Earning Date, Transcript Summary & Report

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ADP Earnings Prediction

The chart below shows how ADP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ADP sees a -0.47% change in stock price 10 days leading up to the earnings, and a +1.41% change 10 days following the report. On the earnings day itself, the stock moves by +0.23%. This data can give you a slight idea of what to expect for the next quarter's release.

ADP Key Earning Data

2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.55B
5.69%
10.00%
Gross Margin
52.15%
0.42%
3.43%
Operating Margin
29.41%
-0.07%
14.21%
Net Margin
22.50%
-0.22%
17.92%
EPS
3.06
6.25%
29.66%
No Data Available

ADP Earnings Analysis

Automatic Data Processing Inc Corporation (ADP.O) Earnings Conference Call

Positive

  • Earnings Per Share Beat: ADP reported earnings per share (EPS) of $3.06, exceeding expectations of $2.97.

  • Strong Revenue Performance: The company achieved 6% revenue growth in Q3 2025, indicating strong performance.

  • EBIT Margin Improvement: Adjusted EBIT margin expanded by 10 basis points, reflecting improved operational efficiency.

  • Adjusted EPS Growth: Adjusted EPS growth was reported at 6%, showcasing solid profitability.

  • Strong Demand for Employer Services: Employer Services new business bookings growth was strong, particularly in U.S. offerings, indicating robust demand.

  • Client Satisfaction and Retention: Client satisfaction scores reached record highs, contributing to strong retention performance.

  • PEO Revenue Exceeds Expectations: PEO revenue growth of 7% exceeded expectations, driven by higher wages and strong retention.

  • New Business Bookings Growth: ADP Lyric HCM saw substantial new business bookings growth, with the pipeline for new business doubling compared to last year.

  • Global Payroll Enhancement: The acquisition of PEI in Mexico enhanced ADP's global payroll capabilities and added local expertise.

  • Client Engagement Events: ADP hosted several successful events, fostering client engagement and industry insights.

  • Sales Acceleration Partnership: The partnership with Fiserv is expected to accelerate sales through integrated solutions.

  • HCM Technology Awards: ADP received multiple awards for its HCM technology, highlighting its industry leadership and innovation.

Negative

  • International Bookings Decline: Softer quarter for international bookings due to macroeconomic uncertainty in key markets.

  • Growth Momentum Challenges: PEO pays per control growth decelerated modestly from the second quarter, indicating potential challenges in maintaining growth momentum.

  • PEO Margin Decline Forecast: Expected decline in PEO margin between 60 to 80 basis points for the full year, reflecting increased costs.

  • Economic Growth Projections: Projections for slower economic growth leading to below-normal pays per control growth next year, indicating potential revenue challenges.

  • Global Macro Uncertainty Impact: Concerns about the impact of global macro uncertainty on international sales, particularly for larger multi-country deals.

Key Financial Performance iconKey Financial Performance
Operating Highlights iconOperating Highlights
Risks or Challenges iconRisks or Challenges
Strategic Initiatives & Outlook iconStrategic Initiatives & Outlook
Shareholder Return Plan iconShareholder Return Plan

ADP FAQs

How does ADP typically perform around its earnings report dates?

ADP's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -0.47% change leading up to the report and a +1.41% change in the 10 days following the release.

Is Automatic Data Processing Inc (ADP) Q3 2025 Earnings Call Summary positive or negative?

How can historical earnings data help predict future stock performance?

ADP Earnings Deck

Automatic Data Processing, Inc. (NASDAQ:ADP) Q3 2025 Earnings Call Transcript

ADP Earning Call Sentiment

Automatic Data Processing, Inc. (NASDAQ:ADP) Q3 2025 Earnings Call Transcript

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ADP.O

0.05%
Positive
The earnings call presents a mixed picture: positive elements include a dividend increase, strategic partnership with Fiserv, and strong revenue growth in PEO and Employer Services. However, concerns arise from declining PEO margins, macroeconomic uncertainty affecting international bookings, and vague management responses in the Q&A. The positive aspects may be tempered by these uncertainties, leading to a neutral stock price reaction.