Automatic Data Processing (ADP) reported a 7% increase in revenues for the fiscal year 2025, reaching $20.6 billion, with net earnings rising 9% to $4.1 billion. For the fourth quarter alone, revenues grew 8% to $5.1 billion, while net earnings increased 10% to $911 million. The company also noted a 10% rise in diluted earnings per share to $2.23 for the quarter and a 10% increase to $9.98 for the full year. The adjusted EBIT margin for the year improved to 26.0%, reflecting a 50 basis point increase from the previous year.
Looking ahead, ADP has provided an outlook for fiscal 2026, projecting revenue growth of 5% to 6% and adjusted EBIT margin expansion of 50 to 70 basis points. The company anticipates adjusted diluted earnings per share growth of 8% to 10%. Additionally, new business bookings in the Employer Services segment are expected to grow by 4% to 7%. The effective tax rate is estimated to remain around 23%, and interest on client funds is projected to contribute between $1.250 to $1.270 billion.
linkJul 30, 2025 06:55:16
Automatic Data Processing, Inc. has entered into two new credit agreements totaling $7.05 billion, consisting of a $4.55 billion 364-Day Facility and a $2.5 billion Five-Year Facility. These new facilities replace previous agreements and include an option to increase the Five-Year Facility by an additional $500 million, subject to availability. The 364-Day Facility will mature on June 26, 2026, while the Five-Year Facility will mature on June 27, 2030. Both facilities include revolving credit options and customary covenants that restrict certain financial activities of the company and its subsidiaries.
The interest rates on the revolving loans will be based on a floating rate determined by various benchmarks, with commitment fees applicable on unused amounts. The company is also required to guarantee obligations of its subsidiaries that borrow under these facilities. The agreements were arranged by several leading financial institutions, including J.P. Morgan Chase Bank and Bank of America, among others. Borrowings under these new facilities may be used for general corporate purposes.
linkJun 27, 2025 16:06:39
ADP has announced a revenue of $19 billion for FY24, highlighting its position as a leading provider in the human capital management (HCM) sector. The company serves over 1.1 million clients, including more than 80% of Fortune 500 companies, and operates in over 140 countries. ADP emphasizes its commitment to innovation, particularly in integrating artificial intelligence across its product offerings to enhance client experiences and streamline operations.
The company continues to focus on expanding its global reach and improving its service offerings through strategic partnerships and acquisitions, such as the recent acquisition of WorkForce Software. ADP's diverse revenue portfolio includes significant contributions from small businesses and major accounts, with ongoing efforts to enhance client satisfaction and retention. The firm aims to address various client challenges, including demographic shifts and rising healthcare costs, while maintaining a strong market presence in the evolving HCM landscape.
linkJun 12, 2025 07:58:51
ADP announced its third quarter fiscal 2025 financial results, reporting a 6% increase in revenues to $5.6 billion compared to the same period last year. The company also reported a 5% rise in net earnings, reaching $1.2 billion, and a 6% increase in diluted earnings per share (EPS) to $3.06. Additionally, adjusted EBIT increased by 6% to $1.6 billion, contributing to an adjusted EBIT margin of 29.3%, which reflects a slight increase from the previous year. The company has raised its full-year guidance for adjusted EBIT margin and adjusted diluted EPS growth based on these results.
In terms of segment performance, Employer Services revenues grew by 5%, while PEO Services revenues increased by 7%. The average worksite employees paid by PEO Services rose to approximately 748,000. Interest on funds held for clients also showed an increase of 11%, totaling $355 million. Looking ahead, ADP forecasts a revenue growth of 6% to 7% for fiscal 2025, along with an adjusted EBIT margin expansion of 40 to 50 basis points and diluted EPS growth of 9% to 10%.
linkApr 30, 2025 06:57:16
ADP has announced the appointment of Peter Hadley as Chief Financial Officer, effective July 1, 2025. He will succeed Don McGuire, who has been CFO since 2021 and will assist in the transition until September 30, 2025. Mr. Hadley, who joined ADP in 2002, has held various leadership roles, including Treasurer and President of Asia Pacific, and brings extensive experience in finance and operations to the position.
