ADP ADP is scheduled to release fourth-quarter fiscal 2026 results on July 29, before market open.
ADP has a decent earnings surprise history, surpassing the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 2%.
Automatic Data Processing, Inc. Price and EPS Surprise
Automatic Data Processing, Inc. price-eps-surprise | Automatic Data Processing, Inc. Quote
ADP’s Q4 Expectations
The Zacks Consensus Estimate for the top line is set at $5.4 billion, indicating 5.9% year-over-year growth. Top-line growth is likely to have stemmed from positive contributions across its segments, with Employer Services (ES) moving the needle with the highest revenue contributions.
The consensus estimate for the ES segment revenues is pinned at $3.7 billion. It suggests 5.8% year-over-year growth, which the company is anticipated to have achieved on the back of business bookings and strong client retention.
The Zacks Consensus Estimate for Professional Employer Organization services revenues is pegged at $1.8 billion, indicating a 5.9% year-over-year gain. Robust sales activity and client wins are expected to have been the primary growth catalysts. We are inclined to believe that growth in client gross payrolls and state unemployment revenues has contributed to revenue growth as well.
The consensus mark for Interest on Funds held for clients is at $340.6 million, suggesting a 10.7% jump from the year-ago quarter’s actual. ADP is expected to have registered growth in average client funds to fuel this growth.
The consensus estimate for earnings per share is set at $2.59, suggesting year-over-year growth of 14.6%. Controlled selling expenses that raise margins, facilitated by robust top-line growth, are likely to have supported bottom-line expansion. Moreover, continued share repurchase activities, lowering shares outstanding, are anticipated to have aided EPS.
What Our Model Says About ADP
Our model predicts an earnings beat for ADP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
ADP has an Earnings ESP of +0.16% and a Zacks Rank of 3 at present
Other Stocks to Consider
Here are a few other stocks from the broader Computer and Technology sector, which, according to our model, also have the right combination of elements to beat on earnings this season.
nVent Electric plc NVT: The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is pinned at $1.3 billion, indicating a 30.2% year-over-year jump. For earnings, the consensus mark is set at $1.16 per share, suggesting 34.9% year-over-year growth. The company beat the Zacks Consensus Estimate in the past four quarters, the average surprise being 7.3%.
NVT has an Earnings ESP of +1.94% and flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to declare second-quarter 2026 results on July 31.
Amphenol APH: The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is kept at $8.3 million, implying 46.9% year-over-year growth. For earnings, the consensus mark is pinned at $1.19 per share, suggesting a 46.9% jump from that reported in the year-ago quarter. The company beat the Zacks Consensus Estimate in the past four quarters, with an average surprise of 14.1%.
APH has an Earnings ESP of +1.12% and currently sports a Zacks Rank #1. The company is scheduled to declare second-quarter 2026 results on July 29.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report
Amphenol Corporation (APH): Free Stock Analysis Report
nVent Electric PLC (NVT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).