ADP
Automatic Data Processing, Inc.
ADP
257.68USD
-2.38%
Oct 05, 2026
Price
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Price Action
Price action is under distribution
Longer-term context reads early trend, with a near-term setup of constructive pullback.
EntryBreakout + retest
Price broke through the weekly SMA200, then retested it constructively and recovered — a fresh structural entry rather than a chase.
Key Financials
- Market Cap
- $102.4B
- Avg Volume (60D)
- 2.2M
- Revenue Growth YoY
- +6.7%
- Gross Margin
- +48.7%
- Operating Margin
- +26.4%
- Free Cash Flow Yield
- +5.1%
- Distance from 200DMA
- +9.7%
- Next Earnings
- 2026-10-28
- P/E
- 23.2x
- EV / Sales
- 4.7x
60 sessions
FY2026 vs FY2025
Trailing twelve months
Market metrics as of Oct 2, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026
Fundamentals & Valuation
Two of the three valuation perspectives say fair; peers is the dissenting view.
Automatic Data Processing, Inc. has a Fair valuation stance because the price broadly reflects how much growth and cash flow it delivers per turn of revenue multiple, with upside and risk reasonably balanced.
Company Research
Thesis
ADP is a direct, scaled provider of cloud HCM, payroll processing and PEO services to small, mid-sized and enterprise employers globally. ADP has genuine, direct exposure to the multi-company shift toward digitized payroll, HR administration and compliance outsourcing.
Opportunity
Limited opportunity
Employer demand for cloud platforms and outsourced services that automate payroll, HR administration, time management, benefits, tax filing and workforce-compliance workflows.
Key risk
Economic downturn reducing employment and payroll volumes.
Narrative & Theme
Workforce Administration Digitization
Part of Cloud HCM, Payroll and Compliance Outsourcing, with moderate fit.
ADP has genuine, direct exposure to the multi-company shift toward digitized payroll, HR administration and compliance outsourcing.
Narrative HeatNeutral5.7 / 10
Theme HeatNeutral5.0 / 10
This is the company’s own research reading. The canonical heat measurement for this story has not run.
Business & Markets
Technology · Software - Application
What they do
Automatic Data Processing, Inc. provides cloud-based human capital management solutions globally through two segments: Employer Services and Professional Employer Organization (PEO). It offers software platforms and HR outsourcing services to manage payroll, compliance, and workforce management.
How it earns
The company primarily generates revenue through subscription-based and service fees for its cloud software platforms and HR outsourcing solutions.
Products & services
RUN Powered by ADP
ADP Workforce Now
ADP Lyric HCM
Customers & end markets
Small businesses
Mid-sized and large businesses
Market position
ADP is a market leader in cloud-based human capital management and payroll services.
Demand drivers
Medium cyclicality
Demand for payroll and HR services is somewhat stable but can be affected by economic cycles impacting employment levels.
Peers
Companies validated as economically comparable to ADP — similar business, revenue model and scale.
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