Automatic Data Processing (ADP) reported $5.13 billion in revenue for the quarter ended June 2025, representing a year-over-year increase of 7.5%. EPS of $2.26 for the same period compares to $2.09 a year ago.
The reported revenue represents a surprise of +1.5% over the Zacks Consensus Estimate of $5.05 billion. With the consensus EPS estimate being $2.22, the EPS surprise was +1.8%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how ADP performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Average paid PEO worksite employees during the period: 761 versus the two-analyst average estimate of 757.
- Revenues- Interest on funds held for clients: $307.8 million versus $286.31 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +11.2% change.
- Revenues- Revenues, other than interest on funds held for clients and PEO revenues: $3.16 billion compared to the $3.13 billion average estimate based on four analysts. The reported number represents a change of +7.3% year over year.
- Revenues- PEO revenues: $1.66 billion versus $1.63 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.2% change.
- Segment revenues- Employer Services: $3.47 billion versus the four-analyst average estimate of $3.43 billion. The reported number represents a year-over-year change of +7.7%.
- Segment revenues- PEO Services: $1.66 billion versus $1.63 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +7.2% change.
- Segment revenues- Other: $-3 million versus the two-analyst average estimate of $-2.44 million. The reported number represents a year-over-year change of +25%.
View all Key Company Metrics for ADP here>>>
Shares of ADP have returned -0.5% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Automatic Data Processing, Inc. (ADP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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