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Jun 30, 2025
ADP Q4 2025 Earnings Report
ADP reported strong fourth-quarter results with solid revenue and earnings growth driven by interest income and segment performance.
Key Takeaways
ADP delivered an 8% increase in revenue and adjusted EPS for Q4 2025, fueled by higher client funds interest revenue and robust Employer and PEO Services performance.
Revenue by Segment
Forward Guidance
ADP expects continued growth in FY26 with moderate revenue and EPS gains driven by ongoing investments and client funds interest strategy.
Positive Outlook
- Revenue growth expected between 5% and 6%
- Adjusted EPS expected to grow 8% to 10%
- Client funds interest revenue projected to increase to $1.29–1.31B
- Employer Services revenue projected to grow 5% to 6%
- PEO Services revenue projected to grow 5% to 7%
Challenges Ahead
- PEO margin expected to decline due to benefit pass-throughs
- Client revenue retention in ES expected to decline 10–30 bps
- State unemployment insurance costs may impact margins
- Zero-margin benefits may pressure profitability
- Slight decline in client short funds yield expected
Historical Earnings Impact
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Avg. Return Before/After Earnings
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