Automatic Data Processing (ADP) stock
Industrials · Human Resource & Employment Services
Automatic Data Processing (ADP) is a Human Resource & Employment Services company in the Industrials sector, headquartered in Roseland, New Jersey. As of October 23, 2026, ADP closed at $304.16, a market capitalization of $120.52 billion, the 103rd largest company in the S&P 500. Over the last twelve months it generated $21.95 billion in revenue (+7% year over year) and $4.78 billion in free cash flow. The stock trades at 27.8x trailing earnings and 22.7x forward earnings.
- 1-year total return: +11.2% (dividends reinvested)
- 5-year return: +9.3% a year
- 52-week range: $188.16 – $309.40
- Gross margin 48.7%, operating margin 23.5%
- Dividend yield: 2.24%, 42 straight years of increases
- FI Handbook report card: B- across 10 metrics
- 11th largest of 83 Industrials stocks in the S&P 500
ADP price chart
1Y price change: +8.0% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| ADP | +15.4% | +20.9% | +11.2% | +10.7% | +9.3% | +15.9% | +15.4% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1980.
ADP key statistics
- Market cap
- $120.5B
- #103 in S&P 500
- P/E (TTM)
- 27.8x
- Forward P/E
- 22.7x
- EPS (TTM)
- $10.94
- Revenue (TTM)
- $21.9B
- +7%
- Free cash flow
- $4.8B
- Gross margin
- 48.7%
- Operating margin
- 23.5%
- Return on equity
- 72.2%
- Dividend yield
- 2.24%
- 52-week range
- $188.16 – $309.40
- Beta
- 0.84
- Price / sales
- 5.5x
- EV / EBITDA
- 19.0x
- Debt / equity
- 0.91x
- Employees
- 67,000
ADP report card
B-Ten fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth6.8%C
- Gross margin48.7%B
- Operating margin23.5%B
- FCF margin21.8%B
- Return on equity72.2%A
- Net debt / EBITDA0.2xB
- Forward P/E22.7xC
- PEG ratio2.5xD
- Shareholder yield4.0%B
- Share count change / yr-1.2%B
Automatic Data Processing financials
Revenue went from $12.4B in fiscal 2017 to $21.9B in fiscal 2026, growing 6.6% a year.
| Fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $12.4B | $13.3B | $14.1B | $14.6B | $15.0B | $16.5B | $18.0B | $19.2B | $20.6B | $21.9B |
| Gross profit | $5.1B | $5.5B | $6.1B | $6.1B | $6.4B | $7.0B | $8.1B | $8.7B | $9.5B | $10.2B |
| Net income | $1.8B | $1.9B | $2.3B | $2.5B | $2.6B | $2.9B | $3.4B | $3.8B | $4.1B | $4.4B |
| EPS (diluted) | $3.97 | $4.25 | $5.24 | $5.70 | $6.07 | $7.00 | $8.21 | $9.10 | $9.98 | $10.94 |
| Buybacks | $1.3B | $989.3M | $937.7M | $1.0B | $1.4B | $2.0B | $1.1B | $1.2B | $1.3B | $2.1B |
| Dividends paid | $995.2M | $1.1B | $1.3B | $1.5B | $1.6B | $1.7B | $1.9B | $2.2B | $2.4B | $2.6B |
| Diluted shares | 450.3M | 443.3M | 437.6M | 432.7M | 428.1M | 421.1M | 415.7M | 412.2M | 408.7M | 403.3M |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into ADP?
A reverse DCF asks what growth the current price requires. With an enterprise value of $121.8B and $4.8B of trailing free cash flow, Automatic Data Processing needs to grow free cash flow about 16.7% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return.
P/E ratio history
Current 27.8x vs. median 27.8x (10th–90th percentile 17.4x–34.6x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
ADP dividend
- Dividend yield
- 2.24%
- Annual dividend
- $6.80
- Years of increases
- 42
- 5-yr dividend growth
- 11.5%
- per year
- Payout ratio
- 61%
- Payments per year
- 4
Regular dividends per share by calendar year; special dividends excluded. Current year omitted until complete.
ADP analyst price targets
15 analysts' average 12-month target is $290.40 (-5% vs. $304.16). Targets range from $225.00 to $340.00. 22% rate it a buy.
ADP earnings
Next report: October 28, 2026. Automatic Data Processing has beaten EPS estimates 8 quarters in a row. Last quarter's revenue was $5.5B (+7% year over year).
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Jul 28, 2026 | $2.60 | $2.64 | +1.6% |
| Apr 29, 2026 | $3.30 | $3.37 | +2.3% |
| Jan 28, 2026 | $2.57 | $2.62 | +2.0% |
| Oct 29, 2025 | $2.44 | $2.49 | +1.9% |
| Jul 30, 2025 | $2.23 | $2.26 | +1.5% |
| Apr 30, 2025 | $2.97 | $3.06 | +2.9% |
| Jan 29, 2025 | $2.30 | $2.35 | +2.4% |
| Oct 30, 2024 | $2.21 | $2.33 | +5.3% |
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ADP news
- Insights Into ADP (ADP) Q1: Wall Street Projections for Key Metrics · Oct 23, 2026
- ADP Gears Up to Report Q1 Earnings: What's Next for Investors? · Oct 23, 2026
- Automatic Data Processing (ADP) Stock Could Trade At A 17% Premium On Cash Flow · Oct 22, 2026
- Automatic Data Processing’s Quarterly Earnings Preview: What You Need to Know · Oct 22, 2026
- ADP National Employment Report Preliminary Estimate for October 3, 2026 · Oct 20, 2026
ADP stock FAQ
What is ADP's market cap?
Automatic Data Processing's market capitalization is $120.52 billion as of October 23, 2026, ranking 103rd in the S&P 500.
What is ADP's P/E ratio?
ADP trades at a trailing price-to-earnings ratio of 27.8x and a forward P/E of 22.7x. Its median P/E over the period we track is 27.8x.
Does ADP pay a dividend?
Yes. Automatic Data Processing pays $6.80 per share a year, a 2.24% yield. It has raised its dividend 42 years in a row. Dividends grew 11.5% a year over the last five years.
How much has ADP stock returned?
Including reinvested dividends, ADP returned +11.2% over one year, +9.3% a year over five years, +15.9% a year over ten years through October 23, 2026.
Is ADP stock overvalued?
At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies Automatic Data Processing must grow free cash flow about 17% a year for the next decade. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.
What is the ADP price target?
15 analysts cover ADP with an average 12-month price target of $290.40, -5% from the current price. 22% of them rate it a buy.
When does ADP report earnings?
Automatic Data Processing is expected to report earnings on October 28, 2026. It has beaten EPS estimates 8 quarters in a row.
How many employees does Automatic Data Processing have?
Automatic Data Processing has about 67,000 full-time employees, or $327,573 of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology