Alpha Score of 40 reflects weak overall profile with poor momentum, weak value, moderate quality. Based on 3 of 4 signals — score is capped at 90 until remaining data ingests.
Automatic Data Processing Inc. (ADP) continues to demonstrate consistent operational performance, evidenced by a 6.6% year-over-year revenue growth rate and an 8.6% increase in earnings per share. The company currently maintains a net margin of 20.0%, reflecting stable profitability within the industrial services sector. Despite these steady metrics, the stock is trading at a P/E ratio of 36.06, which suggests a premium valuation relative to its current earnings of $5.41 per share. ADP is currently positioned toward the higher end of its 52-week range of $188.79 to $326.81, indicating sustained investor interest despite broader market fluctuations. The internal Alpha Score of 32.4 is anchored by a quality sub-score of 61.7 and a value sub-score of 47, while the momentum sub-score remains low at 5.5. These figures collectively highlight a company prioritized for its fundamental stability rather than rapid price appreciation. Investors should monitor whether the current valuation can be supported by sustained margin expansion or if future earnings growth will be required to justify the existing P/E multiple throughout the remainder of the quarter.
Automatic Data Processing, Inc. (ADP) filed its Form 10-Q for the second quarter ended December 31, 2025. The filing details the company's financial position and operational segments, including Employer Services and Professional Employer Organization (PEO) Services. During the second quarter of fiscal 2026, ADP completed the acquisition of WorkForce Software, which was finalized in October 2024. The company allocated the purchase price across various intangible assets, including technology-based assets, customer and partner relationships, and trade names. ADP maintains a diversified investment portfolio for funds held for clients, consisting of money market funds, U.S. Treasury securities, corporate debt securities, asset-backed securities, and foreign government debt. The company continues to utilize various credit facilities, including a 364-day credit facility and facilities expiring in June 2029 and June 2030. Debt obligations include senior notes due in 2028, 2030, 2032, and 2034. Operating expenses for the company are categorized into operating expenses, selling, general, and administrative expenses, and research and development expenses. The company's capital structure remains consistent with previous periods, involving common stock, additional paid-in capital, retained earnings, and treasury stock. The filing provides a comprehensive breakdown of financial instruments and fair value measurements, confirming the company's liquidity position and ongoing management of client funds.
| Date | Insider | Role | Type | Shares | Value |
|---|---|---|---|---|---|
| Mar 16, 26 | D'Ambrosio Christopher | Corp. VP | SELL | 543 | $113K |
| Feb 17, 26 | D'Ambrosio Christopher | Corp. VP | SELL | 543 | $115K |
| Feb 6, 26 | Michaud Brian L. | Executive VP | SELL | 1.0K | $234K |
| Feb 5, 26 | Foskett David | Corp. VP | SELL | 266 | $63K |
| Jan 13, 26 | D'Ambrosio Christopher | Corp. VP | SELL | 543 | $142K |
| Jan 12, 26 | Kwon David | Corp VP | SELL | 806 | $213K |
| Jan 6, 26 | Kwon David | Corp VP | SELL | 900 | $234K |
| Fund | Shares Held | Position Value | Action (latest Q) |
|---|---|---|---|
| Citadel Ken Griffin | 1.57M | $403.02M | NEW |
| D.E. Shaw David Shaw | 109K | $28.08M | NEW |
| Renaissance Technologies Jim Simons (founder) | 58K | $14.87M | NEW |
| Point72 Steve Cohen | 26K | $6.64M | NEW |
| Marshall Wace | 17K | $4.46M | NEW |
Automatic Data Processing Inc. is a global technology company specializing in cloud-based human capital management solutions. It provides comprehensive HR, payroll, talent management, time tracking, benefits administration, compliance, and payroll processing services to businesses of all sizes, from small enterprises to large global organizations. The company operates primarily through two key segments: Employer Services, which delivers strategic cloud platforms and HR outsourcing solutions, and Professional Employer Organization Services, offering co-employment arrangements that help clients manage HR responsibilities. Automatic Data Processing Inc. supports more than one million clients across over 140 countries with AI-driven insights and innovative tools designed to streamline workforce management and enhance business efficiency. Founded in 1949 and headquartered in Roseland, New Jersey, it plays a vital role in the human capital management sector by enabling employers to focus on core operations while outsourcing complex administrative tasks.
Earnings calendar coming soon. Subscribe to get notified when ADP reports next.
Get earnings alerts →