ADP (ADP) Q4 2025 Earnings
How Did ADP Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: +1.67%.
Did ADP Beat Earnings? Q4 2025 Results
Yes. ADP reported Q4 2025 earnings of $2.23 a share on Jul 30, 2025, beating the $2.23 consensus estimate by 0.2%. Revenue was $5.1B against a $5.0B estimate.
Automatic Data Processing closed fiscal 2025 on a confident note, with Q4 revenue climbing 7.5% year over year to $5.13 billion, clearing the $5.05 billion consensus estimate by 1.62%, while earnings per share of $2.23 landed precisely in line with expectations. <a href="https://247wallst.com/investing/2025/07/30/live-earnings-analysis-will-adp-beat-earnings-today/">Investors tracking the quarter</a> closely watched the Employer Services segment, which proved to be the primary engine behind the results, with full-year revenue rising 7% to $13.88 billion and segment margin expanding 100 basis points to 36.1%, reflecting both client retention improvements to 92.1% and new business bookings growth of 3% to $2.10 billion. Interest on funds held for clients also contributed meaningfully, rising 16% for the full year to $1.19 billion. ADP's responsible debt management and consistent cash generation continue to underpin its financial flexibility as it looks ahead; for fiscal 2026, management guided for revenue growth of 5% to 6%, adjusted EBIT margin expansion of 50 to 70 basis points, and adjusted diluted EPS growth of 8% to 10%.
- Employer Services revenue growth of 8% in Q4, driven by organic growth and acquisitions
- PEO Services revenue growth of 7% in Q4 with average worksite employees up 3% to about 761,000
- Interest on funds held for clients increased 11% in Q4 to $308 million, supported by 6% growth in average client funds balances and 20 basis point yield improvement
- Record-high client satisfaction levels across the company
- Employer Services client revenue retention improved to 92.1%
- Employer Services new business bookings increased 3% to $2.1 billion for the fiscal year
- Net share count reduction contributed to EPS growth
- U.S. pays per control increased 1% in Q4 and for the full year
“We concluded fiscal year 2025 with strong revenue and earnings growth. 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. As we enter a new fiscal year, we remain committed to actively listening to our clients and consistently meeting their needs through cutting-edge products, premium services, and exceptional experiences designed to elevate the world of work.”
ADP CEO, on the earnings call
What Was ADP's Outlook in Q4 2025?
For fiscal 2026, ADP expects consolidated revenue growth of 5% to 6%, adjusted EBIT margin expansion of 50 to 70 basis points, adjusted effective tax rate of about 23%, and adjusted diluted EPS growth of 8% to 10%. Employer Services revenue is expected to grow 5% to 6% with new business bookings growth of 4% to 7%, though client revenue retention is expected to decline 10 to 30 basis points. U.S. pays per control growth is expected at 0% to 1%. PEO Services revenue is projected to grow 5% to 7%, with revenue excluding zero-margin benefits pass-throughs growing 3% to 5% and average worksite employee count growth of 2% to 3%. Interest on funds held for clients is expected to be $1.290 to $1.310 billion, based on anticipated client funds balance growth of 2% to 3% and an average yield increase to approximately 3.4%.
ADP YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $5.1B | $4.8B | +7.5% |
| Net Income | $910.6M | $829.3M | +9.8% |
| Operating Income | $1.2B | $1.1B | +8.5% |
ADP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.