ADP

ADP Q4 2025 Earnings

Reported Jul 30, 2025 at 6:55 AM ET · SEC Source

Q4 25 EPS

$2.23

BEAT +0.00%

Est. $2.23

Q4 25 Revenue

$5.13B

BEAT +1.62%

Est. $5.05B

vs S&P Since Q4 25

-43.5%

TRAILING MARKET

ADP -30.0% vs S&P +13.6%

Full Year 2025 Results

FY 25 EPS

$9.98

MISS 0.01%

Est. $9.98

FY 25 Revenue

$20.56B

BEAT +0.40%

Est. $20.48B

Market Reaction

Did ADP Beat Earnings? Q4 2025 Results

Automatic Data Processing closed fiscal 2025 on a confident note, with Q4 revenue climbing 7.5% year over year to $5.13 billion, clearing the $5.05 billion consensus estimate by 1.62%, while earnings per share of $2.23 landed precisely in line with e… Read more Automatic Data Processing closed fiscal 2025 on a confident note, with Q4 revenue climbing 7.5% year over year to $5.13 billion, clearing the $5.05 billion consensus estimate by 1.62%, while earnings per share of $2.23 landed precisely in line with expectations. Investors tracking the quarter closely watched the Employer Services segment, which proved to be the primary engine behind the results, with full-year revenue rising 7% to $13.88 billion and segment margin expanding 100 basis points to 36.1%, reflecting both client retention improvements to 92.1% and new business bookings growth of 3% to $2.10 billion. Interest on funds held for clients also contributed meaningfully, rising 16% for the full year to $1.19 billion. ADP's responsible debt management and consistent cash generation continue to underpin its financial flexibility as it looks ahead; for fiscal 2026, management guided for revenue growth of 5% to 6%, adjusted EBIT margin expansion of 50 to 70 basis points, and adjusted diluted EPS growth of 8% to 10%.

Key Takeaways

  • Employer Services revenue growth of 8% in Q4, driven by organic growth and acquisitions
  • PEO Services revenue growth of 7% in Q4 with average worksite employees up 3% to about 761,000
  • Interest on funds held for clients increased 11% in Q4 to $308 million, supported by 6% growth in average client funds balances and 20 basis point yield improvement
  • Record-high client satisfaction levels across the company
  • Employer Services client revenue retention improved to 92.1%
  • Employer Services new business bookings increased 3% to $2.1 billion for the fiscal year
  • Net share count reduction contributed to EPS growth
  • U.S. pays per control increased 1% in Q4 and for the full year
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ADP YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

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ADP Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26

“We concluded fiscal year 2025 with strong revenue and earnings growth. Revenue growth in our Employer Services and PEO segments came in at the high-end of our full year expectations, bolstered by record-high client satisfaction levels across the company. As we enter a new fiscal year, we remain committed to actively listening to our clients and consistently meeting their needs through cutting-edge products, premium services, and exceptional experiences designed to elevate the world of work.”

— Maria Black, Q4 2025 Earnings Press Release