ADP stock edges lower as investors digest July earnings beat and FY 2027 guidance

Published on 09/06/2026 at 17:08 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

ADP stock trades below its recent high after the payroll specialist beat earnings expectations in late July and set new FY 2027 guidance, with investors weighing revenue growth, margins and a solid dividend.

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Automatic Data Processing, Inc. (ISIN US0530151036) stock closed at 277.62 USD on September 4, 2026, giving the payroll and HR services provider a market capitalization in the tens of billions as investors weigh a recent earnings beat and fresh guidance for fiscal year 2027.

July earnings beat and revenue growth

According to data compiled by MarketBeat, Automatic Data Processing last reported quarterly results on July 29, 2026, delivering earnings per share of 2.64 USD, which was 0.05 USD above the consensus estimate of 2.59 USD for the period.

In the same report, revenue for the quarter reached 5.47 billion USD, slightly ahead of analyst expectations of 5.44 billion USD, and representing a 6.8 percent increase compared with the same quarter of the prior year, when the company generated 2.26 USD in earnings per share.

Guidance, margins and dividend profile

The July 29, 2026 earnings release also included updated guidance for fiscal year 2027, with the company forecasting full year earnings per share in a range of 12.120 USD to 12.340 USD, while sell side analysts currently expect around 12.26 USD for the ongoing fiscal year, according to the same MarketBeat overview.

MarketBeat figures show that Automatic Data Processing generated a net margin of 20.11 percent in the latest reported quarter and a return on equity of 71.34 percent, underlining the profitability of its recurring payroll and HR services model, while consensus ratings point to a Hold stance with an average price target of 273.50 USD, close to the recent share price.

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More background on ADP stock

For additional figures, charts and news on Automatic Data Processing, you can explore an overview of the security and the latest disclosures.

ADP stock news and data Investor Relations

Payroll services as a growth driver

Automatic Data Processing generates much of its revenue from payroll processing, human capital management and related outsourcing services for businesses of all sizes, with the latest quarterly revenue of 5.47 billion USD indicating continued demand for technology driven solutions in workforce administration.

Stock level and investor perspective

As of the close on September 4, 2026, ADP stock at 277.62 USD stands modestly above the average analyst price target of 273.50 USD cited by MarketBeat, reflecting how investors are balancing solid earnings growth, a 6.8 percent year on year revenue increase and a dividend of 1.70 USD per share scheduled for payment on October 1, 2026 to shareholders of record as of September 11, 2026.