Automatic Data Processing ( (ADP) ) has released its Q4 earnings. Here is a breakdown of the information Automatic Data Processing presented to its investors.
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Automatic Data Processing, Inc. (ADP) is a global leader in human resources and payroll solutions, providing innovative services to over 1.1 million clients across more than 140 countries.
In its latest earnings report, ADP announced a robust financial performance for the fiscal year 2025, with significant growth in revenue and earnings. The company also provided an optimistic outlook for fiscal 2026, highlighting its commitment to continued growth and client satisfaction.
ADP reported a 7% increase in revenues, reaching $20.6 billion, with net earnings rising by 9% to $4.1 billion. The company’s adjusted EBIT also saw a 9% increase, and the adjusted EBIT margin expanded by 50 basis points to 26.0%. Employer Services and PEO Services both contributed to this growth, with notable increases in new business bookings and client retention rates. Additionally, interest on funds held for clients grew by 16% for the year.
The company remains focused on delivering strong revenue growth and margin expansion in fiscal 2026, with expectations of a 5% to 6% increase in revenue and an 8% to 10% growth in adjusted diluted EPS. ADP’s management emphasizes their strategic focus on client satisfaction and innovative solutions to drive future success.
Looking ahead, ADP is poised to continue its trajectory of growth, leveraging its resilient business model and commitment to innovation to meet the evolving needs of its clients and deliver healthy returns for shareholders.