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Dec 31, 2024

ADP Q2 2025 Earnings Report

Reported an 8% increase in revenues to $5.0 billion and a 10% increase in net earnings to $963 million compared to the second quarter of last year.

Key Takeaways

ADP's second quarter fiscal 2025 results showed strong revenue and earnings growth, with revenues increasing by 8% to $5.0 billion and net earnings increasing by 10% to $963 million. The company is maintaining its fiscal 2025 outlook for revenue growth and adjusted diluted EPS growth.

Revenues increased 8% compared to last year's second quarter to $5.0 billion.

Net earnings increased 10% to $963 million.

Adjusted EBIT increased 11% to $1.3 billion.

Diluted earnings per share increased 10% to $2.35.

Total Revenue
$5.05B
Previous year: $4.67B
+8.1%
EPS
$2.35
Previous year: $2.13
+10.3%
Pays per control growth
1%
Previous year: 2%
-50.0%
Avg Paid PEO Employees
746K
Previous year: 725K
+2.9%
Paid PEO Employees (end)
751K
Previous year: 728K
+3.2%
Gross Profit
$2.31B
Previous year: $2.11B
+9.5%
Cash and Equivalents
$2.22B
Previous year: $1.64B
+35.0%
Free Cash Flow
$1.11B
Previous year: $978M
+13.6%
Total Assets
$64.1B
Previous year: $57.1B
+12.3%

ADP

ADP

ADP Revenue by Segment

Forward Guidance

ADP is maintaining its fiscal 2025 consolidated outlook for revenue growth of 6% to 7%, adjusted EBIT margin expansion of 30 to 50 basis points, and adjusted diluted EPS growth of 7% to 9%.

Positive Outlook

  • Revenue growth of 6% to 7%.
  • Adjusted EBIT margin expansion of 30 to 50 basis points.
  • Adjusted effective tax rate of about 23%.
  • Diluted EPS growth of 8% to 10%.
  • Adjusted diluted EPS growth of 7% to 9%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income