ADP Q4 2025 Earnings Call Transcript

ADP's Q4 2025 earnings call was held on July 30, 2025, with CEO Maria Black and CFO Peter Hadley participating. The company released its results earlier that morning, which are available on the SEC's website and ADP's investor relations website. During the call, the company will reference non-GAAP financial measures.

Automatic Data Processing Inc. (ADP) held its fourth-quarter fiscal year 2025 earnings call on July 30, 2025, with CEO Maria Black and CFO Peter Hadley participating. The company released its results earlier that morning, which are available on the SEC's website and ADP's investor relations website [2]. During the call, the company will reference non-GAAP financial measures.

ADP reported an earnings per share (EPS) of $2.26, surpassing the forecasted $2.23 by 1.35%, and revenue of $5.13 billion, up 8% year-over-year, beating the anticipated $5.04 billion by 1.79% [2]. The company maintained impressive gross profit margins of 48.34% and achieved a 6.82% revenue growth over the last twelve months.

Despite these positive results, ADP’s stock experienced a 3.11% decline in pre-market trading, dropping to $299.05. This decline may be attributed to broader market conditions and investor concerns about macroeconomic uncertainties impacting future performance [2]. The stock remains within its 52-week range, having previously reached a high of $329.93.

ADP’s adjusted EBIT margin expanded by 40 basis points in the quarter and 50 basis points for the year, reflecting efficiency improvements. The company's revenue growth was driven by its Employer Services and Professional Employer Organization (PEO) segments, both showing robust revenue growth of 8% and 7%, respectively [2].

The company projects consolidated revenue growth of 5-6% for fiscal year 2026, with adjusted EBIT margin expansion of 50-70 basis points. Adjusted EPS is expected to grow by 8-10%, with an effective tax rate around 23% [2].

CEO Maria Black emphasized ADP’s commitment to innovation and client-centric design, while CFO Peter Hadley highlighted productivity improvements. The executives addressed analyst concerns about the health of ADP’s pipeline and the softness in bookings observed in Q4, expressing confidence in the company's leading market position.

Investors should consider ADP’s strong financial metrics and strategic market positioning, but also be mindful of potential risks such as macroeconomic pressures, competitive pressures, and regulatory changes affecting the HR and payroll sectors [2].

References:
[1] https://www.gurufocus.com/news/3028187/adp-target-price-increased-as-earnings-and-dividend-impress
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-adp-q4-2025-beats-forecasts-stock-dips-93CH-4160528