Automatic Data Processing, Inc. (ADP)
ADP is the engine room behind the scenes for millions of businesses, handling the complex tasks of paying staff and managing human resources.
Is Automatic Data Processing, Inc. a good stock for a UK beginner?
The honest version: ADP is the engine room behind the scenes for millions of businesses, handling the complex tasks of paying staff and managing human resources.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Dominance in the global digital payroll market
Major security breach or loss of market share
What does Automatic Data Processing, Inc. do?
ADP provides the software and services that help companies manage their payroll, taxes, and employee benefits. The income flows in from charging businesses a fee to handle these essential, recurring administrative tasks. Watch how successfully they hold on to existing clients while winning new ones in an increasingly digital workplace.
On our factor screen it looks strongest on quality and momentum, and weakest on value.
- ✓Pays a dividend - about 2.5% a year
- ✓Growing - revenue up about 7% over the year
- ✓Very profitable - turns about 20% of sales into profit
- ✓Strong return on shareholder money (ROE 72%)
- Highly reliable business model with recurring revenue
- Strong profit margins showing efficient operations
- Established market leader with a long track record
- Cybersecurity threats to sensitive payroll data
- Competition from newer, cloud-native software companies
- Economic downturns reducing the number of employees businesses need to pay
What do Automatic Data Processing, Inc.'s numbers mean?
How much money does Automatic Data Processing, Inc. make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Automatic Data Processing, Inc. pay a dividend?
Yes - Automatic Data Processing, Inc. currently pays a dividend of about 2.5% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
When does Automatic Data Processing, Inc. report earnings, and how did recent quarters go?
Automatic Data Processing, Inc. is next scheduled to report on about 2026-10-28 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-28 | $2.60 | $2.64 | Beat +2% |
| 2026-04-29 | $3.30 | $3.37 | Beat +2% |
| 2026-01-28 | $2.57 | $2.62 | Beat +2% |
| 2025-10-29 | $2.44 | $2.49 | Beat +2% |
| 2025-07-30 | $2.23 | $2.26 | Beat +2% |
| 2025-04-30 | $2.97 | $3.06 | Beat +3% |
Across the last 6 quarters here, Automatic Data Processing, Inc. came in ahead of what analysts expected 6 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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Hewlett Packard EnterpriseWhat are the scenarios for Automatic Data Processing, Inc.?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Automatic Data Processing, Inc.?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Highly reliable business model with recurring revenue
- Strong profit margins showing efficient operations
- Established market leader with a long track record
- High price-to-book ratio suggests the shares are not cheap
- Recent share price decline reflects investor caution
- Relies heavily on the health of the broader job market
- Cybersecurity threats to sensitive payroll data
- Competition from newer, cloud-native software companies
- Economic downturns reducing the number of employees businesses need to pay
The write-up's own warning lights — if these start happening, the case above changes.
- A significant drop in client retention rates
- A major regulatory change that disrupts the payroll industry
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.