ADP Reports Strong Q1 Results

ROSELAND, N.J. – ADP (NASDAQ:ADP) reported better-than-expected results for the first quarter of fiscal 2025, leading to a 3.2% rise in shares.

The human capital management solutions provider announced adjusted earnings per share of $2.33, outperforming analyst estimates of $2.21. Revenue increased 7% Year-over-Year (YoY) to $4.83 billion, exceeding the consensus forecast of $4.77 billion.

ADP's robust performance was attributed to strong new business bookings growth, improved client revenue retention, and increased interest revenue from client funds. The company’s adjusted EBIT rose 13% to $1.2 billion, while the adjusted EBIT margin expanded by 130 basis points to 25.5%.

Maria Black, President and CEO of ADP, stated, “We are off to a strong start in fiscal 2025 and are pleased with our financial results and meaningful strategic progress.”

Following its recent acquisition of WorkForce Software, ADP updated its full-year outlook, forecasting revenue growth of 6% to 7%, up from prior guidance. Adjusted diluted EPS growth is now projected at 7% to 9%.

The Employer Services segment is expected to achieve revenue growth of 6% to 7%, with new business bookings growth of 4% to 7%. The PEO Services segment is projected to grow revenue by 5% to 6%.

CFO Don McGuire expressed confidence in ADP’s trajectory, commenting, “We are focused on continuing to deliver strong financial performance while making strategic investments to support our long-term growth.”

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