Summary
Automatic Data Processing, Inc. (ADP) reported strong financial performance for the fiscal year ended June 30, 2025, with total revenues increasing by 7% to $20.56 billion. This growth was driven by new client acquisitions, strong client retention, strategic acquisitions including WorkForce Software, and increased interest income on funds held for clients. The company demonstrated solid operational efficiency, with Earnings Before Income Taxes (EBIT) and Adjusted EBIT margins expanding by 50 basis points, reflecting effective cost management and revenue growth. ADP continues to prioritize innovation and client experience, evidenced by the launch of ADP Lyric HCM and strategic investments in artificial intelligence (AI) and machine learning. The company's commitment to shareholder returns is highlighted by $3.7 billion in cash returned through dividends and share repurchases. With a robust business model characterized by recurring revenue and low capital intensity, ADP is well-positioned to navigate market dynamics and continue delivering value to its clients and shareholders. The company's financial condition remains solid, supported by ample liquidity and strong cash flow generation, enabling continued investment in growth initiatives and a consistent return of capital to stockholders.
Financial Highlights
55 data points| Revenue | $20.56B |
| Cost of Revenue | $11.10B |
| Gross Profit | $9.46B |
| R&D Expenses | $988.60M |
| SG&A Expenses | $4.05B |
| Operating Expenses | $15.60B |
| Interest Expense | $455.90M |
| Net Income | $4.08B |
| EPS (Basic) | $10.02 |
| EPS (Diluted) | $9.98 |
| Shares Outstanding (Basic) | 407.10M |
| Shares Outstanding (Diluted) | 408.70M |
Key Highlights
- 1Reported a 7% increase in total revenues to $20.56 billion for the fiscal year ended June 30, 2025.
- 2Achieved a 50 basis point expansion in both EBIT and Adjusted EBIT margins, showcasing improved profitability.
- 3Returned $3.7 billion to shareholders through dividends ($2.4 billion) and share repurchases ($1.3 billion).
- 4Launched ADP Lyric HCM and acquired WorkForce Software, bolstering its global HCM and workforce management capabilities.
- 5Increased investment in AI and machine learning to enhance product offerings and client experiences.
- 6Maintained strong client retention rates of 92.1% in Employer Services, with client satisfaction scores reaching record highs.
- 7Ended the fiscal year with a solid financial position, approximately $3.3 billion in cash and cash equivalents, and ample liquidity.