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Automatic Data Processing Inc. (NASDAQ: ADP) Maintains Hold Rating Amid Strong Financial Performance

  • ADP's quarterly revenues reached $5.18 billion, surpassing analyst estimates and indicating a 7% year-over-year growth.
  • The company's adjusted EPS was $2.49, exceeding expectations, with a 7% increase in adjusted EBIT to $1.3 billion.
  • Despite a 5% stock decline, ADP's robust financial position is reflected in its $7.94 billion cash reserves, suggesting potential for future growth.

Automatic Data Processing Inc. (NASDAQ: ADP) is a prominent player in the human resources and payroll services industry. The company provides a range of services, including payroll processing, talent management, and benefits administration. ADP competes with other major firms like Paychex and Workday. On October 30, 2025, Cowen & Co. maintained its "Hold" rating for ADP, with the stock priced at approximately $263.59.

Despite ADP's strong fiscal first-quarter results, the stock experienced a 5% decline. The company reported quarterly revenues of $5.18 billion, surpassing the analyst consensus estimate of $5.14 billion. This represents a 7% increase year-over-year, driven by growth in its Employer Services and PEO segments. Employer Services generated $3.49 billion, while PEO Services contributed $1.69 billion.

ADP's quarterly adjusted earnings per share (EPS) were $2.49, exceeding the expected $2.44. Adjusted earnings before interest and taxes (EBIT) rose by 7% to $1.3 billion, maintaining a steady adjusted EBIT margin of 25.5%. Net earnings increased by 6% year-over-year to $1.01 billion. These positive financial metrics highlight ADP's strong performance despite the stock's decline.

As of September 30, ADP held $7.94 billion in cash and equivalents, reflecting a robust financial position. The stock is currently priced at $263.28, showing a slight increase of approximately 0.79% or $2.06. During the trading day, the stock fluctuated between a low of $260.22 and a high of $265.92, indicating some volatility.

ADP's market capitalization stands at approximately $106.65 billion, with a trading volume of 1,047,374 shares on the NASDAQ exchange. Over the past year, the stock has reached a high of $329.93 and a low of $260.22. Despite the recent decline, ADP's strong financial results and market position suggest potential for future growth.