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ADP Set for Q3 Earnings Report Amid Positive Growth Outlook

Automatic Data Processing (ADP) is poised to announce its Q3 earnings with projected growth in EPS and positive revenue expectations. Analysts cautiously maintain a 'Hold' rating, as the stock has outperformed the S&P 500, but is still below average price targets.

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AI Rating:   7

Investors Prepare for ADP's Earnings Announcement - Automatic Data Processing, Inc. (ADP), a leader in cloud-based Human Capital Management solutions, is scheduled to announce its fiscal Q3 2025 earnings. With a projected EPS of $2.96, marking a 2.8% year-over-year increase, ADP has consistently exceeded earnings expectations in the past four quarters, creating positive investor sentiment.

For fiscal 2025, analysts forecast an EPS of $9.94, showing a robust growth of 8.3% from the previous year. This anticipated EPS growth, alongside a projected increase to $10.85 for fiscal 2026 (9.2% growth), reflects ADP’s strong operational performance and effective market position. Such EPS forecasts indicate a stable financial trajectory and attract long-term investment interest.

Furthermore, ADP's notable recovery following better-than-expected fiscal Q2 2025 earnings, which featured an EPS of $2.35 and $5.1 billion in revenue, suggests solid operational growth. An increase in interest revenue, buoyed by AI product developments, has further solidified confidence in ADP. The reaffirmed guidance of 6% to 7% revenue growth and 7% to 9% adjusted EPS growth for the year indicates an optimistic revenue stream amid evolving market demands.

However, despite these positive indicators, analysts are maintaining a cautious approach with an overall 'Hold' rating for ADP. This stems from a mixed sentiment in the investment community, where only four out of 18 analysts recommend a 'Strong Buy,' while the majority advise caution. Currently, ADP is trading below the average analyst price target of $311.33, which may temper immediate bullish activity.

Stocks:  ADP