Q3 25 EPS
$3.06
BEAT +2.93%
Est. $2.97
Q3 25 Revenue
$5.55B
BEAT +1.10%
Est. $5.49B
vs S&P Since Q3 25
-55.3%
TRAILING MARKET
ADP -25.3% vs S&P +30.0%
Market Reaction
Did ADP Beat Earnings? Q3 2025 Results
Automatic Data Processing posted a clean beat to open its fiscal third quarter of 2025, with earnings per share of $3.06 clearing the $2.97 consensus estimate by 2.93% and revenue of $5.55 billion topping expectations by 1.10% on 5.7% year-over-year … Read more Automatic Data Processing posted a clean beat to open its fiscal third quarter of 2025, with earnings per share of $3.06 clearing the $2.97 consensus estimate by 2.93% and revenue of $5.55 billion topping expectations by 1.10% on 5.7% year-over-year growth. The quarter's strength was broad-based, with Employer Services delivering 5% revenue growth and margin expanding 20 basis points to 39.8%, while PEO Services accelerated to 7% top-line growth as average worksite employees climbed 2% to roughly 748,000. A meaningful tailwind came from ADP's client funds strategy, where interest on funds held for clients rose 11% to $355.20 million, supported by higher balances and improved yields. Management responded to the momentum by lifting its full-year adjusted EBIT margin expansion guidance to 40 to 50 basis points and narrowing adjusted diluted EPS growth to 8% to 9%, while maintaining its 6% to 7% revenue growth outlook. The quarter also brought a notable leadership transition, with ADP's longtime treasurer named to succeed the outgoing CFO effective July 1.
Key Takeaways
- • Employer Services organic constant currency revenue growth of 5%
- • PEO Services revenues excluding zero-margin benefits pass-throughs increased 8%
- • Interest on funds held for clients increased 11% to $355 million
- • Average client funds balances increased 7% to $44.5 billion
- • Average interest yield on client funds increased 10 basis points to 3.2%
- • U.S. pays per control increased 1%
- • Average PEO worksite employees grew 2% to about 748,000
- • Record-high client satisfaction this fiscal year
- • Employer Services segment margin expanded 20 basis points to 39.8%
ADP YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
ADP Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our solid third quarter results reflect the strength and consistency of our business and the dedication of our associates who helped drive new record highs in client satisfaction this fiscal year.”
— Maria Black, Q3 2025 Earnings Press Release
ADP Earnings Trends
ADP vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ADP EPS Trend
Earnings per share: estimate vs actual
ADP Revenue Trend
Quarterly revenue: estimate vs actual
ADP Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 | — | $3.37 | — | $5.94B | +1.55% |
| Q2 26 BEAT | $2.57 | $2.62 | +2.00% | $5.36B | +0.39% |
| Q1 26 BEAT | $2.44 | $2.49 | +1.94% | $5.18B | +0.81% |
| Q4 25 BEAT FY | $2.23 | $2.23 | +0.00% | $5.13B | +1.62% |
| FY Full Year | $9.98 | $9.98 | -0.01% | $20.56B | +0.40% |
| Q3 25 BEAT | $2.97 | $3.06 | +2.93% | $5.55B | +1.10% |