Automatic Data Processing is expected to report second-quarter fiscal 2026 revenue of approximately $5.4 billion, reflecting a 4.5% increase year-over-year, and adjusted earnings per share of $2.58. Growth in Employer Services, which processes payroll for more than 40 million workers globally, is projected at 5.0%, while the Professional Employer Organization (PEO) division is forecast to expand revenue by 6.2% as small and mid-market clients continue to outsource HR administration.

Employer Services should generate roughly $4.6 billion of the total revenue, supported by new business sales that rose 8.1% in the prior quarter. PEO revenues, expected at $800 million, remain buoyed by a 12.5% jump in client headcount over the last year. The company reported a net margin near 20% in the previous quarter, driven by 70% return on equity, indicating operational leverage across both segments.

On January 14, the board authorized a $6.0 billion stock repurchase program, equal to about 5.8% of outstanding shares, signaling confidence in long-term value. ADP also declared a quarterly dividend of $1.70 per share, representing an annualized yield of 2.6% and covering 67% of trailing twelve-month earnings. The dividend record date is March 13, with payment on April 1.

Thirteen research firms currently cover the stock, assigning an average rating of Hold, with two Buys, nine Holds and two Sells. The consensus twelve-month target price stands at $306.42. ADP has provided full-year 2026 EPS guidance of $10.81 to $11.01, implying growth of roughly 6% over analysts’ current estimates of $9.93 for the fiscal year.