Financial Data and Key Metrics Changes - The company reported a solid third quarter with 6% revenue growth, 10 basis points of adjusted EBIT margin expansion, and 6% adjusted EPS growth [9][19] - Employer Services (ES) segment revenue increased by 5% on a reported and organic constant currency basis [19][21] - PEO revenue growth was 7%, exceeding expectations, supported by higher wages and strong retention [21][22] Business Line Data and Key Metrics Changes - New business bookings for Employer Services showed solid growth, particularly in U.S. offerings, while international bookings experienced softness due to macroeconomic uncertainty [10][11] - PEO revenue excluding zero margin pass-through growth was 8%, with average worksite employee growth at 2% [22] - The integration of Workforce Software is progressing well, with strong interest in time and attendance solutions [13][55] Market Data and Key Metrics Changes - The company experienced a decline in international bookings, attributed to macroeconomic uncertainty, but maintains a strong pipeline for future growth [11][30] - U.S. clients continued to hire, with pays per control growth remaining at 1% [11][20] - The company anticipates a continued focus on growth in the Latin America region following the acquisition of PEI in Mexico [14][66] Company Strategy and Development Direction - The company is focused on leading with best-in-class HCM technology and providing unmatched expertise in outsourcing [12][17] - The partnership with Fiserv is expected to enhance distribution and accelerate sales through integrated solutions [15][34] - The company aims to maintain strong client satisfaction and retention levels while investing in products and people for sustainable growth [25][73] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is macroeconomic uncertainty, the underlying economic factors remain strong, with low unemployment and continued hiring [42][44] - The company expects pays per control growth to remain below normal levels in fiscal 2026 due to economic conditions [24][25] - Management remains optimistic about the strength of the pipeline and the potential for growth in the fourth quarter [30][102] Other Important Information - A CFO transition was announced, with Peter Hadley set to succeed Don McGuire effective July 1 [6][8] - The company received several awards for its HCM technology, indicating strong market recognition [17] Q&A Session Summary Question: Can you provide more color on the softer international bookings? - Management indicated that the softness is due to macroeconomic uncertainty, but strong pipelines remain for future growth [30] Question: What is the growth opportunity for the embedded offering with Fiserv? - Management expressed excitement about the partnership, highlighting the potential for significant growth through integrated solutions [34] Question: How is the company addressing client hesitancy in the current macro environment? - Management noted stability in their client base, with continued hiring and strong pipelines, despite some apprehension regarding large deals [42][44] Question: What are the expectations for PEO business in the current environment? - Management reported solid growth in PEO bookings and strong retention, indicating a positive outlook for the segment [51][52] Question: How does the company view its hiring plans in light of current conditions? - Management confirmed no changes to hiring plans, maintaining optimism about business performance [85] Question: What percentage of bookings come from international markets? - Management stated that approximately 12% of revenue comes from international markets, with the majority being domestic [113] Question: How does the company plan to manage margins going forward? - Management indicated that while some margin pressures exist, they expect to recover some costs through integration and operational efficiencies [114]

Financial Performance - Total revenues increased by 6% to $5,553 million in Q3 Fiscal 2025[12] - Adjusted diluted EPS also grew by 6% in Q3 Fiscal 2025[10, 12] - Employer Services (ES) revenues increased by 5% to $3,768 million in Q3 Fiscal 2025[14, 15] - Professional Employer Organization (PEO) revenues increased by 7% to $1,789 million in Q3 Fiscal 2025[24, 25] Segment Highlights - ES margin increased by 20 bps to 39.8% in Q3 Fiscal 2025, driven by client funds interest revenue growth[16, 17, 18] - PEO margin remained flat at 14.2% in Q3 Fiscal 2025, as strong revenue growth was offset by higher workers' compensation and SUI costs[26, 27, 28] - PEO average worksite employees (WSEs) increased by 2% to 748,000[31] Fiscal Year 2025 Outlook - The company anticipates total revenue growth of 6% to 7% for Fiscal Year 2025[33] - The company anticipates adjusted EBIT margin to increase by 40 to 50 bps for Fiscal Year 2025[33]

ADP Reports Third Quarter Fiscal 2025 Results ROSELAND, N.J. – April 30, 2025 – ADP (Nasdaq: ADP), a leading global technology company providing human capital management (HCM) solutions, today announced its third quarter fiscal 2025 financial results and updated its fiscal 2025 outlook. Third Quarter Fiscal 2025 Consolidated Results Compared to last year's third quarter, revenues increased 6% to $5.6 billion and 6% on an organic constant currency basis. Net earnings increased 5% to $1.2 billion, and adjuste ...

Automatic Data Processing, Inc. (ADP) is scheduled to release its third-quarter fiscal 2025 results on April 30, before market open.ADP has a decent earnings surprise history, surpassing the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 3.7%.Automatic Data Processing, Inc. Price, Consensus and EPS Surprise Automatic Data Processing’s Q3 ExpectationsThe Zacks Consensus Estimate for the top line is $5.5 billion, suggesting a 4.6% year-over-year increase. The surge in reve ...

