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ROSELAND, N.J. - ADP, a global leader in HR and payroll solutions, reported fourth quarter earnings that exceeded analyst expectations, with revenue rising 8% to $5.13 billion compared to the consensus estimate of $5.04 billion. The company posted adjusted earnings per share of $2.26, beating analyst expectations of $2.23.
The payroll processing giant saw its fourth quarter revenue increase 8% YoY, or 6% on an organic constant currency basis. Net earnings rose 10% to $911 million while adjusted EBIT increased 9% to $1.2 billion, representing an adjusted EBIT margin increase of 40 basis points to 23.7%. ADP shares edged up 0.5% following the announcement.
For the full fiscal year 2025, ADP reported a 7% increase in revenue to $20.6 billion, with net earnings rising 9% to $4.1 billion. The company’s Employer Services new business bookings increased 3% for the year to $2.1 billion.
"We concluded fiscal year 2025 with strong revenue and earnings growth," stated Maria Black, President and Chief Executive Officer of ADP. "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."
Looking ahead to fiscal 2026, ADP provided guidance for revenue growth of 5% to 6% and adjusted diluted EPS growth of 8% to 10%. The company also expects adjusted EBIT margin expansion of 50 to 70 basis points and an adjusted effective tax rate of about 23%.
Peter Hadley, Chief Financial Officer, added, "Solid execution and our resilient business model allowed us to produce strong results for the fiscal year."
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