ADP Payrolls Come in Way Below Expectations.
Fresh Q4 earnings reports and private-sector jobs numbers are giving something of a jolt to market indexes.
Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada.
Automatic Data Processing, Inc. remains a Sell as valuation at 22x earnings is expensive relative to mid single-digit growth and macro headwinds. Recent results from ADP showed 6% revenue growth and margin expansion, but slowing employment growth and demographic trends pose ongoing risks. Fixed reinvestment in client funds offsets some rate cut impacts, with portfolio yield likely peaking by end of 2026.
Automatic Data Processing, Inc. (ADP) Q2 2026 Earnings Call Transcript
While the top- and bottom-line numbers for ADP (ADP) give a sense of how the business performed in the quarter ended December 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Automatic Data Processing (ADP) came out with quarterly earnings of $2.62 per share, beating the Zacks Consensus Estimate of $2.58 per share. This compares to earnings of $2.35 per share a year ago.
Automatic Data Processing lifted its annual revenue forecast on Wednesday and surpassed quarterly profit estimates, helped by steady demand for its payroll and human resources services.
Several large-cap stocks just issued big-time buyback capacity increases. These buyback boosts come as all three stocks have taken huge tumbles over the past several months, down 20% or more from their highs.
ADP approaches second-quarter fiscal 2026 earnings with revenues projected at $5.4B and EPS of $2.58, supported by steady Employer Services and PEO growth.
Evaluate the expected performance of ADP (ADP) for the quarter ended December 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
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