Automatic Data Processing (ADP) ADP Q4 Financial Results Summary

# ADP (ADP) Q4 2025 Financial Results Summary

**Release Date:** July 30, 2025

ADP (Nasdaq: ADP), a global leader in HR and payroll solutions, reported its fourth quarter and fiscal 2025 financial results on July 30, 2025. The following summary provides an overview of key metrics and insights from the report.

### Consolidated Results Overview
– **Fourth Quarter Revenue:**
– Increased by **8%** to **$5.1 billion**, and **6%** on an organic constant currency basis compared to Q4 2024.
– **Net Earnings:**
– Increased by **10%** to **$911 million**.
– Adjusted net earnings rose by **8%** to **$923 million**.
– **Adjusted EBIT:**
– Increased by **9%** to **$1.2 billion**, resulting in an adjusted EBIT margin of **23.7%**, a **40 basis points** increase from Q4 2024.
– **Effective Tax Rate:**
– Stood at **23.5%** for the quarter.
– **Diluted EPS:**
– Increased by **10%** to **$2.23**; adjusted diluted EPS increased by **8%** to **$2.26**.

### Full Year Results
– **Revenue:**
– Up by **7%** to **$20.6 billion** (7% organic constant currency).
– **Net Earnings:**
– Increased by **9%** to **$4.1 billion**; adjusted net earnings also increased by **8%** to **$4.1 billion**.
– **Adjusted EBIT:**
– Increased by **9%** to **$5.3 billion**, leading to an adjusted EBIT margin expansion of **50 basis points** to **26.0%**.
– **Effective Tax Rate:**
– Full year effective tax rate was **23.2%**.
– **Diluted EPS:**
– Increased by **10%** to **$9.98**; adjusted diluted EPS rose by **9%** to **$10.01**.

### Segment Performance
#### Employer Services
– **Q4 Revenue:**
– Increased by **8%** on a reported basis, and **6%** on an organic constant currency basis.
– **Full Year Revenue:**
– Increased by **7%** (reported) and **6%** (organic constant currency).
– **New Business Bookings:**
– Increased by **3%** to **$2.1 billion** for the full year.
– **Client Revenue Retention:**
– Improved to **92.1%** from **92.0%**.

#### PEO Services
– **Q4 Revenue:**
– Increased by **7%**.
– **Full Year Revenue:**
– Increased by **7%**; excluding zero-margin benefits, it grew by **5%**.
– **Average Worksite Employees:**
– Rose by **3%** to approximately **761,000** for the fourth quarter and **748,000** for the full year.

### Interest on Funds Held for Clients
– **Q4 Interest Revenue:**
– Increased by **11%** to **$308 million**.
– **Full Year Interest Revenue:**
– Increased by **16%** to **$1.2 billion**.
– **Average Client Funds Balance:**
– Grew by **6%** to **$38.1 billion** for the fourth quarter; full year increased by **6%** to **$37.6 billion**.
– **Yield on Client Funds Portfolio:**
– Increased by **20 basis points** to **3.2%** for the fourth quarter; full year increased by **30 basis points** to **3.2%**.

### Fiscal 2026 Outlook
– **Consolidated Revenue Growth:**
– Expected to be between **5% to 6%**.
– **Adjusted EBIT Margin Expansion:**
– Anticipated to expand by **50 to 70 basis points**.
– **Diluted EPS Growth:**
– Expected growth of **8% to 10%**.

### Shareholder Returns
– The board declared a quarterly dividend of **$0.65** per share.

### Conclusion
ADP’s fiscal 2025 results demonstrated solid growth across various financial metrics, setting a positive outlook for fiscal 2026. By maintaining a focus on client satisfaction and revenue growth, ADP aims to continue delivering value to its shareholders in the upcoming year.

# Income Statement
**Statements of Consolidated Earnings (In millions, except per share amounts)**

—

# Balance Sheet
**Consolidated Balance Sheets (In millions, except per share amounts)**