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Automatic Data Processing Poised for Modest Beat in Fiscal Q3, RBC Says

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Automatic Data Processing (ADP) is expected to post a modest beat, with the company reiterating its fiscal 2026 guidance, when it reports its fiscal Q3 results on Wednesday, RBC Capital Markets said in a research note.

RBC is modeling fiscal Q3 total revenue growth of 5.6% year-on-year to $5.86 billion, compared with consensus of 5.4% growth to $5.85 billion. Quarterly earnings per share are expected to be $3.36, versus the consensus estimate of $3.29, RBC said in the preview emailed on Tuesday.

Automatic Data Processing should continue to see tailwinds from broad-based strength in Employer Service bookings across international, US enterprise, and compliance businesses, RBC said.

Pays per Control is expected to remain stable near 0% to 1%, slightly beating the flattish outlook, while retention should decline about 20 basis points, consistent with the mid-point of the company's fiscal 2026 guidance, according to RBC.

RBC maintained its sector perform rating with a price target of $290 on Automatic Data Processing.

Price: $200.12, Change: $+2.89, Percent Change: +1.47%

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