ADP's $330M Volume Dives 28% to 298th Rank Amid Earnings Beat and Revised Guidance

On August 29, 2025, Automatic Data Processing (ADP) reported a trading volume of $0.33 billion, a 27.78% decline from the previous day, ranking it 298th in market activity. The stock closed with a marginal decline of 0.02%, underperforming broader indices. Recent earnings data revealed strong Q3 fiscal 2025 results, with earnings per share of $2.26 exceeding estimates by 1.8% and revenue of $5.1 billion surpassing forecasts by 1.5%. Year-over-year growth in adjusted EBIT rose 9% to $5.3 billion, while the EBIT margin expanded 50 basis points to 26%.

Segmental performance highlighted mixed results. Employer Services revenue grew 8% to $3.5 billion but fell short of estimates. PEO Services revenue increased 9% to $1.2 billion, yet interest on client funds and average worksite employees lagged expectations. For fiscal 2025, ADP revised revenue growth guidance downward to 5-6%, with adjusted EPS growth projected at 8-10%. The company also raised its adjusted EBIT margin outlook by 10-20 basis points, reflecting cost discipline and operational efficiency.

Analyst sentiment remains cautious. ADP’s VGM Score of D indicates weak value and momentum metrics, with downward revisions in earnings estimates. Despite a Zacks Rank of #3 (Hold), the stock faces pressure from revised guidance and a challenging macroeconomic environment. The recent 1.7% decline since the last earnings report underscores market skepticism about sustaining momentum ahead of the next earnings cycle.

Backtest results: The stock’s 52-week range of $267.79–$329.93 shows resilience, but short-term volatility persists. A 2.03% dividend yield and 30.5 P/E ratio highlight its defensive appeal, though earnings growth must accelerate to justify valuations.