Automatic Data Processing
ADP
$266.12 0.54%
Exchange: NASDAQ | Sector: Industrials | Industry: Staffing Employment Services
Q2 2025
Published: Jan 30, 2025

Earnings Highlights

  • Revenue of $5.05B up 8.2% year-over-year
  • EPS of $2.35 increased by 10.3% from previous year
  • Gross margin of 45.7%
  • Net income of 963.20M
  • ""Helping small businesses thrive has been ADP's mission since day one and we are excited to partner with Fiserv to advance this goal and to support the millions of small businesses that drive the US economy." - Maria Black" - Maria Black
ADP
Automatic Data Processing Inc

Executive Summary

In Q2 2025, Automatic Data Processing Inc (ADP) reported a robust revenue growth of 8% year-over-year, totaling $5.05 billion, fueled by strong performance in both Employer Services and Professional Employer Organization (PEO) segments. Adjusted EBITDA expanded margins by 60 basis points, reflecting increased operational efficiencies and solid demand across service offerings. Notably, management reiterated their revenue guidance for the fiscal year, projecting continued growth between 6% and 7%, buoyed by a simultaneous increase in client satisfaction levels that reached an all-time high. The ongoing strategic partnerships, particularly with Fiserv, and technological advancements in artificial intelligence indicate a forward-looking growth trajectory. However, management cautioned investors about potential headwinds from foreign exchange fluctuations and a cyclical slowdown in hiring rates, which could impact the coming quarters.

Key Performance Indicators

Revenue
Increasing
5.05B
QoQ: 4.46% | YoY: 8.15%
Gross Profit
Increasing
2.31B
45.68% margin
QoQ: 4.86% | YoY: 9.47%
Operating Income
Decreasing
1.03B
QoQ: -19.26% | YoY: -13.25%
Net Income
Increasing
963.20M
QoQ: 0.72% | YoY: 9.65%
EPS
Increasing
2.36
QoQ: 0.85% | YoY: 10.28%

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