The announcement highlights Mr. Hadley's qualifications, including his background in overseeing capital structure and global operations, as well as his prior roles at KPMG and Arthur Andersen. ADP's President and CEO, Maria Black, expressed confidence in Mr. Hadley's ability to lead the company's finance organization and support future growth. The press release also acknowledges the contributions of Don McGuire during his tenure as CFO.
linkApr 30, 2025 06:55:17
ADP announced its second quarter fiscal 2025 results, reporting an 8% increase in revenues to $5.0 billion compared to the same period last year. Net earnings rose by 10% to $963 million, with adjusted EBIT increasing 11% to $1.3 billion. The company also highlighted a 10% rise in diluted earnings per share to $2.35 and maintained its fiscal 2025 outlook for continued revenue growth and margin expansion. Additionally, the firm celebrated its 50th consecutive year of dividend increases, reflecting strong shareholder returns and client satisfaction.
On the downside, while the Employer Services segment saw an 8% revenue increase, the PEO Services segment's margin decreased by 140 basis points. Furthermore, despite overall revenue growth, there was a noted decline in client revenue retention for Employer Services, which could signal potential challenges ahead. The company also reported pre-tax charges related to transformation initiatives and workforce optimization, which may impact future profitability. Overall, while ADP's financial performance shows positive growth, there are areas of concern that warrant monitoring.
linkJan 29, 2025 06:55:24
ADP reported a 7% increase in revenues for the first quarter of fiscal 2025, reaching $4.8 billion, alongside an 11% rise in net earnings to $956 million. The company's adjusted EBIT also grew by 13%, and the adjusted EBIT margin improved to 25.5%. Additionally, ADP acquired WorkForce Software for approximately $1.2 billion, which is expected to enhance its workforce management solutions. The company expressed optimism about its financial performance and strategic initiatives moving forward.
On the downside, while Employer Services and PEO Services revenue both grew by 7%, the PEO Services segment margin decreased by 80 basis points. Furthermore, there was a slight decline in client revenue retention, indicating potential challenges in maintaining existing client relationships. ADP's effective tax rate remained steady at 22.6%, and the company also noted a significant decrease in cash and cash equivalents during the quarter, which may raise concerns about liquidity.
linkOct 30, 2024 06:55:33
ADP's fiscal 2024 results show a 7% revenue increase to $19.2 billion, with net earnings rising 10% to $3.8 billion. The company also reported strong new business bookings and improved client satisfaction. For fiscal 2025, ADP anticipates continued revenue growth of 5% to 6%, alongside margin expansion and EPS growth. However, client revenue retention slightly decreased, raising some concerns.
linkJul 31, 2024 06:55:18
Automatic Data Processing, Inc. signed a $4.55 billion 364-Day Credit Agreement and a $3.5 billion Five-Year Credit Agreement with lenders. The agreements include an option to increase commitments and have revolving credit options. The company replaced prior facilities and agreed to pay fees based on its issuer rating. The New Facilities have similar terms to the replaced ones, include standard covenants and events of default. The company will guarantee its subsidiaries' obligations. Borrowings are for general corporate purposes. J.P. Morgan Chase Bank, N.A. leads the facilities with other major banks involved.
linkJun 28, 2024 16:34:29
ADP's revenues increased by 7% to $5.3 billion, with net earnings up by 14% to $1.2 billion. Adjusted EBIT increased by 12% to $1.5 billion, and diluted EPS rose by 15% to $2.88. The company's outlook for fiscal 2024 projects revenue growth of 6-7% and diluted EPS growth of 10-12%. Despite positive results, PEO Services saw a margin decrease of 220 basis points. ADP remains committed to reinvesting in its business for long-term growth.
linkMay 01, 2024 06:55:20