ADP Q3 Fiscal 2025 Summary

ADP reported strong third quarter results for fiscal 2025, with revenues rising 6% year-over-year to $5.6 billion and adjusted EBIT growing 6% to $1.63 billion. Net earnings reached $1.25 billion, also up 5%, while adjusted diluted EPS rose 6% to $3.06. Segment highlights include 5% revenue growth for Employer Services and 7% growth for PEO Services. Client funds interest income increased 11% to $355 million, benefiting from higher balances and yields. ADP raised its fiscal 2025 guidance, now expecting adjusted EPS growth of 8–9% and adjusted EBIT margin expansion of 40–50 basis points, citing a strong business model, continued client growth, and solid investment returns.

ADP Announces CFO Transition

ADP has appointed Peter Hadley as Chief Financial Officer, effective July 1, 2025. He will succeed Don McGuire, who will remain available through September 30, 2025, to ensure a smooth transition. Hadley currently serves as Corporate Vice President and Treasurer and has been with ADP since 2002, holding key finance and operational leadership roles globally, including President of ADP Asia Pacific and CFO for Global Enterprise Solutions. CEO Maria Black praised Hadley's deep financial expertise and leadership, highlighting his contributions to ADP’s growth. Hadley expressed his commitment to driving long-term growth and shareholder value. McGuire was recognized for building a strong finance organization and helping shape ADP into a global HCM leader.

ADP Reports Q3 Fiscal 2025 Results: Revenue, Profit Rise; Full-Year Guidance Raised

ADP (Nasdaq: ADP) announced its third quarter fiscal 2025 financial results, showing solid growth in revenue and earnings, which led to an upward revision in its full-year outlook.

Key Q3 Highlights (compared to Q3 2024):
- Revenue increased 6% to $5.6 billion; organic constant currency growth was also 6%.
- Net earnings rose 5% to $1.25 billion.
- Adjusted EBIT increased 6% to $1.63 billion; adjusted EBIT margin improved by 10 basis points to 29.3%.
- Diluted earnings per share (EPS) rose 6% to $3.06; adjusted diluted EPS also increased 6%.
- Interest on client funds rose 11% to $355 million, driven by a 7% increase in average balances and a yield increase to 3.2%.

Segment performance:
- Employer Services revenue grew 5%; U.S. pays per control increased 1%; segment margin improved by 20 basis points.
- PEO Services revenue grew 7%; excluding zero-margin pass-throughs, revenue rose 8%; average paid worksite employees increased 2% to approximately 748,000.

Revised Fiscal 2025 Outlook:
- Revenue growth remains at 6% to 7%.
- Adjusted EBIT margin expansion raised to 40–50 basis points (from 30–50 bps previously).
- Adjusted diluted EPS growth now expected at 8% to 9% (up from prior 7% to 9%).
- Client funds interest income is forecasted between $1.160 and $1.170 billion.

Comments from management:
CEO Maria Black highlighted consistent execution and record client satisfaction. CFO Don McGuire noted strong revenue and earnings results and reaffirmed ADP's focus on long-term growth and investment.

The board of directors of Automatic Data Processing, Inc. (Nasdaq: ADP) has declared a regular quarterly dividend of $1.54 per share payable July 1, 2025 to shareholders of record on June 13, 2025.

ADP (Nasdaq: ADP) is scheduled to release its financial results for the third fiscal quarter ending March 31, 2025 before the opening of the Nasdaq on Wednesday, April 30, 2025.

ADP will also be hosting a conference call at 8:30 a.m. ET on April 30, 2025 to discuss these results. Maria Black, President & Chief Executive Officer, Don McGuire, Chief Financial Officer and Matthew Keating, Vice President of Investor Relations, will be participating on the call.

ADP (Nasdaq: ADP), a leading global provider of Human Capital Management (HCM) solutions, is scheduled to release its financial results for the third fiscal quarter ending March 31, 2025 before the opening of the Nasdaq on Wednesday, April 30, 2025.

ADP will also be hosting a conference call at 8:30 a.m. ET on April 30, 2025 to discuss these results. Maria Black, President & Chief Executive Officer, Don McGuire, Chief Financial Officer and Matthew Keating, Vice President of Investor Relations, will be participating on the call.

ADP (Nasdaq: ADP) today announced its second quarter fiscal 2025 financial results and updated its fiscal 2025 outlook.

Second Quarter Fiscal 2025 Consolidated Results

Compared to last year’s second quarter, revenues increased 8% to $5.0 billion and 8% on an organic constant currency basis. Net earnings increased 10% to $963 million, and adjusted net earnings increased 9% to $963 million. Adjusted EBIT increased 11% to $1.3 billion, representing an adjusted EBIT margin increase of 60 basis points in the quarter to 25.2%. ADP’s effective tax rate for the quarter was 23.6% on both a reported basis and an adjusted basis. Diluted EPS increased 10% to $2.35, and adjusted diluted EPS increased 10% to $2.35.
“Our momentum continued into the second quarter with strong revenue and earnings growth," said Maria Black, President and Chief Executive Officer of ADP. “We achieved a major milestone in November, when our Board of Directors approved an increase to our quarterly dividend, marking the 50th consecutive year in which we raised our dividend. With a healthy HCM demand backdrop and all-time record client satisfaction, we are focused on continuing to deliver for our shareholders in the second half of our fiscal year."
"Our second quarter revenue growth and margin performance exceeded our expectations, as we benefited from solid new business bookings growth and higher client funds interest revenue," said Don McGuire, Chief Financial Officer, ADP. "We look forward to continuing to enhance our profitability as we invest in our business to drive sustainable, long-term growth."

ADP to Announce Second Quarter Fiscal 2025 Financial Results on January 29, 2025

Automatic Data Processing, Inc. (Nasdaq: ADP) has announced a regular quarterly dividend of $1.54 per share. The dividend will be payable on April 1, 2025, to shareholders of record as of March 14, 2025.

ADP continues to focus on providing innovative HR, talent, time management, benefits, and payroll solutions, emphasizing exceptional experiences and data-driven designs. For more details, visit ADP.com.