Automatic Data Processing, Inc. (ADP)

Over the past six months, ADP's stock performance has been influenced by its consistent earnings beats and strategic acquisitions. In Q4 Fiscal 2024, ADP reported strong results with revenue and EPS growth, and client satisfaction reached a new all-time high. The acquisition of WorkForce Software enhanced ADP's capabilities in time and attendance and broader workforce management. Q1 Fiscal 2025 also showed strong results with revenue and EPS growth, and record new business bookings. Q2 Fiscal 2025 saw ADP surpass analysts' expectations with revenue and EPS growth, and a strategic partnership with Fiserv was announced. Q3 Fiscal 2025 reported solid results with revenue and EPS growth, and the company narrowed its fiscal 2025 ES margin guidance. Q4 Fiscal 2025 again surpassed analysts' expectations for both EPS and revenue, but the stock experienced a decline in pre-market trading. As of September 30, 2025, ADP's stock was up 6.06% over the past 12 months but down 2.09% over the past 30 days, with analyst consensus rating generally "hold."

While specific quarterly breakdowns of product and service demand are not explicitly detailed, several factors suggest seasonality in ADP's business. ADP's earnings calls have referenced an "important selling season ahead" in Q2 and a "healthy new business pipeline at the end of the quarter" in Q1, indicating periods of increased sales activity. Client funds interest revenue is influenced by interest rates and the volume of client funds, which can fluctuate with employment levels and economic activity. Seasonal hiring by businesses during peak times impacts the demand for ADP's payroll and HR services. The ADP National Employment Report indirectly reflects the demand for ADP's services. The accounting industry experiences seasonal demands related to tax services and year-end financial activities, which can influence the demand for integrated payroll, HR, and finance systems.

Automatic Data Processing, Inc. (ADP) is a global leader in human capital management (HCM) solutions, providing software and services to businesses of all sizes. ADP operates in the Professional Services, Business Services, Software, and HR Tech sectors, focusing on human resources management software and services, including payroll, tax compliance, and HR management. ADP offers comprehensive payroll processing, HR management solutions, benefits administration services, compliance assistance, and PEO services under the ADP TotalSource brand. The company provides cloud-based HCM platforms like RUN Powered by ADP, ADP Workforce Now, ADP Vantage HCM, and ADP Lyric HCM, and has integrated AI tools like ADP Assist to enhance client experience and internal productivity.

ADP's global headquarters is located in Roseland, New Jersey. The company has a substantial global presence with key office locations across North America, Europe, and Asia, including major cities like London, Paris, Tokyo, and Bangalore. ADP provides payroll, global HCM, and outsourcing services in more than 140 countries and markets, offering local expertise to support global workforce strategies.

ADP maintains a strong brand reputation, evidenced by numerous awards and recognitions in the past year (2023-2025). ADP has been recognized as one of Fortune’s World’s Most Admired Companies for 19 consecutive years. ADP has been recognized as a leader in Benefits Administration by NEAT by NelsonHall. ADP has been recognized as a leader in Multi-Process Human Resources Outsourcing by PEAK by Everest Group for 13 consecutive years. ADP has been recognized as a leader in Multi-Country Payroll (MCP) Solutions by PEAK by Everest Group for 10 years. ADP has been recognized as a leader in Payroll Services by NEAT by NelsonHall for 10 years. ADP has been recognized as an Overall Leader and Exemplary Provider in Workforce Management Suites for ADP Workforce Manager and ADP WorkForce Suite. ADP has been recognized as a leader in the People Analytics Platforms PEAK assessment for ADP® DataCloud. ADP Assist received the Generative AI Innovation Award in the AI Breakthrough Awards. ADP has been recognized as a Top Ranked Company on Corporate Equality Index by the Human Rights Campaign Foundation. ADP has been recognized as one of the Best Companies for Multicultural Women by Seramount. ADP has received multiple awards from Comparably for Best CEO, Happiest Employees, Best Global Culture, Best Career Growth, and Best Leadership Teams. ADP has been recognized as a Best Place to Work for Disability Inclusion by Disability:IN.

Institutional investors hold a significant majority of Automatic Data Processing, Inc. shares, accounting for approximately 83% of the company's ownership. Major institutional shareholders include Vanguard Group Inc., BlackRock, Inc., and State Street Corp. Individual insiders have shown some selling activity in the past three months.