ADP stock extends its rally as margins and targets improve
Published on 08/22/2026 at 13:17 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Automatic Data Processing, Inc. (ADP) stock is trading above $279 after fiscal Q4 2026 earnings showed $2.64 in adjusted EPS and $5.47 billion in revenue, with the shares also changing hands around $280.81 on August 22, 2026. The latest trading snapshot shows a 52-week range of $188.16 to $308.89 and a market value of $111.55 billion.
The company reported those results on July 29, 2026, and the comparison with the prior-year quarter is clear: revenue rose 6.8% and adjusted net earnings increased 14% to $1.05 billion, while adjusted EBIT climbed 13% to $1.37 billion. Margin also improved, with adjusted EBIT margin expanding 140 basis points to 25.1%.
Why the shares hold up
ADP's latest quarter matters because the company turned mid-single-digit revenue growth into faster profit growth, and that mix has kept the stock near the upper end of its recent range. The shares were cited at $269.31 on August 18, 2026, then around $279.21 on August 21, 2026, showing a clear step higher after the earnings release.
The analyst backdrop has also stayed constructive. A consensus view described as Hold came with an average target of $273.50, while recent market commentary pointed to a higher fair value estimate of $286.67 and a price target range from $224.53 to $326.27.
What the numbers say
The quarter delivered a concrete beat on both profit and sales: EPS of $2.64 topped the $2.59 estimate, and revenue of $5.47 billion beat the $5.44 billion consensus. That 6.8% year-over-year revenue gain and 14% rise in adjusted net earnings show that ADP is still gaining operating leverage even at a large scale.
Capital return remains part of the story as well. The quarterly dividend was raised to $1.70 per share, and the annual dividend payout reached $2.6 billion in fiscal 2026, up from $1.6 billion in fiscal 2023.
Product and model
ADP's payroll and human capital management platform spans payroll processing, tax and compliance services, benefits administration, time tracking, talent management, and HR outsourcing. That broad mix helps explain why recurring revenue and retention remain central to the stock's valuation.
Market level
As of August 22, 2026, ADP stock was quoted at $280.81 on NASDAQ, with a beta of 0.81 and a 50-day moving average of $249.66. The current price also sits close to the recent consensus target of $273.50 and below the 52-week high of $308.89.
Fact box
Company: Automatic Data Processing, Inc.
ISIN: US0530151036
Ticker: ADP
Exchange: NASDAQ Global Select
Price (as of August 22, 2026): $280.81 USD
Market cap: $111.55 billion
Sector / Industry: Technology / Software - Application
Index membership: Nasdaq-100