Core Insights - Automatic Data Processing (ADP) is expected to report quarterly earnings of $2.96 per share, a 2.8% increase year-over-year, with revenues projected at $5.49 billion, reflecting a 4.6% year-over-year growth [1] Earnings Projections - Analysts emphasize the importance of revisions to earnings projections prior to a company's earnings release, as these revisions are critical indicators of potential investor behavior [2] - The consensus EPS estimate for ADP has remained unchanged over the past 30 days, indicating a collective reassessment by covering analysts [1] Key Metrics Estimates - Revenue from 'Interest on funds held for clients' is projected to be $330.29 million, marking a 3% increase from the prior-year quarter [4] - 'PEO revenues' are expected to reach $1.73 billion, indicating a year-over-year change of 4.2% [4] - 'Revenues, other than interest on funds held for clients and PEO revenues' are forecasted to be $3.43 billion, suggesting a 4.8% year-over-year increase [5] - 'Segment revenues- Employer Services' are anticipated to be $3.77 billion, reflecting a 5% increase from the prior-year quarter [5] - 'Segment revenues- PEO Services' are projected to reach $1.73 billion, indicating a 3.7% increase from the year-ago quarter [5] Market Performance - ADP shares have decreased by 3.6% over the past month, compared to a 4.8% decline in the Zacks S&P 500 composite, suggesting that ADP is expected to mirror overall market performance in the near future [6]

Company Performance - ADP's shares have increased by 18.5% over the past year, outperforming the industry and the Zacks S&P 500 composite, which declined by 4.5% and 0.6%, respectively [1] - The company reported second-quarter fiscal 2025 earnings per share of $2.4, exceeding consensus estimates by 3.5% and showing a 10.3% increase year-over-year [1] - Total revenues for the same quarter reached $5 billion, surpassing consensus estimates by 1.6% and growing 8.2% year-over-year [1] Business Strategy - ADP operates a three-tier business strategy focused on providing a comprehensive suite of cloud-based human capital management (HCM) and HR outsourcing solutions [2] - The company's expansion strategy emphasizes international HCM and HRO businesses, collaborating with established local software solutions and cloud-based multi-country solutions [2] Acquisitions and Growth - The company has strengthened its customer base and expanded operations in international markets through strategic acquisitions, including Celergo, WorkMarket, The Marcus Buckingham, and Global Cash Card [3] - The recent acquisition of Honu HR, Inc. DBA Sora enhances ADP's strategy to streamline HR processes through automation, improving efficiency and employee experiences [4] Financial Health - ADP has consistently paid dividends, with amounts of $2.2 billion in fiscal 2024, $1.9 billion in 2023, $1.7 billion in 2022, and $1.6 billion in 2021, indicating a commitment to returning value to shareholders [5] - The company's current ratio at the end of the second quarter of fiscal 2025 was 1, lower than the industry's 2.54, but still indicates the ability to meet short-term obligations [6] Industry Challenges - The outsourcing industry is labor-intensive and heavily reliant on foreign talent, with rising talent costs due to competition potentially hindering growth [8] - ADP has experienced a notable increase in expenditures due to ongoing acquisitions and transformation projects, with expenses rising by 6.2% in fiscal 2024, 8% in fiscal 2023, and 10% in fiscal 2022 [8][9]

Group 1 - Automatic Data Processing (ADP) is a US-centric payroll company that provides Human Capital Management (HCM) solutions and HR Outsourcing services [1] - The company has benefited from high-interest rates, generating interest income from over $30 billion in client funds held [1]

Market Overview - Markets started off negatively but ended on an uptrend, with the Dow closing at -0.03%, S&P 500 at +0.38%, and Nasdaq at +0.87% [1] - The small-cap Russell 2000 closed at +0.02% [1] Tariff Developments - An important announcement regarding reciprocal tariffs on U.S. trading partners is expected, with +25% tariffs on most goods from Canada and +25% on all imported goods from Mexico, while +20% on Chinese imports is also anticipated [2] - Market participants are questioning whether blanket tariffs will be implemented or if there will be custom carve-out rates for certain goods [3] Economic Data Insights - The Job Openings and Labor Turnover Survey (JOLTS) for February reported 7.6 million job openings, slightly below expectations of 7.7 million, and down from a record high of 12.1 million in March 2022 [5] - ISM Manufacturing index came in at 49.0%, below the 50.3% from the previous month, while S&P final U.S. Manufacturing rose to 50.2% [6] - Construction Spending increased by 0.7% in February, exceeding the expected 0.3%, with a significant revision of the prior month from -0.2% to -0.5% [7] - Auto Sales for March showed a pull-forward effect before tariffs, with General Motors up 17%, Toyota up 1%, and Ford down 1.3% [8] Upcoming Economic Indicators - Private-sector payrolls from ADP are expected to show an improvement to 120K jobs filled, up from 77K in February [9] - Factory Orders for February are anticipated to decline to +0.6% from +1.7% reported the previous month [10]

Designing better ways to work through cutting-edge products, premium services and exceptional experiences that enable people to reach their full potential. HR, Talent, Time Management, Benefits and Payroll. Informed by data and designed for people. Learn more at ADP.com ADP, the ADP logo, and Always Designing for People are trademarks of ADP, Inc. ROSELAND, N.J., April 1, 2025 /PRNewswire/ -- ADP (Nasdaq: ADP), a leading global provider of Human Capital Management (HCM) solutions, is scheduled to release it ...

Investment professional are calling this an "event week," and if anything, they may be understating it. Today marks the final day of calendar first quarter (Q1), meaning a new earnings season will be brewing over the next couple weeks. It's also Jobs Week, with a full slate: Tuesday brings us the JOLTS report, Wednesday is private- sector payrolls from ADP (ADP) , Thursday has Weekly Jobless Claims and Friday is the Employment Situation report from the U.S. government. The JOLTS numbers (Job Openings and La ...