Automatic Data Processing (ADP) is expected to achieve robust growth, driven by its enhanced digital platform, expanding international presence, rising new bookings, and record-level customer retention,

RBC Capital Markets said Wednesday in a report.

An investor day on June 12 is expected to highlight its product portfolio and innovation plans, including a new conversational AI tool aimed at boosting productivity in human resources, RBC said.

The company may also update its mid-term financial targets, which may be slightly lower than 2021 estimates, mainly due to reduced growth projections in its professional employer organization segment and narrower margin expansion, RBC said.

Revenue growth may be 6% to 8% with adjusted earnings per share growth of 9% to 11%, down from 11% to 13%, RBC said. ADP plans to continue share buybacks and maintain a dividend yield around 2%, the report said.

For fiscal 2026, ADP is expected to guide revenue growth of 5% to 6%, adjusted earnings before interest and taxes margin expansion of 40 to 60 basis points, and EPS growth of 8% to 10%, the report said. RBC estimates revenue of $21.7 billion, slightly above consensus, and EPS around $10.95.

RBC has a sector perform rating on ADP stock with a price target of $315.

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