Automatic Data Processing is expected to report second-quarter fiscal 2026 results with revenues of approximately $5.4 billion, up 4.7% year-over-year, and adjusted earnings per share of $2.58. Growth is being driven by a 6% increase in Employer Services revenue, supported by client retention rates above 90%, and continued expansion in the Professional Employer Organization segment, which added 2,500 new clients during the quarter.

Thirteen equities research firms cover ADP, assigning an average rating of Hold. Two analysts recommend Sell, nine rate it Hold and two rate it Buy. The mean 12-month price target is $306.42, spanning from $230.00 to $340.00. Key recent changes include JPMorgan lowering its target from $340.00 to $295.00 and Wells Fargo reducing its objective from $288.00 to $272.00.

On January 14, ADP’s board authorized a new $6 billion share repurchase program, representing up to 5.8% of outstanding shares. The company also declared a quarterly dividend of $1.70 per share, payable April 1 to holders of record March 13, implying a 2.6% yield and a payout ratio near 67%.

In January, two vice presidents sold a combined 1,349 shares for total proceeds of $355,852, reducing their holdings by roughly 6%. Over the past three months, insiders have sold 2,249 shares valued at $589,852. Institutional investors currently own 80.0% of shares, with recent new stakes reported by several wealth advisory firms, each investing between $25,000 and $28,000 in the second and third quarters.