Automatic Data Processing

ADP

Market cap $88.7B

Throughout the first quarter of the year, the tech sector was a laggard as fears of an artificial intelligence (AI) bubble carried over from the selloff that began in October 2025.

ADP (ADP) reported earnings 30 days ago. What's next for the stock?

Automatic Data Processing, Inc. (ADP) Presents at TD Cowen's 54th Annual Technology, Media & Telecom Conference Transcript

ROSELAND, N.J., May 27, 2026 /PRNewswire/ -- For the four weeks ending May 9, 2026, U.S. private employers added an average of 35,750 jobs per week, according to the NER Pulse, a weekly update of the monthly ADP National Employment Report (NER).

Automatic Data Processing gains from cloud-based HCM growth, strategic acquisitions & shareholder returns, while rising competition and labor costs pose risks.

CGI reported a good quarter with revenue up 3.3% to $4.16B and diluted EPS up 10.6% to $2.09. Revenue growth was driven by acquisitions. ADP reported a strong quarter with revenue up 7% and adjusted EPS up 12%. Employer Services grew 7% to $3.3B on strong client retention and new business bookings. Since I started this portfolio in September 2017, I have received a total of $36,112.67 CAD in dividends.

Automatic Data Processing, Inc. (ADP) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript

Automatic Data Processing NASDAQ: ADP President and CEO Maria Black said the human capital management provider is seeing a “generally stable” but still muted labor environment, while positioning the company for what she described as a “defining moment” for the HCM industry.

ROSELAND, N.J., May 19, 2026 /PRNewswire/ -- For the four weeks ending May 2, 2026, U.S. private employers added an average of 42,250 jobs per week, according to the NER Pulse, a weekly update of the monthly ADP National Employment Report (NER).

With a wide moat, solid growth prospects, and a safe payout, Automatic Data Processing is a Dividend King that arguably has it all. The company recently raised its guidance for FY 2026 to +6% to +7% for revenue growth and +10% to +11% for adjusted diluted EPS growth. ADP sports an AA- S&P credit rating with a stable outlook.