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."