What smart money is saying about Automatic Data Processing
3 funds in our archive have pitched Automatic Data Processing — most recently Clearbridge Investments Dividend Strategy in September 2026.
Automatic Data Processing, Inc. (ADP) is a global provider of cloud-based solutions designed for human capital management (HCM). The company organizes its operations into two primary segments: Employer Services and Professional Employer Organization (PEO). Through its Employer Services division, ADP delivers strategic, cloud-powered platforms and comprehensive human resources (HR) outsourcing. This encompasses a wide array of services such as payroll processing, benefits administration, talent acquisition and management, general HR and workforce management, insurance, retirement planning, and regulatory compliance, often integrated into holistic HCM solutions. Conversely, the Professional Employer Organization (PEO) segment specializes in offering HR outsourcing to small and mid-sized businesses, leveraging a co-employment framework. This segment's offerings span robust benefits packages, regulatory protection and compliance, talent engagement strategies, specialized HR expertise, all-encompassing outsourcing, and even recruitment process outsourcing. Established in 1949, ADP maintains its corporate headquarters in Roseland, New Jersey.
Get an email when a fund buys, sells or pitches it
Position history
Between Q2 2025 and Q3 2026, 13 fund letters reported a position in Automatic Data Processing — 4 opened or added to the position, 1 trimmed or exited.
| Quarter | Letters | Bought | Sold | Theses |
|---|---|---|---|---|
| Q3 2026 | 7 | 1 | 1 | 1 |
| Q2 2026 | 3 | 3 | 0 | 2 |
| Q1 2026 | 2 | 0 | 0 | 0 |
| Q2 2025 | 1 | 0 | 0 | 0 |
Fund activity · 13 positions · 5 moves
- September 2026
“Automatic Data Processing (ADP) ADP is one of the leading providers of payroll and human resources software.”
Automatic Data Processing - September 2026
“Performance Overview Relative performance in the quarter showed a mix of positives and negatives in most sectors, with few major factors dominating. Our IT underweight detracted, although our positioning in the sector contributed positively: not owning the high-beta cyclical picks and shovels beneficiaries of the AI infrastructure buildout helped as these stocks sold off in the third quarter. However, our measured and underweight positions in Apple, Nvidia and Microsoft detracted. Our energy overweight contributed, although our positioning detracted as Williams sold off modestly as investors impatiently await additional data center projects; ExxonMobil, on the other hand, rose as higher oil prices lifted producer revenue and earnings expectations. In health care, Becton Dickinson rose as the sector rebounded from depressed valuations, helped by a rotation away from crowded AI positions. At the same time, CVS Health weakened despite strong results and increased 2026 guidance as management warned that pressure in its 340B business would persist into 2027. In industrials, Honeywell Aerospace’s first results as an independent business reflected lower adjusted earnings and separation-related costs, while management reduced its full-year sales and adjusted earnings outlook before interest and taxes amid continuing supply- chain constraints; we believe these will be short-lived headwinds. Automatic Data Processing (ADP), meanwhile, continued to execute well and was a top contributor: earlier in the year we bought the dip in ADP as we believed fears of AI disintermediation were overblown.”
Automatic Data Processing - September 2026
“Indus tria ls 15.7 Automatic Data Processing, Inc. United States 1.5 Professional Services”
Automatic Data Processing - September 2026
“Automatic Data Processing, Inc. United States 1.7 Professional Services”
Automatic Data Processing - September 2026
“Conversely, Consumer Staples and Industrials holdings such as Unilever and Automatic Data Processing beneted portfolio performance.”
Automatic Data Processing - September 2026
“We also eliminated eight positions during the third quarter. Genuine Parts was eliminated after a period of outperformance given the quality of its automotive business and the impending business separation. Charles Schwab was eliminated after a period of outperformance as fears of AI disintermediation dissipated. Mobility Global was spun out of S&P Global, and we received a small position (1bp) as a result of our ownership in SPGI. After reviewing the company, we decided not to establish a full position and eliminated the small position. Automatic Data Processing was eliminated given its uncertain long-term competitive position after a period of outperformance.”
Automatic Data Processing - September 2026
“Automatic Data Processing (ADP) ADP is one of the leading providers of payroll and human resources software.”
Automatic Data Processing - June 2026
“We used the proceeds from these sales and scale backs to build positions in Automatic Data Processing, Comcast Corp, Constellation Brands, Home Depot, Medtronic, NextEra Energy (repurchased later in the quarter at lower levels), PepsiCo, Inc, Procter & Gamble Co., and Tyson Foods.”
