ADP Delivers Robust End to Fiscal 2025: Revenue, EPS, and Bookings on the Rise
Highlights
- Revenue: $20.6 billion (+7% YoY)
- Q4 Revenue growth: 8%
- Adjusted EPS growth: 8% Q4, 9% full year
- Employer Services new business bookings: $2.1 billion (+3% growth)
- Employer Services retention: 92.1% (+10bps, record high)
- PEO revenue growth: 7%
ADP capped its fiscal year 2025 with a strong performance, as demonstrated by its earnings call this morning. Leading the pack, the payroll and human resource management giant reported a total revenue of $20.6 billion, marking a 7% year-over-year increase, including an 8% growth for the fourth quarter alone.
The company's adjusted earnings per share grew by 8% in the fourth quarter, contributing to an admirable 9% growth for the entire fiscal year. These figures highlight ADP's solid standing despite a somewhat unpredictable economic climate.
A noteworthy performance was seen in ADP's Employer Services division. The segment achieved $2.1 billion in new business bookings, representing a 3% expansion, albeit below initial expectations. This was offset by the remarkable feat of their employer services retention rate touching a record 92.1%, underscoring ADP's unwavering commitment to client satisfaction.
Contributing further to ADP's success, the Professional Employer Organization (PEO) segment experienced a 7% revenue growth, aligning with the company's top expectations. While the PEO margins faced minor contraction due to state unemployment insurance and zero-margin pass-throughs, the overall segment performance reflected a robust new business intake and stable employment indicators.
Overall, ADP's fiscal 2025 results stand as a testament to its strategic investments in technology, customer service, and expanding global capabilities, reinforcing its strong competitive position across diverse markets.