Automatic Data Processing ( (ADP) ) has realeased its Q1 earnings. Here is a breakdown of the information Automatic Data Processing presented to its investors.
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Automatic Data Processing (ADP) is a global technology company specializing in human capital management solutions, offering services such as HR, talent, time management, benefits, and payroll.
ADP has reported a robust financial performance in its first quarter of fiscal 2025, with a 7% increase in revenues compared to the previous year, reaching $4.8 billion. The company also saw an 11% rise in net earnings, totaling $956 million, alongside strategic advancements such as the acquisition of WorkForce Software.
Key financial highlights include a 13% increase in adjusted EBIT to $1.2 billion and a 13% rise in diluted earnings per share to $2.34. The acquisition of WorkForce Software for $1.2 billion is expected to bolster ADP’s workforce management solutions for large enterprises. The company also updated its full-year revenue growth guidance to 6-7% and adjusted EPS growth to 7-9%.
Employer Services and PEO Services both saw a 7% revenue increase, with notable improvements in segment margins. The interest on funds held for clients surged by 26%, contributing positively to the financial results. ADP’s strategic focus remains on sustaining growth through new business bookings and enhancing client experiences.
Looking ahead, ADP maintains a positive outlook for fiscal 2025, supported by strong new business growth and strategic investments. The company aims to continue its leadership in workforce innovation, leveraging its recent acquisition and product introductions to drive future success.
