TORVANTA
Industrials · S&P 500 · data as of 2026-10-05

ADP stock analysis: Automatic Data Processing

Automatic Data Processing (ADP) is an S&P 500 company in Human Resource & Employment Services. It grades strongest on profitability.

The model's view of ADP · subscribers

Where ADP ranks among the 1,500 U.S. stocks the model scores each trading day, its expected return, the evidence for and against it, and whether the model portfolio holds it. The grades below describe the company's data; they are not the model's view.

See plans
What's happening with ADP · updated 2026-10-05 · from prices and SEC filings

ADP price performance

ADP against the S&P 500, one year
-20%+0%+20%S&P 500 +18%ADP -8%2025-09-292026-10-05
Year to date+3.4%S&P 500 +14.5% · behind by 11.1 pts
1 year-8.1%S&P 500 +17.0% · behind by 25.1 pts
3 years+14.9%S&P 500 +89.3% · behind by 74.4 pts
5 years+42.8%S&P 500 +91.3% · behind by 48.5 pts

Total returns with dividends reinvested.

ADP factor grades

Each grade compares ADP with the rest of its sector (A+ best, F worst); the numbers behind it are shown with the typical figure for its peers.

B-ValueP/E 23.8x (sector 27.2x)FCF yield 5.3% (sector 4.0%)
CGrowthRevenue growth +7% (sector +7%)EPS growth +10% (sector +9%)
A-Profitability
BMomentum12-month change -8%From 52-wk high -9%

ADP key statistics

SectorIndustrials
IndustryHuman Resource & Employment Services
IndexS&P 500
Market value$103.4B
Revenue growth (y/y)+7%
Free-cash-flow yield5.3%
Dividend yield2.6%
Next earnings (expected)2026-10-28
Valuation measures
Market value$103.4B
Enterprise value$104.1B
P/E (trailing)23.8x
Forward P/E (Torvanta estimate)22.6x
PEG (Torvanta estimate)4.47
Price / sales4.7x
Price / book17.1x
EV / revenue4.7x
Financial highlights
Revenue, last 12 months$21.9B
Net income, last 12 months$4.4B
EPS, last 12 months (GAAP)$10.94
Gross margin46.4%
Net margin20.1%
Return on equity72.2%
Cash$4.2B
Total debt$5.0B
Debt / equity0.82x
Current ratio1.05x

Company figures from its latest SEC filings; market value and returns from end-of-day prices.

ADP earnings trends

Revenue vs earnings
$0$1.5B$3.0B$4.5B$5.9BSep 2024 Revenue: $4.8BDec 2024 Revenue: $5.0BMar 2025 Revenue: $5.6BJun 2025 Revenue: $5.1BSep 2025 Revenue: $5.2BDec 2025 Revenue: $5.4BMar 2026 Revenue: $5.9BJun 2026 Revenue: $5.5BSep 2024 Net income: $1.0BDec 2024 Net income: $1.0BMar 2025 Net income: $1.2BJun 2025 Net income: $910.7MSep 2025 Net income: $1.0BDec 2025 Net income: $1.1BMar 2026 Net income: $1.4BJun 2026 Net income: $1.0BSep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026Net margin: 19.8%Net margin: 19.1%Net margin: 22.5%Net margin: 17.8%Net margin: 19.6%Net margin: 19.8%Net margin: 22.9%Net margin: 17.9%0%11%23%■ Revenue ■ Net income ━ Net margin
Earnings per share$0.0$0.8$1.7$2.5$3.4Sep 2024 EPS (GAAP, diluted): $2.3Dec 2024 EPS (GAAP, diluted): $2.4Mar 2025 EPS (GAAP, diluted): $3.1Jun 2025 EPS (GAAP, diluted): $2.2Sep 2025 EPS (GAAP, diluted): $2.5Dec 2025 EPS (GAAP, diluted): $2.6Mar 2026 EPS (GAAP, diluted): $3.4Jun 2026 EPS (GAAP, diluted): $2.5Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026■ EPS (GAAP, diluted) Change from a year earlier: Sep 2025 +6% · Dec 2025 +11% · Mar 2026 +10% · Jun 2026 +10%

From the company's 10-Q and 10-K filings with the SEC.

Automatic Data Processing financials (from SEC filings)

Fiscal yearFY2022FY2023FY2024FY2025FY2026
Revenue$16.5B$18.0B$19.2B$20.6B$21.9B
Net income$2.9B$3.4B$3.8B$4.1B$4.4B
EPS (GAAP)$7.00$8.21$9.12$9.98$10.94

ADP earnings history

ReportedEPS (GAAP)EPS y/yRevenue y/yStock vs S&P 500, 2 days
2026-07-29$2.45+10%+7%-0.2%
2026-04-29$3.38+10%+7%+5.4%
2026-01-28$2.62+11%+6%-3.1%
2025-10-29$2.49+6%+7%-5.4%
2025-07-30$2.23+10%+8%+0.8%
2025-04-30$3.06+6%+6%+0.2%

About Automatic Data Processing

HeadquartersRoseland, NJ
Industry (SEC code)Services-Computer Processing & Data Preparation
Fiscal year endsJune 30
Incorporated inDE
Listed onNasdaq

From the company's SEC registration record.

Companies similar to ADP

CompanyMarket valueP/ERevenue growthOperating margin12-month change
ADP Automatic Data Processing$103.4B23.8x+7%n/a-8%
TT Trane Technologies$103.6B35.6x+7%17.9%+12%compare
PWR Quanta Services$102.7B78.3x+26%6.2%+62%compare
VRT Vertiv Holdings$97.6B57.4x+26%18.9%+58%compare
JCI Johnson Controls$95.7B28.4x+15%n/a+46%
HWM Howmet Aerospace$91.6B49.5x+18%27.4%+22%
LMT Lockheed Martin$116.9B18.7x+7%11.9%+3%

All Industrials stock ratings

Frequently asked questions

Is ADP stock a buy?

Torvanta does not tell individuals what to buy. Its grades for ADP are shown above. Subscribers see the model's rank, expected return and whether the model portfolio holds it. This is research, not a recommendation.

What is ADP's P/E ratio?

ADP trades at about 23.8 times its last 12 months of GAAP earnings reported to the SEC, and about 22.6 times Torvanta's own estimate of the next 12 months.

When does ADP report earnings next?

Based on its filing history, Torvanta expects Automatic Data Processing to report around 2026-10-28.

Does ADP pay a dividend?

Yes. Its dividend yield is about 2.6%, and it has raised its dividend 10 years in a row.

How has ADP performed against the S&P 500?

Over the past year ADP returned -8.1%, against +17.0% for the S&P 500, dividends reinvested.

See the model's view

Subscribers get the model's rank and expected return for every covered company, the reasoning behind each, and the Torvanta model portfolio's trades each trading day, sized and explained, at three risk levels.

See plans Or get the free weekly newsletter

Torvanta is research only - not investment advice and not a recommendation to buy or sell any security. Grades describe a company's reported data against its sector; they are not the model's view, change as data changes and can be wrong. Financial figures come from the company's SEC filings; returns include reinvested dividends. Past performance does not predict future results.

All stock ratings · Stock lists · AI stock research · Model portfolio · Research · Disclaimer