NASDAQ$ADP

Automatic Data Processing Inc · Q4 2025 earnings

Q4 2025 earnings · · Before market open · Investor relations

Briefing

ADP reported fourth quarter revenues of $5.1 billion, up 8%, with diluted EPS of $2.23.

Automatic Data Processing Inc. delivered solid Q4 and full-year fiscal 2025 results, with revenue growth of 8% in the quarter and 7% for the year. Strong performance in Employer Services and PEO segments was supported by high client retention and new business bookings. The company provided an optimistic fiscal 2026 outlook with continued margin expansion and EPS growth.

  • Q4 revenues rose 8% to $5.1 billion; full-year revenues reached $20.6 billion, up 7%.
  • Diluted EPS increased 10% to $2.23 in Q4 and 10% to $9.98 for the year.
  • Employer Services new business bookings grew 3% to $2.1 billion for the fiscal year.
  • Fiscal 2026 guidance calls for 5-6% revenue growth, 50-70 bps adjusted EBIT margin expansion, and 8-10% adjusted EPS growth.

Headline financials

Total Revenue

$5.13B

Previous: $4.77B+7.5%
EPS (adj)

$2.26

Previous: $2.09+8.1%
Avg PEO worksite employees

761.0K

No prior period
U.S. pays per control growth

1.0%

No prior period
Net Income

$911M

Previous: $829M+9.8%
Operating Income

$1.19B

Previous: $1.09B+9.3%

Revenue & EPS history

ADP · Revenue · Quarterly

$5.13B

Q4 2025+7.5%vs Q4 2024
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

ADP · $5.13B total across 2 segments · Q4 2025

  • Employer Services
    $3.47B
  • PEO Services
    $1.66B

Forward guidance

ADP expects fiscal 2026 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%.

Tailwinds

  • Continued strong revenue growth expected in both segments.
  • Margin expansion of 50-70 bps anticipated.
  • Employer Services new business bookings growth of 4% to 7%.

Headwinds

  • Client revenue retention expected to decrease 10 to 30 basis points.
  • U.S. pays per control growth projected at only 0% to 1%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2025

Historical avgQ4 2025

-0.1%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+2.5%

Avg return

30 days after

51%

36 / 71 earnings

Positive

+10.8%

Q4 2017

Best reaction

-9.4%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.0%+6.1%+11.4%
Q2 2026-1.2%-6.2%-14.5%
Q1 2026-6.6%-8.0%-8.7%
Q4 2025+0.7%-2.1%-1.5%
Q3 2025+1.6%+2.8%+10.1%
Q2 2025+0.8%+3.0%+5.7%
Q1 2025+0.4%+0.7%+6.6%
Q4 2024+1.4%+0.2%+7.0%
Q3 2024+0.1%+0.4%+1.3%
Q2 2024+3.6%+4.1%+4.7%
Q1 2024-9.0%-10.1%-4.1%
Q4 2023+4.3%+2.8%+5.2%
Q3 2023+2.1%+4.5%+0.4%
Q2 2023-5.7%-7.0%-7.3%
Q1 2023-1.2%+1.7%+11.0%
Q4 2022+9.9%+10.7%+14.9%
Q3 2022+3.3%-1.3%+1.1%
Q2 2022-9.4%-4.9%-5.8%
Q1 2022+1.9%+1.5%+4.9%
Q4 2021+0.5%+0.8%+0.5%
Q3 2021-3.8%-2.3%+0.1%
Q2 2021+1.3%+1.1%+5.8%
Q1 2021+8.3%+10.6%+20.0%
Q4 2020-9.4%-8.3%-3.6%
Q3 2020+2.6%+1.0%+2.4%
Q2 2020-1.8%-2.4%-13.2%
Q1 2020-0.4%-0.6%+4.9%
Q4 2019-0.4%-3.2%+2.9%
Q3 2019-3.6%-2.5%-2.6%
Q2 2019+4.4%+7.2%+14.9%
Q1 2019+2.7%+3.0%+7.4%
Q4 2018-1.4%+0.4%+8.7%
Q3 2018+3.6%+5.7%+11.7%
Q2 2018-0.3%-5.6%-6.0%
Q1 2018-2.7%-2.3%-1.4%
Q4 2017+10.8%+10.2%-1.3%
Q3 2017-4.7%-7.0%-2.9%
Q2 2017-4.6%-4.5%+3.5%
Q1 2017+2.8%+4.2%+9.6%
Q4 2016-6.3%-7.3%-5.4%
Q3 2016-1.9%
Q2 2016+0.8%
Q1 2016-2.2%
Q4 2015-3.1%
Q3 2015+0.7%
Q2 2015+2.4%
Q1 2015+2.2%
Q4 2014-0.7%
Q3 2014+0.8%
Q2 2014-1.0%
Q1 2014-1.7%
Q4 2013-0.7%
Q3 2013+1.9%
Q2 2013+2.0%
Q1 2013-0.7%
Q4 2012-1.4%
Q3 2012-1.6%
Q2 2012-1.6%
Q1 2012-0.7%
Q4 2011-0.7%
Q3 2011+0.7%
Q3 2010+0.7%
Q2 2011+0.1%
Q1 2011-0.7%
Q4 2008-0.2%
Q4 2010-0.2%
Q2 2009+0.7%
Q2 2010+0.7%
Q1 2009+1.7%
Q1 2010+1.7%
Q4 2009+1.7%

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