Automatic Data Processing, Inc (NASDAQ:ADP) reported fiscal second-quarter 2025 revenues of $5.05 billion, beating the analyst consensus estimate of $4.97 billion. Revenues increased 8% year-over-year.
The human resources management software company reported quarterly adjusted EPS of $2.35, beating the analyst consensus estimate of $2.29.
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Employer Services revenues increased 8% to $3.39 billion. PEO Services revenues increased 8% to $1.66 billion.
Adjusted EBIT increased 11% to $1.3 billion, and adjusted EBIT margin increased 60 bps to 25.2%. Net earnings increased 10% Y/Y to $963 million
ADP held $2.22 billion in cash and equivalents as of December 31, 2024.
CFO Don McGuire noted the benefits of solid new business booking growth and higher client funds interest revenue. CEO Maria Black flagged a healthy HCM demand backdrop and all-time record client satisfaction.
FY25 Outlook: ADP reiterated a revenue growth outlook of 6%-7% or $20.36 billion-$20.46 billion, versus the consensus of $20.40 billion and adjusted diluted EPS growth of 7%-9% or $9.82-$10.01, versus the consensus of $9.96.
Automatic Data Processing stock gained over 25% in the last 12 months.
Price Action: ADP stock is up 4.02% to $310.29 at the last check on Wednesday.
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