Company Reports

ADP's revenue was up 7% year over year to $5.5 billion and non-GAAP operating margin was up 140 basis points to 25.1% in the fiscal fourth quarter. Management expects fiscal 2027 revenue growth of about 6% and non-GAAP operating margin of about 27.6%.

ADP is a leading global payroll and human capital management provider. Payroll providers often focus on either the enterprise or down-market segments; ADP is one of the few with comprehensive solution suites equipped to serve clients of all sizes. Its breadth of solutions, combined with decades of navigating regulatory changes and the high costs of switching payroll providers, has enabled ADP to build a strong enterprise foothold, supporting healthy cash flows even through macroeconomic downturns. The firm operates two segments, employer services and professional employer organization.

ADP is a leading global payroll and human capital management provider. Payroll providers often focus on either the enterprise or down-market segments, and ADP is one of the few with comprehensive solution suites equipped to serve clients of all sizes. The firm's breadth of solutions, combined with decades of navigating regulatory changes and the high costs of switching payroll providers, has enabled ADP to build a strong enterprise foothold, supporting healthy cash flows even through macroeconomic downturns. The firm operates two segments, employer services and professional employer organization, or PEO.

We are transferring coverage of payroll and human capital management, or HCM, providers ADP, Paychex, and Paycom, and relaunching coverage of Paylocity. Their solutions span payroll, talent management, and workforce analytics, with ADP and Paychex also offering outsourcing and retirement services.

ADP is a leading global payroll and human capital management provider. Payroll providers often focus on either the enterprise or down-market segments, and ADP is one of the few with comprehensive solution suites equipped to serve clients of all sizes. The firm's breadth of solutions, combined with decades of navigating regulatory changes and the high costs of switching payroll providers, has enabled ADP to build a strong enterprise foothold, supporting healthy cash flows even through macroeconomic downturns. The firm operates two segments, employer services and professional employer organization, or PEO.

ADP reported third-quarter revenue up 7% year over year (6% organic constant currency) to $5.9 billion, while adjusted EBIT margin expanded 80 basis points to 30.2%, a strong result amidst AI disruption fears.

ADP is a global leader in human capital management and payroll software and should remain so for the foreseeable future, even as it battles AI threats. It services customers of all sizes, in every industry, across 140 countries. The company has two segments: employer services and professional employer organization services.

We conducted a comprehensive review of Morningstar Economic Moat Ratings across our global technology and technology-adjacent coverage universe of more than 130 companies. In doing so, we updated our moat ratings and fair value estimates for our payroll sector coverage.

ADP is a global leader in human capital management and payroll software and should remain so for the foreseeable future. It services customers of all sizes, in every industry, across 140 countries. The company has two segments: employer services and professional employer organization services.

ADP reported second-quarter revenue up 6% year over year to $5.4 billion, alongside a non-GAAP operating margin of 26.0%, up 80 basis points year over year. Management raised its fiscal 2026 guidance, citing higher-than-expected interest income and solid overall bookings momentum.

ADP is a global leader in human capital management and payroll software and should remain so for the foreseeable future. It services customers of all sizes, in every industry, across 140 countries. The company has two segments: employer services and professional employer organization services.

ADP is a global leader in human capital management and payroll software and should remain so for the foreseeable future. It services customers of all sizes, in every industry, across 140 countries. The company has two segments: employer services and professional employer organization services.

ADP reported solid first-quarter results. Sales increased 7% year over year to nearly $5.2 billion while non-GAAP operating margin remained flat at 25.5%. ADP's first-quarter performance puts the company on track to achieve previously outlined full-year guidance for growth and profitability.

ADP is a global leader in human capital management and payroll software and should remain so for the foreseeable future. It services customers of all sizes, in every industry, across 140 countries. The company has two segments: employer services and professional employer organization services.

During the fourth quarter of fiscal 2025, ADP generated 7.5% revenue growth year over year and 40 basis points of improvement in adjusted operating margins. The strong finish to 2025 helped ADP generate results in line with full-year guidance for both revenue and profitability.

ADP is a global leader in human capital management and payroll software and should remain so for the foreseeable future. It services customers of all sizes, in every industry, across 140 countries. The company has two segments: employer services and professional employer organization services.

ADP is a global leader in human capital management and payroll software and should remain so for the foreseeable future. It services customers of all sizes, in every industry, across 140 countries. The company has two segments: employer services and professional employer organization services.

ADP provided a holistic update on the state of the business during their June 12 investor day. Management provided updated medium-term guidance surrounding growth and profitability. We now believe our prior expectations for long-term growth were too conservative and thus increase our fair value estimate for wide-moat ADP to $305 from $294, based on higher growth assumptions in both core payroll and PEO. We currently see shares as fairly valued.

ADP is a global leader in human capital management and payroll software and should remain so for the foreseeable future. It services customers of all sizes, in every industry, across 140 countries. The company has two segments: employer services and professional employer organization services.

On a day defined by disappointing GDP and jobs numbers, wide-moat ADP's impressive third-quarter results released April 30, 2025, have gone largely unnoticed. The company achieved sales growth and margins above consensus expectations as client funds grew faster than anticipated, resulting in higher levels of interest income. Additionally, the company's Professional Employer Organization, or PEO, continues to benefit from secular tailwinds resulting in high-single-digit year-over-year growth. Despite some of the macroeconomic uncertainty, we are slightly increasing our sales and margin forecasts and raising our fair value estimate to $294 per share from $290 per share.