Automatic Data Processing Inc Stock

Automatic Data Processing (ADP) – FY2025 Annual Report

ADP appears to have continued its steady upward trajectory in fiscal 2025, with revenue of roughly $20.6 billion and net earnings of about $4.1 billion. The company seems to have extended a multi-year pattern of consistent growth, with both revenue and profit reaching new highs while margins held broadly stable. Diluted earnings per share advanced to $9.98, aided in part by a modestly shrinking share count.

On the profitability front, revenue growth of around 7% was accompanied by faster net income growth of roughly 9% and notably stronger EBITDA growth near 17%. What stands out is the outsized contribution from interest on funds held for clients, which appears to have climbed to nearly $1.2 billion—up sharply over two years—likely reflecting the elevated interest rate environment. This high-margin revenue stream seems to be an important driver of the margin resilience, alongside steady expansion in the core Employer Services segment. The PEO segment's pre-tax earnings, by contrast, appear relatively flat, suggesting the growth engine remains tilted toward Employer Services and float income.