Automatic Data Processing - New positionClearBridge Investments Dividend StrategyJune 2026
“With investors myopically focused on AI, we are finding terrific opportunities in other areas of the market. Indeed, our outlook for the portfolio is the most constructive it has been in years. We recently built significant positions in ADP, Blackstone, Marsh & McLennan and Otis and added materially to positions in Apollo, Haleon and Unilever.”
Automatic Data Processing - New positionCooke & Bieler All Cap Value EquityJune 2026
“Initiations Automatic Data Processing (ADP) is a $20B revenue global leader in HR software and services. It provides mission-critical payroll, human capital management, benets administration, and professional employer organization solutions to businesses of all sizes. Favorable economics are supported by competitive advantages in scale, embeddedness, and diversied revenue streams. Management has successfully reinvested in its platforms after a period of product stagnation, strengthening ADP’s position as a dominant player. While the market reacted negatively to SaaS multiple compression and fears of AI-driven white-collar displacement, we believe it underappreciates the nuanced, regulated, and deeply embedded aspects of HR work. These circumstances created an opportunity to invest in a high-single-digit compounder with durable free cash ow, disciplined capital allocation, and a strong balance sheet.”
Automatic Data Processing - March 2026
“I ndust rials 20.2 Automatic Data Processing, Inc. United States 1.3 Professional Services”
Automatic Data Processing - March 2026
“Portfolio Holdings Data as of March 31, 2026. Source: FactSet, Hardman Johnston Global Advisors LLC®. The data shown is of a representative portfolio for the Hardman Johnston Select Equity strategy and is for informational purposes only and is not indicative of future portfolio characteristics/returns. Actual results may vary for each client due to specific client guidelines and other factors. The representative portfolio was chosen as most representative of the Select Equity strategy. Future investments may or may not be profitable. C ountry We ig ht ( %) Indus try Communicat ion Serv ices 8.1 Alphabet Inc. United States 7.1 Interactive Media & Services Comcast Corp. United States 0.9 Diversified Telecommunication Services Versant Media Group, Inc. United States 0.1 Media Consumer Discret ionary 2.7 SharkNinja, Inc. United States 2.7 Household Durables Consumer St aples 0.8 Estee Lauder Companies Inc. United States 0.8 Personal Care Products Energy 1.9 Cameco Corporation Canada 1.9 Oil, Gas & Consumable Fuels Financials 9.7 Charles Schwab Corp United States 3.0 Capital Markets Marsh & McLennan Cos. Inc. United States 3.0 Insurance Mastercard Inc. United States 3.8 Financial Services H ealt h Care 17.9 AstraZeneca plc United Kingdom 3.5 Pharmaceuticals Becton, Dickinson & Co. United States 1.4 Health Care Equipment & Supplies Edwards Lifesciences Corp. United States 2.8 Health Care Equipment & Supplies Illumina, Inc. United States 2.0 Life Sciences Tools & Services IQVIA Holdings Inc. United States 1.9 Life Sciences Tools & Services Medtronic plc United States 1.7 Health Care Equipment & Supplies UnitedHealth Group Inc. United States 1.0 Health Care Providers & Services Vertex Pharmaceuticals Inc. United States 3.2 Biotechnology Waters Corporation United States 0.5 Life Sciences Tools & Services I ndust rials 23.4 Automatic Data Processing, Inc. United States 1.5 Professional Services”
Automatic Data Processing - June 2025
Listed in Madison Dividend Income Fund’s reported holdings.
Automatic Data Processing
Also mentioned · 1
These funds discuss Automatic Data Processing — as a competitor, benchmark or comparable — without disclosing a position in it.
- June 2026
“Below is an example of some of the most common names we have seen circulating on these lists:”
Automatic Data Processing
Fund coverage · 3 theses
- Clearbridge Investments Dividend StrategySeptember 2026
Automatic Data Processing is seen as a resilient business with strong client retention, pricing power and continued earnings growth despite AI-related concerns.
Read the full thesis - Andrew Hill AHIA Portfolio StrategyJune 2026
Automated Data Processing has durable payroll demand, earnings growth, a dividend, and downside protection from switching costs.
Read the full thesis - Cooke & Bieler All Cap Value EquityJune 2026
Automatic Data Processing is a dominant HR software compounder with scale, embeddedness, and durable free cash flow.
Read the full thesis
Read every full thesis on Automatic Data Processing
Unlock all 3 theses — the full reasoning behind what funds are buying, plus unlimited access to the entire archive.
View plans→