
ADP Stock Forecast & Price Target
ADP Analyst Ratings
Bulls say
Automatic Data Processing (ADP) has demonstrated robust growth in its Employer Services segment, with new annual recurring revenue (ARR) estimated to increase by approximately 20% in the first half of fiscal year 2026, setting a strong foundation for revenue guidance in the latter half. Additionally, the company has realized significant growth in complementary solutions revenue, escalating from $1.1 billion in fiscal year 2021 to $1.6 billion in fiscal year 2024, reflecting a compound annual growth rate (CAGR) of 13%. Moreover, the total revenue from the Employer Services segment has risen from $10.2 billion in fiscal year 2021 to $13.9 billion in fiscal year 2025, highlighting a consistent growth trajectory with a CAGR of 7%.
Bears say
Automatic Data Processing's stock faces a negative outlook primarily due to declining PEO margins, which fell 70 basis points in fiscal Q2, driven by an increase in zero-margin pass-throughs outpacing service revenue growth and heightened selling expenses. Additionally, the slowdown in employment growth, exemplified by a decline of 92,000 nonfarm payrolls in February 2026 and an average monthly gain of only 49,000 in 2025, reflects macroeconomic uncertainties that could hinder revenue generation. Furthermore, risks associated with a stagnant large enterprise market, retention pressures, and potential pricing erosion exacerbate concerns regarding ADP's growth strategy in the human capital management sector.
This aggregate rating is based on analysts' research of Automatic Data Processing and is not a guaranteed prediction by Public.com or investment advice.
ADP Analyst Forecast & Price Prediction
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