Automatic Data Processing is set to report its second-quarter fiscal 2026 results with revenues expected to reach approximately $5.4 billion and adjusted EPS of $2.58. The company’s Employer Services segment is forecast to deliver mid-single-digit organic growth, while the Professional Employer Organization business is projected to grow revenue by more than 15% year-over-year. Management has reiterated full-year guidance of 10.81 to 11.01 EPS, reflecting confidence in continued margin expansion driven by operating leverage and disciplined cost management.

Thirteen research firms currently cover ADP, assigning an average rating of Hold. Two analysts rate the stock as Sell, nine as Hold and two as Buy. The average twelve-month target price across those reports stands at $306.42. Over the past quarter, three major brokerages adjusted their outlook downward, citing near-term macro pressures in the mid-market segment, while two firms raised their forecasts on stronger-than-anticipated retention in the PEO division.

On January 14, the board authorized a new share repurchase program of up to $6.0 billion, equivalent to approximately 5.8% of outstanding shares. This program underscores management’s view that the stock remains undervalued relative to intrinsic cash-flow generation. Separately, ADP declared a quarterly dividend of $1.70 per share, payable April 1 to shareholders of record March 13, representing a 67% payout ratio on trailing EPS and an annualized yield of 2.6%.