Automatic Data Processing, Inc. (NASDAQ: ADP) has released its financial results for the fourth quarter and fiscal year 2025, showcasing substantial growth and surpassing analyst expectations.
Q4 FY’25 Results
In the fourth quarter of fiscal year 2025, ADP's revenue increased by 8%, reaching $5.1 billion, exceeding the expected revenue of $5.05 billion. Net earnings for the quarter rose by 10% to $911 million, while adjusted net earnings were up by 8% to $923 million. This performance was reflected in the company's diluted earnings per share (EPS), which increased by 10% to $2.23, above the anticipated EPS of $2.22. The Employer Services segment saw an 8% rise in revenues, while the PEO Services segment experienced a 7% growth.
FY’26 Outlook
Looking ahead to fiscal year 2026, ADP has set robust growth targets, projecting a revenue increase of 5% to 6%. The company anticipates an adjusted EBIT margin expansion of 50 to 70 basis points and an adjusted diluted EPS growth of 8% to 10%. These projections reflect ADP's commitment to strong financial performance. The Employer Services segment is expected to see revenue growth of 5% to 6%, while PEO Services is forecasted to achieve revenue growth between 5% to 7%.
Conclusions
ADP's President and CEO Maria Black expressed satisfaction with the fiscal year’s conclusion, emphasizing strong revenue and earnings growth. The company remains focused on innovation and client satisfaction, positioning it well for continued success in the forthcoming fiscal year.
ADP has closed the fiscal year with strong performance and set an optimistic outlook, confirming its ability to grow in a competitive environment.
