Automatic Data Processing, Inc. (ADP)

Over the past six months, ADP's stock price increased by 21.69%, closing at $300.90 on July 21, 2025, and reaching an all-time high of $329.93 on June 5, 2025. Recent events influencing the stock include the ADP National Employment Report indicating a decrease in private sector jobs, the announcement of the Fourth Quarter Fiscal 2025 Financial Results release date, and the launch of a CPR education initiative via the ADP Mobile Solutions app. ADP reported strong Q3 2025 results with revenue and EPS growth, updating its full-year guidance, and its debt-to-equity ratio improved, with gross and net profit margins rising.

Demand for ADP's products and services is generally resilient due to the essential and non-discretionary nature of its offerings. The company's business model, characterized by recurring revenue, float income, and disciplined share buybacks, contributes to consistent earnings per share growth. While specific monthly demand seasonality data is not explicitly detailed, ADP's "Seasonality Profile" tracks historical price patterns and win rates by month, suggesting some seasonal trends in stock performance. The fundamental demand for HCM solutions is expected to remain strong as businesses increasingly seek to outsource HR functions.

ADP is a global provider of human capital management (HCM) solutions and business process outsourcing (BPO) services, operating in the business services and software industries. The company's core business assists employers with HR functions through two primary segments: Employer Services, which provides cloud-based platforms and HR outsourcing solutions, and Professional Employer Organization (PEO) Services, which offers HR and employment administration outsourcing solutions through a co-employment model.

ADP has a significant global presence, operating in over 140 countries and territories across North America, Latin America, Europe, Asia, and Africa, with a strong foothold in the United States, Canada, and Europe. The majority of its net sales originate from the United States (88.2%), followed by Europe (7.5%), Canada (2.5%), and other regions (1.8%).

ADP maintains a strong brand reputation, cultivated over several decades, and benefits from its intangible assets. The company has been featured on Fortune Magazine's "World's Most Admired Companies" List for 14 consecutive years and recognized by DiversityInc as a top company for diversity and inclusion in the United States for 11 consecutive years. ADP has received various industry awards for its products, established itself as a thought leader through the ADP Research Institute, hosts client engagement events, and is advancing its embedded payroll partnership with Fiserv. The company's acquisition of WorkForce Software and investments in Generative AI are enhancing its global enterprise HCM offerings.

ADP is predominantly owned by institutional shareholders, who collectively hold approximately 80.51% of the company's stock, while retail investors account for about 17.39% ownership, and ADP insiders hold 2.10%. Key institutional owners include Vanguard Group Inc., BlackRock Inc., and State Street Corp. Henry Taub, the company's founder, is the largest individual shareholder, possessing 4.98 million shares, which represents 1.23% of the company.