ADP annual earnings and revenue rise, sees growth ahead

30th July 2025 16:21

(Alliance News) - Automatic Data Processing Inc on Wednesday reported higher revenue and earnings for its fourth quarter and full financial year, with growth across its Employer Services and Professional Employer Organisation segments, and ADP said it expects continued progress in financial 2026.

For the year ended June 30, the Roseland, New Jersey-based human capital management solutions firm said revenue rose 7% to USD20.56 billion from USD19.20 billion a year prior.

Net earnings increased 8.7% to USD4.08 billion from USD3.75 billion, with diluted earnings per share rising 9.7% to USD9.98 from USD9.10

Fourth-quarter revenue climbed to USD5.13 billion from USD4.77 billion, while net earnings rose to USD910.6 million from USD829.3 million. Adjusted diluted earnings per share rose to USD2.26 from USD2.09.

Chief Executive Officer Maria Black said ADP finished financial 2025 with "strong revenue and earnings growth", citing robust performance in its core segments and record-high client satisfaction levels.

ADP forecasts financial 2026 revenue growth of 5% to 6%, adjusted earnings before interest and tax margin expansion of 50 to 70 basis points, and adjusted diluted EPS growth of 8% to 10%.

Employer Services full-year revenue grew 7% to USD13.88 billion, while PEO Services revenue rose 7% to USD6.69 billion. Interest on client funds rose 16% to USD1.19 billion as yields improved and balances increased.

Average worksite employees paid by PEO Services rose 3% to 748,000 for the year. Client revenue retention for Employer Services held firm at 92%.

Chief Financial Officer Peter Hadley said the results reflected "solid execution" and a "resilient business model", adding that ADP remains focused on "margin expansion and healthy shareholder returns" in the new financial year.

Shares in ADP were up 2.2% to USD315.43 in New York on Wednesday morning.

By Eva Castanedo, Alliance News reporter

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