 to $295.00 and set an “underweight” rating on the stock in a report on Thursday, October 30th. Stifel Nicolaus lifted their price objective on shares of Automatic Data Processing from $305.00 to $318.00 and gave the company a “hold” rating in a research report on Thursday, July 31st. Dbs Bank upgraded shares of Automatic Data Processing to a “hold” rating in a research report on Thursday, August 21st. Finally, Citigroup assumed coverage on shares of Automatic Data Processing in a research note on Thursday, October 23rd. They issued a “neutral” rating and a $303.00 price target on the stock. Three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $312.67.

Automatic Data Processing Trading Down 0.5%

NASDAQ:ADP opened at $249.69 on Wednesday. Automatic Data Processing has a 12-month low of $247.21 and a 12-month high of $329.93. The firm has a market capitalization of $100.99 billion, a P/E ratio of 24.65, a P/E/G ratio of 2.39 and a beta of 0.86. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.05 and a quick ratio of 1.05. The business has a 50 day simple moving average of $278.43 and a 200 day simple moving average of $297.92.

Automatic Data Processing (NASDAQ:ADP) last posted its earnings results on Wednesday, October 29th. The business services provider reported $2.49 EPS for the quarter, beating the consensus estimate of $2.44 by $0.05. The company had revenue of $5.18 billion during the quarter, compared to analyst estimates of $5.14 billion. Automatic Data Processing had a return on equity of 70.63% and a net margin of 19.79%.The business’s revenue was up 7.1% compared to the same quarter last year. During the same period in the prior year, the company earned $2.33 earnings per share. Automatic Data Processing has set its FY 2026 guidance at 10.811-11.011 EPS.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Jacobsen Capital Management boosted its stake in Automatic Data Processing by 3.8% during the 2nd quarter. Jacobsen Capital Management now owns 907 shares of the business services provider’s stock worth $280,000 after purchasing an additional 33 shares during the period. Signature Wealth Management Group raised its holdings in shares of Automatic Data Processing by 2.3% in the second quarter. Signature Wealth Management Group now owns 1,450 shares of the business services provider’s stock valued at $447,000 after buying an additional 33 shares during the last quarter. Bangor Savings Bank raised its holdings in shares of Automatic Data Processing by 0.7% in the second quarter. Bangor Savings Bank now owns 4,907 shares of the business services provider’s stock valued at $1,513,000 after buying an additional 34 shares during the last quarter. Ameritas Advisory Services LLC boosted its stake in shares of Automatic Data Processing by 2.1% during the second quarter. Ameritas Advisory Services LLC now owns 1,629 shares of the business services provider’s stock worth $502,000 after buying an additional 34 shares during the period. Finally, PGIM Custom Harvest LLC boosted its stake in shares of Automatic Data Processing by 4.9% during the second quarter. PGIM Custom Harvest LLC now owns 722 shares of the business services provider’s stock worth $223,000 after buying an additional 34 shares during the period. 80.03% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Automatic Data Processing

In related news, VP Joseph Desilva sold 4,614 shares of the business’s stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $296.57, for a total transaction of $1,368,373.98. Following the sale, the vice president owned 17,536 shares of the company’s stock, valued at $5,200,651.52. The trade was a 20.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Christopher D’ambrosio sold 597 shares of the company’s stock in a transaction that occurred on Wednesday, September 10th. The stock was sold at an average price of $296.90, for a total value of $177,249.30. Following the completion of the sale, the vice president owned 10,541 shares of the company’s stock, valued at $3,129,622.90. This trade represents a 5.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 52,516 shares of company stock worth $15,632,410 in the last three months. Insiders own 0.20% of the company’s stock.

Automatic Data Processing Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 1st. Shareholders of record on Friday, December 12th will be paid a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Friday, December 12th. This is a positive change from Automatic Data Processing’s previous quarterly dividend of $1.54. Automatic Data Processing’s dividend payout ratio is 67.13%.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions.