Automatic Data Processing

ADP reported record 92.1% client retention, 7% Employer Services revenue growth and a 130-basis-point margin expansion in Q3 FY26, underlining the stickiness of its payroll and compliance franchise. The company earns substantial high-margin float income—guiding FY26 client fund interest to $1.34–$1.35 billion—while returning capital via share buybacks and a 50-plus year dividend growth streak. Management raised FY26 adjusted EPS growth guidance to 10–11%, and ADP’s low-beta profile and recurring fees support resilient long-term compounding despite risks if float income and employment soften. » More on finance.yahoo.com

Mairs & Power highlighted Automatic Data Processing in its Q1 2026 investor letter, noting that fears about AI affecting software pricing and jobs pressured the stock but the firm reassessed and remains confident in ADP's position. The article notes ADP shares traded around $220 on June 1, 2026 with a market cap near $91.7 billion, and mentions Morgan Stanley has revised ADP's target lower after an earnings re-rating. Hedge fund holdings in ADP edged down slightly to 67 portfolios at the end of Q1 2026. » More on finance.yahoo.com

ADP reports an increase in private‑sector payrolls of 109,000 in April, below the 120,000 expected. The March figure was slightly revised to 61,000. ADP chief economist Nela Richardson points to strong hiring at small and large firms, while the mid‑sized segment shows weakness. » More on de.investing.com