
ADP Stock Forecast & Price Target
ADP Analyst Ratings
Bulls say
Automatic Data Processing (ADP) has demonstrated a strong growth trajectory, with Employer Services New Annual Recurring Revenue (ARR) experiencing approximately 20% growth in the first half of fiscal year 2026, positioning the company favorably for achieving revenue guidance in the latter half. Additionally, revenue from Employer Services has increased from $10.2 billion in fiscal year 2021 to $13.9 billion in fiscal year 2025, reflecting a compound annual growth rate (CAGR) of 7%. The complementary solutions segment has also seen robust growth, rising from $1.1 billion in fiscal year 2021 to $1.6 billion in fiscal year 2024, which equates to a CAGR of 13%, further enhancing the company's revenue prospects.
Bears say
Automatic Data Processing's stock faces a negative outlook due to declining margins in its Professional Employer Organization (PEO) segment, which decreased by 70 basis points primarily due to a higher proportion of zero-margin pass-throughs and increased selling expenses. Employment growth has significantly slowed, with a drop of 92,000 in nonfarm payrolls in February 2026 and average monthly gains of just 49,000 in 2025, pointing to macroeconomic uncertainty impacting client demand. Additionally, concerns about AI-related workforce reductions, coupled with challenges in the large enterprise human capital management (HCM) market, raise risks related to retention, pricing pressure, and overall growth potential.
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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