10 Profitable SaaS Companies for 2026

​7. Automatic Data Processing, Inc. (NASDAQ:ADP)

Number of Hedge Fund Holders: 57

​Automatic Data Processing, Inc. (NASDAQ:ADP) is one of the Profitable SaaS Companies for 2026. Wall Street has a mixed opinion on Automatic Data Processing, Inc. (NASDAQ:ADP) since the release of its fiscal Q2 2026 results on January 28.

​Recently, on February 9, David Grossman from Stifel Nicolaus reiterated a Hold rating on the stock and lowered the price target from $280 to $270. Earlier on January 28, BMO Capital also lowered the price target from $288 to $281, while maintaining a Market Perform rating on the stock.

​The cautious rating comes despite Automatic Data Processing, Inc. (NASDAQ:ADP) exceeding estimates in fiscal Q2 2026. The company posted a revenue of $5.36 billion, reflecting 6.16% year-over-year increase and ahead of expectations by $21 million. Moreover, the EPS of $2.62 also topped estimates by $0.05. Management attributed the performance to strong business bookings growth and progress on its strategic priorities.

Analysts at Stifel Nicolaus noted that the reduced price target reflects a reassessment amid AI-related factors, but they still see value in the stock. Automatic Data Processing, Inc. (NASDAQ:ADP) trades at a 17% premium to the equal-weight S&P 500. The analyst noted that this is the lowest since the financial crisis compared to its historical 50%-60% range. Stifel Nicolaus finds this a compelling risk/reward profile for the company.

​Automatic Data Processing, Inc. (NASDAQ:ADP) provides cloud-based human capital management (HCM) solutions worldwide, focusing on payroll processing, HR outsourcing, and related services.