Automatic Data Processing Inc (ADP) reported impressive results for Q3 2024, with revenue increasing to $5.25 billion, a 12.55% quarter-over-quarter and 6.62% year-over-year growth. Operating income surged by 31.19% from the previous quarter, showcasing operational efficiency amidst a strong demand for cloud-based human capital management solutions. Management emphasized a focused strategy on enhancing digital services, ultimately benefiting from the continued shift towards cloud solutions in the HR space.
The company’s net income rose to $1.18 billion, representing a net income margin of 22.55%. With earnings per share (EPS) at $2.89, up 35.05% sequentially, ADP continues to exhibit strong financial health which signals a favorable outlook for investors. Overall, ADP’s robust performance underscores its operational strength and competitive positioning in the technology sector, particularly in software services for human capital management.