Jefferies has downgraded Automatic Data Processing Inc (ADP) to Underperform from Hold, reflecting increased caution regarding the company's outlook. The action, effective December 15, 2025, comes as ADP's current share price stands at $265.26.
This downgrade underscores concerns about competitive pressures, market conditions, and execution risks that may affect the company's performance. Automatic Data Processing, headquartered in Roseland, New Jersey, provides business outsourcing solutions in cloud-based human capital management. With a market capitalization of $105.5 billion, ADP serves over 1.1 million clients globally, offering a range of services including payroll, benefits administration, and HR management.
As of December 1, 2025, the analyst consensus for ADP remains a Hold, with 2 Strong Buy, 4 Buy, 13 Hold, 2 Sell, and no Strong Sell ratings among 21 analysts. Upcoming earnings reports are scheduled for July 28, 2026, and April 28, 2026, with estimated EPS of $2.61 and $3.30, respectively.
Analyst ratings provide valuable perspectives based on research and financial models but should not be the sole basis for investment decisions. It is essential to consider various factors, including company fundamentals and market trends, when evaluating investment opportunities.