Automatic Data Processing 2025 Q3 Earnings Steady Growth as Net Income Increases 5.5%
Generado por agente de IAAinvest Earnings Report Digest
viernes, 2 de mayo de 2025, 9:16 am ET2 min de lectura
ADP--
Automatic Data Processing (ADP), ranking 104th by market capitalization, reported its fiscal 2025 Q3 earnings on May 01st, 2025. The earnings exceeded analysts' expectations, showcasing a robust 5.5% increase in net income. ADPADP-- maintained its full-year guidance, projecting earnings per share growth of 9 to 11 percent and revenue growth of 5 to 6 percent, aligning with market forecasts. This consistency reflects ADP's operational resilience amidst macroeconomic challenges.
Revenue
The total revenue for Automatic Data ProcessingADP-- rose by 5.7% in 2025 Q3, reaching $5.55 billion, compared to $5.25 billion in 2024 Q3. Employer Services contributed $3.77 billion, while PEO ServicesPEO-- added $1.79 billion. The 'Other' segment reported a minor negative revenue of $3.40 million, maintaining the total revenue at $5.55 billion.
Earnings/Net Income
ADP's earnings per share increased by 6.2% to $3.07 in 2025 Q3 from $2.89 in 2024 Q3, highlighting continued growth. The net income strengthened to $1.25 billion, up by 5.5% from $1.18 billion in the previous year, demonstrating strong profitability. The EPS growth indicates a positive earnings outlook.
Post Earnings Price Action Review
The post-earnings analysis of Automatic Data Processing (ADP) stock reveals generally positive market reactions, with improved win rates over extended periods following earnings releases. Revenue disclosures led to a 56.30% win rate over three days, increasing to 58.29% over thirty days, indicating short-term gains. Net income announcements fostered a slightly better market response, with win rates rising to 59.02% over thirty days. Although earnings per share (EPS) had lower win rates compared to revenue and net income, they still showed positive market engagement. Overall, the trends suggest potential investment opportunities in ADP stock post-earnings, though the maximum observed return was 5.86% over thirty days, indicating moderate gains.
CEO Commentary
Maria Black, President and CEO, highlighted that ADP's solid third-quarter results were driven by strong growth in new business bookings across various segments. Despite softer international bookings due to macroeconomic uncertainty, she remains optimistic about the robust pipelines and large deals internationally. The integration of Workforce Software and the acquisition of PEI in Mexico were noted as strategic initiatives enhancing ADP's global payroll capabilities, maintaining high client retention and satisfaction levels.
Guidance
For fiscal 2025, ADP projects earnings per share growth between 9 to 11 percent and adjusted earnings per share growth from 8 to 10 percent. The company anticipates revenue growth of 5 to 6 percent. Analysts forecast earnings of $9.97 per share, with revenue growth expectations around 5.5 percent, totaling approximately $20.24 billion for the year.
Additional News
In recent weeks, Automatic Data Processing (ADP) has announced several key developments beyond its earnings report. Notably, the company is undergoing a CFO transition, reflecting its ongoing efforts to strengthen its leadership team. Additionally, ADP has declared a regular quarterly dividend, demonstrating its commitment to returning value to shareholders. The company is also actively involved in integrating Workforce Software following its acquisition, which expands ADP's capabilities in global payroll solutions. These strategic moves are part of ADP's broader effort to enhance its market position and drive long-term growth amidst a competitive landscape.
Revenue
The total revenue for Automatic Data ProcessingADP-- rose by 5.7% in 2025 Q3, reaching $5.55 billion, compared to $5.25 billion in 2024 Q3. Employer Services contributed $3.77 billion, while PEO ServicesPEO-- added $1.79 billion. The 'Other' segment reported a minor negative revenue of $3.40 million, maintaining the total revenue at $5.55 billion.
Earnings/Net Income
ADP's earnings per share increased by 6.2% to $3.07 in 2025 Q3 from $2.89 in 2024 Q3, highlighting continued growth. The net income strengthened to $1.25 billion, up by 5.5% from $1.18 billion in the previous year, demonstrating strong profitability. The EPS growth indicates a positive earnings outlook.
Post Earnings Price Action Review
The post-earnings analysis of Automatic Data Processing (ADP) stock reveals generally positive market reactions, with improved win rates over extended periods following earnings releases. Revenue disclosures led to a 56.30% win rate over three days, increasing to 58.29% over thirty days, indicating short-term gains. Net income announcements fostered a slightly better market response, with win rates rising to 59.02% over thirty days. Although earnings per share (EPS) had lower win rates compared to revenue and net income, they still showed positive market engagement. Overall, the trends suggest potential investment opportunities in ADP stock post-earnings, though the maximum observed return was 5.86% over thirty days, indicating moderate gains.
CEO Commentary
Maria Black, President and CEO, highlighted that ADP's solid third-quarter results were driven by strong growth in new business bookings across various segments. Despite softer international bookings due to macroeconomic uncertainty, she remains optimistic about the robust pipelines and large deals internationally. The integration of Workforce Software and the acquisition of PEI in Mexico were noted as strategic initiatives enhancing ADP's global payroll capabilities, maintaining high client retention and satisfaction levels.
Guidance
For fiscal 2025, ADP projects earnings per share growth between 9 to 11 percent and adjusted earnings per share growth from 8 to 10 percent. The company anticipates revenue growth of 5 to 6 percent. Analysts forecast earnings of $9.97 per share, with revenue growth expectations around 5.5 percent, totaling approximately $20.24 billion for the year.
Additional News
In recent weeks, Automatic Data Processing (ADP) has announced several key developments beyond its earnings report. Notably, the company is undergoing a CFO transition, reflecting its ongoing efforts to strengthen its leadership team. Additionally, ADP has declared a regular quarterly dividend, demonstrating its commitment to returning value to shareholders. The company is also actively involved in integrating Workforce Software following its acquisition, which expands ADP's capabilities in global payroll solutions. These strategic moves are part of ADP's broader effort to enhance its market position and drive long-term growth amidst a competitive landscape.
Divulgación editorial y transparencia de la IA: Ainvest News utiliza tecnología avanzada de Modelos de Lenguaje Largo (LLM) para sintetizar y analizar datos de mercado en tiempo real. Para garantizar los más altos estándares de integridad, cada artículo se somete a un riguroso proceso de verificación con participación humana.
Mientras la IA asiste en el procesamiento de datos y la redacción inicial, un miembro editorial profesional de Ainvest revisa, verifica y aprueba de forma independiente todo el contenido para garantizar su precisión y cumplimiento con los estándares editoriales de Ainvest Fintech Inc. Esta supervisión humana está diseñada para mitigar las alucinaciones de la IA y garantizar el contexto financiero.
Advertencia sobre inversiones: Este contenido se proporciona únicamente con fines informativos y no constituye asesoramiento profesional de inversión, legal o financiero. Los mercados conllevan riesgos inherentes. Se recomienda a los usuarios que realicen una investigación independiente o consulten a un asesor financiero certificado antes de tomar cualquier decisión. Ainvest Fintech Inc. se exime de toda responsabilidad por las acciones tomadas con base en esta información. ¿Encontró un error? Reportar un problema
Comentarios
Aún no hay comentarios