Automatic Data Processing (ADP) released Q2 2026 results that surpassed analyst expectations for revenue and adjusted EPS. Despite the positive earnings and a new US$6 billion share buyback announcement, the stock has seen a decline in price over the last 30 days and year, influenced by insider selling. The article suggests ADP may be undervalued, with a fair value estimated at $387.77 per share compared to its last close of $212.11, but highlights potential risks from margin pressure due to AI and tech spending, and competition.
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A Look At Automatic Data Processing’s Valuation After Q2 Earnings Beat And US$6b Buyback Announcement
Automatic Data Processing (ADP) released Q2 2026 results that surpassed analyst expectations for revenue and adjusted EPS. Despite the positive earnings and a new US$6 billion share buyback announcement, the stock has seen a decline in price over the last 30 days and year, influenced by insider selling. The article suggests ADP may be undervalued, with a fair value estimated at $387.77 per share compared to its last close of $212.11, but highlights potential risks from margin pressure due to AI and tech spending, and competition.