- Automatic Data Processing (NASDAQ: ADP) demonstrated strong financial performance in Q4 fiscal 2026, reporting $5.47 billion in revenues (a 7% increase) and adjusted EPS of $2.64, surpassing analyst expectations.
- Revenue growth was broad-based across its core segments, with Employer Services and Professional Employer Organization (PEO) Services both increasing by 7%, complemented by a 15% rise in interest income from client funds.
- Despite these robust results, analyst firm Citigroup (NYSE: C) issued a "Neutral" rating, indicating an expectation for the stock to perform in line with the market, with a stock price of $273.37 per share at the time of the rating.
Automatic Data Processing (NASDAQ: ADP) is a global company providing human resources (HR) and payroll services. It helps businesses manage tasks like paying employees and handling HR needs. With a market capitalization of around $109.28 billion, ADP is a major player in its industry.
On July 30, 2026, analyst firm Citigroup (NYSE: C) gave ADP a "Neutral" rating with a hold action. This suggests analysts believe the stock will perform in line with the market. At the time of this rating, the stock price was $273.37 per share.
This rating follows ADP's strong fourth-quarter fiscal 2026 results. The company reported quarterly revenues of $5.47 billion, which is a 7% increase from the previous year. Its adjusted earnings per share, a measure of profitability, reached $2.64, beating analyst estimates.
The company's revenue growth comes from its core business segments. Employer Services revenues rose 7% to $3.70 billion. Similarly, its Professional Employer Organization (PEO) Services, which handles HR for small businesses, saw revenues climb 7% to $1.80 billion.
ADP also earned more from interest on funds held for clients, which increased by 15% to $355 million. As highlighted by WSJ, the company projects continued revenue and earnings growth for the upcoming fiscal year 2027, based on its recent performance.