Automatic Data Processing (1ADP) AI Stock Analysis
Automatic Data Processing
(Milan:1ADP)
No summary available
Automatic Data Processing (1ADP) vs. iShares MSCI Italy ETF (EWI)
- Market Cap
- EUR 118.39B
- Dividend Yield
- 2.20%
- Average Volume (3M)
- 19
- Price to Earnings (P/E)
- 26.2
- Beta (1Y)
- -0.70
- Revenue Growth
- 1.06%
- EPS Growth
- 5.17%
- Country
- Italy
- Employees
- 67,000
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Application
Automatic Data Processing Business Overview & Revenue Model
Company Description
Automatic Data Processing, Inc. (ADP) is a global provider of cloud-based solutions designed for human capital management (HCM). The company organizes its operations into two primary segments: Employer Services and Professional Employer Organization...
Automatic Data Processing Earnings Call Summary
The call was strongly positive. ADP delivered better-than-expected first-quarter revenue, margin, and EPS growth; raised consolidated revenue, client funds interest, pays per control, and adjusted EPS outlooks; and reported continued momentum in AI adoption, productivity, bookings, Lyric, embedded payroll, and PEO worksite employee growth. The main challenges were a softer start in global offerings, foreign-exchange headwinds, expected Employer Services retention pressure, flat PEO margins, and continued uncertainty around PEO SUI-related items, but these did not outweigh the broad operating and financial progress.
Q1-2027 Updates
Positive Updates
Negative Updates
Company Guidance
For fiscal 27, ADP maintained Employer Services revenue growth guidance of 4% to 7% for new business bookings, a 10 to 30 basis point decline in full year retention, and forecast pays per control growth of around 1%; it raised average client funds balances growth to a range of 4% to 5%, forecast a fiscal 27 average yield on its client funds portfolio of about 3.8%, and increased client funds interest revenue by $50 million to a range of $1.59 billion to $1.61 billion, while raising the net impact from its extended investment strategy by $45 million to the same range. ADP now expects fiscal 27 Employer Services revenue growth of about 6%, including close to half a point of FX headwind FY 27, total PEO revenues to grow by 5% to 7%, PEO revenue excluding zero margin pass throughs to grow by 3% to 5%, and average worksite employee growth of about 2%. Consolidated revenue guidance was increased to about 6% growth, while adjusted EBIT margin expansion remained at 70 to 90 basis points, the effective tax rate remained around 23%, and adjusted EPS growth was forecast at 10% to 12%.
Automatic Data Processing Risk Analysis
Automatic Data Processing disclosed 1 risk factors in its most recent earnings report. Automatic Data Processing reported the most risks in the "Legal & Regulatory" category.
Latest Risks Added
0 New RisksAutomatic Data Processing Peers Comparison
Overall Rating
PAYC80Outperform
PCTY76Outperform
INTU73Outperform
WDAY73Outperform
BILL61Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| PAYC | 80Outperform | $11.78B | 27.89 | 40.43% | 0.57% | 9.23% | 27.04% |
| PCTY | 76Outperform | $9.08B | 34.29 | 23.44% | ― | 11.04% | 22.52% |
| INTU | 73Outperform | $94.09B | 20.85 | 23.42% | 1.44% | 13.90% | 19.57% |
| WDAY | 73Outperform | $47.75B | 39.99 | 16.78% | ― | 13.83% | 126.19% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| BILL | 61Neutral | $4.27B | -433.97 | -0.30% | ― | 13.03% | -150.40% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IT:1ADP | Automatic Data Processing | 265.55 | 48.84 | 22.54% | |
| INTU | Intuit Inc. | 344.72 | -301.50 | -46.66% | |
| WDAY | Workday | 197.94 | -34.16 | -14.72% | |
| PAYC | Paycom Software | 262.99 | 81.00 | 44.51% | |
| PCTY | Paylocity Holding | 171.12 | 25.66 | 17.64% | |
| BILL | BILL Holdings, Inc. | 49.82 | 3.30 | 7.09% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.