Automatic Data Processing, Inc. (NASDAQ:ADP) is included among the The 14 best dividend aristocrats to invest in for 2026.
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On December 16, Jefferies analyst Samad Samana downgraded Automatic Data Processing, Inc. (NASDAQ:ADP) to Underperform from Hold and cut the price target to $230 from $245. The company said it “has a good opinion” of management, but described the company’s fundamental outlook as “shaky.” The analyst pointed to market saturation, larger and larger competitors and falling interest rates as obstacles to growth in 2025. Jefferies said challenges are likely to increase, adding that ADP’s medium-term goals appear “difficult to achieve.”
In the first quarter of fiscal 2026, Automatic Data Processing, Inc. (NASDAQ:ADP) reported strong results. Revenue rose 7% and adjusted EPS also grew 7%. Management highlighted progress on key strategic priorities. The quarter included record sales volume and the small business portfolio showed healthy growth. Human resources outsourcing of employer services has once again gained momentum. Automatic Data Processing, Inc. (NASDAQ:ADP) noted that HCM demand remained relatively stable. There was a specific strength in ADP Lyric HCM.
ADP also announced the acquisition of Pequity, a provider of compensation management software. Management said the deal expands ADP’s ability to support more complex compensation planning needs for its clients.
Automatic Data Processing, Inc. (NASDAQ:ADP), commonly known as ADP, is a global provider of cloud-based human capital management solutions. Their services span payroll, human resources, tax, talent and benefits administration for organizations of all sizes.
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