ADP Reports 7% Revenue Growth in Nine Months

By Bobby Samwell • Thursday, May 01 15:22 • Permanent Link

Automatic Data Processing, Inc. (ADP) has reported its financial results for the nine months ended March 31, 2025, showing significant growth and positive performance across various key metrics.

Revenue: ADP's total revenues for the nine months ended March 31, 2025, increased by 7% to $15,434.1 million, with 7% organic constant currency growth. This growth was driven by new business from New Business Bookings, strong client retention, an increase in zero-margin benefits pass-throughs, pricing increases, and interest on funds held for clients. The company also closed the WorkForce Software acquisition in October, which contributed to revenue growth.

Earnings: Earnings before income taxes (EBIT) for the nine months ended March 31, 2025, increased by 9% to $4,119.4 million, with an EBIT margin expansion of 50 basis points. Adjusted EBIT also grew by 9% to $4,134.2 million, with an adjusted EBIT margin expansion of 60 basis points.

Diluted Earnings Per Share (EPS): Diluted and adjusted diluted EPS both grew by 10% and 9%, respectively, to $7.75.

Cash Returned to Shareholders: ADP returned $2.8 billion to shareholders through dividends and share repurchases, including increasing its dividend for the 50th consecutive year.

Acquisitions: ADP closed the acquisition of PEI (Procesamiento Externo de Informacion, S.C.) in Mexico in January, enhancing its global payroll capabilities. The company also made progress on integrating WorkForce Software into its global HCM ecosystem to better serve mid-sized and large, global enterprises.

Operational Metrics: ADP's pays per control metric, representing the number of employees on ADP clients' payrolls in the United States, grew by 1% for the nine months ended March 31, 2025. PEO average worksite employees also increased by 3% during the same period.

Expenses: Total expenses for the nine months ended March 31, 2025, increased by 7%, primarily driven by operating expenses, research and development, selling, general and administrative expenses, and interest expense.

Financial Condition: ADP highlighted its strong business model, significant cash flows with low capital intensity, and solid financial condition, positioning the company to support its clients and associates.

Today the company's shares have moved -0.5% to a price of $299.12. For the full picture, make sure to review Automatic Data Processing's 10-Q report.

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