Automatic Data Processing, Inc. (ADP) reported a revenue increase of 7% for the fiscal year ending June 30, 2025, reaching $20.56 billion, compared to $19.20 billion in the previous fiscal year. The company's diluted earnings per share (EPS) also grew by 10% to $9.98, while adjusted diluted EPS rose by 9% to $10.01. The growth in revenue was attributed to new business bookings, strong client retention, increased pricing, and the acquisition of WorkForce Software, which enhanced ADP's capabilities in workforce management.
In terms of operational metrics, ADP's pays per control, which measures the number of employees on its clients' payrolls, grew by 1% year-over-year. The Professional Employer Organization (PEO) segment saw a 3% increase in average worksite employees. Client revenue retention remained strong at 92.1%, reflecting high client satisfaction levels, which reached record highs during the year. ADP's global footprint expanded, with significant growth in markets such as Japan and Saudi Arabia, further solidifying its position in the Human Capital Management (HCM) sector.
Strategically, ADP made notable acquisitions, including WorkForce Software in October 2024, which is expected to drive innovation in workforce management solutions. Additionally, the company acquired Procesamiento Externo de Información, S.C. (PEI) in February 2025, enhancing its local payroll and HCM expertise in Mexico. ADP also launched its new HCM platform, ADP Lyric, designed to address evolving workplace challenges and improve client experiences through personalized solutions.
Financially, ADP's total expenses increased by 7% to $15.60 billion, driven by higher operating costs, research and development expenses, and increased selling and marketing investments. The company reported a 9% increase in earnings before income taxes, reaching $5.31 billion, with an EBIT margin expansion of 50 basis points to 25.8%. As of June 30, 2025, ADP maintained a solid financial position with cash and cash equivalents of $3.35 billion and total assets of $53.37 billion.
Looking ahead, ADP remains optimistic about its growth trajectory, focusing on enhancing its HCM technology, expanding its global scale, and leveraging its expertise in outsourcing solutions. The company plans to continue investing in research and development, particularly in artificial intelligence and other innovative technologies, to further improve client services and operational efficiencies.
About AUTOMATIC DATA PROCESSING INC
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