Automatic Data Processing
ADP
$266.12 0.54%
Exchange: NASDAQ | Sector: Industrials | Industry: Staffing Employment Services
Q1 2025
Published: Nov 1, 2024

Earnings Highlights

  • Revenue of $4.83B up 7.1% year-over-year
  • EPS of $2.34 increased by 12% from previous year
  • Gross margin of 45.5%
  • Net income of 956.30M
  • ""Our new business pipelines were healthy at the end of the quarter and our Q1 Employer Services retention rate exceeded our expectations..."" - Maria Black
ADP
Automatic Data Processing Inc

Executive Summary

Automatic Data Processing Inc (ADP) reported robust financial results for the first quarter of fiscal 2025, showcasing a solid 7% year-over-year revenue growth to $4.83 billion. The company demonstrated effective cost management with a notable adjusted EBIT margin expansion of 130 basis points, alongside a 12% increase in adjusted EPS to $2.34. Management highlighted a strong performance in new business bookings, particularly within Employer Services and Professional Employer Organization (PEO) segments, with a noteworthy increase in client satisfaction and minor retention declines indicating strong operational performance despite market fluctuations. The recent acquisition of WorkForce Software is poised to enhance ADPรขโ‚ฌโ„ขs positioning in workforce management solutions, indicating strategic growth in a high-demand sector.

Key Performance Indicators

Revenue
Increasing
4.83B
QoQ: 1.35% | YoY: 7.10%
Gross Profit
Increasing
2.20B
45.50% margin
QoQ: -6.83% | YoY: 10.12%
Operating Income
Increasing
1.27B
QoQ: 15.89% | YoY: 13.91%
Net Income
Increasing
956.30M
QoQ: 15.31% | YoY: 11.28%
EPS
Increasing
2.34
QoQ: 15.27% | YoY: 11.96%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2026 5,175.20 2.49 +8.5% View
Q3 2025 5,553.00 3.06 +5.7% View
Q2 2025 5,048.40 2.35 +8.2% View
Q1 2025 4,832.70 2.34 +7.1% View
Q4 2024 4,768.50 2.02 +6.5% View