ADP AUTHORIZED TO PURCHASE $6 BILLION OF ITS COMMON STOCK
Rhea-AI Summary
Automatic Data Processing (Nasdaq: ADP) announced that its board authorized the repurchase of $6 billion of common stock on January 14, 2026.
This new authorization replaces in its entirety the prior 2022 authorization of $5 billion and follows a share base of approximately 403 million common shares outstanding as of December 31, 2025.
Positive
- $6.0 billion board-authorized share repurchase
- Authorization replaces prior $5.0 billion program (increase of $1.0 billion)
Negative
- Authorization is discretionary; no timing or purchase schedule was disclosed
- Company did not disclose the source of funds for repurchases
News Market Reaction
On the day this news was published, ADP gained 0.66%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
While ADP was down 2.18%, major software peers like ADBE (-1.34%), CDNS (-1.98%), INTU (-4.13%), and NOW (-2.02%) also declined, suggesting broader software weakness rather than an isolated move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 07 | Jobs report update | Positive | +0.1% | December 2025 private employment up 41,000 with solid wage growth. |
| Jan 05 | Earnings date set | Neutral | +1.8% | Announced Jan 28, 2026 release and call for Q2 FY26 results. |
| Dec 23 | Jobs pulse data | Neutral | -1.1% | NER Pulse showed slower but positive weekly job additions. |
| Dec 16 | Jobs rebound data | Positive | -1.1% | Preliminary NER Pulse signaled hiring rebound after prior job losses. |
| Dec 11 | Product integration | Positive | +2.1% | Integrated Thatch ICHRA platform into RUN for 900k+ small businesses. |
Recent ADP news has mostly aligned with modest stock moves, with some divergences around employment report releases.
Over the past two months, ADP’s news flow focused on employment data and product expansion. The Dec 11, 2025 Thatch integration targeting over 900,000 small businesses coincided with a 2.06% gain, while multiple ADP National Employment Report updates in Dec 2025 produced small mixed reactions around ±1%. An earnings date notice on Jan 5, 2026 saw a 1.76% rise. Today’s new $6 billion repurchase authorization adds a capital-return action on top of this steady operational and macro-data news flow.
Market Pulse Summary
This announcement highlighted a new $6 billion common stock repurchase authorization, replacing a $5 billion program, alongside about 403 million shares outstanding as of Dec 31, 2025. It adds a capital‑return element to a recent news stream focused on employment data, product integrations, and an upcoming earnings release. Investors may watch how aggressively the authorization is used and how it interacts with ADP’s operating performance and sector trends over time.
Key Terms
common stock financial
AI-generated analysis. Not financial advice.
This authorization replaces in its entirety the previous 2022 authorization to purchase
About ADP (Nasdaq: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll.
ADP, the ADP logo, and Always Designing for People are trademarks of ADP, Inc.
Copyright © 2026 ADP, Inc. All rights reserved.
ADP - Investor Relations
Matthew Keating, CFA
973.974.3037
Matthew.Keating@adp.com
ADP - Media
Media Contact:
Allyce Hackmann
201.400.4583
Allyce.Hackmann@adp.com
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SOURCE ADP - IR
FAQ
What did ADP announce on January 14, 2026 about share repurchases?
How does the new ADP $6 billion authorization compare to the 2022 authorization?
How many ADP shares were outstanding when the $6 billion buyback was authorized?
Does the ADP announcement guarantee immediate share purchases under the $6 billion authorization?
What ticker and date are associated with ADP's $6 billion repurchase authorization?
