Company: ADP
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000008670-25-000015
Chunk: 120

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 120
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.2)Other income, net$(63.7)$(64.3)$(0.6)$(256.5)$(196.8)$59.7 

Interest income on corporate funds remained flat for the three months ended March 31, 2025 due to higher average investment balances of $6.3 billion as compared to $5.5 billion for the three months ended March 31, 2024, offset by a decrease in average interest rates of 40 basis points.

Interest income on corporate funds increased for the nine months ended March 31, 2025 due to higher average investment balances of $9.0 billion as compared to $6.8 billion for the nine months ended March 31, 2024, coupled with an increase in average interest rates of 30 basis points.

See Note 12 of our Consolidated Financial Statements for further details on non-service components of pension income, net. 

28

Earnings Before Income Taxes ("EBIT") and Adjusted EBIT 

For the three and nine months ended March 31:

Three Months EndedNine Months EndedMarch 31,March 31,20252024YoY Growth20252024YoY GrowthEBIT$1,621.9 $1,546.3 5 %$4,119.4 $3,783.0 9 %  EBIT Margin29.2 %29.4 %(20) bps26.7 %26.2 %50 bpsAdjusted EBIT$1,629.7 $1,538.7 6 %$4,134.2 $3,779.1 9 %  Adjusted EBIT Margin29.3 %29.3 %10 bps26.8 %26.2 %60 bps

Note: Numbers may not foot due to rounding.

Earnings before income taxes increased for the three and nine months ended March 31, 2025, due to the components discussed above.

EBIT Margin decreased for the three months ended March 31, 2025, due to unfavorable impacts from interest expense, acquisition related expenses, and selling and marketing expenses, partially offset by contributions from client funds interest revenues discussed above and operating efficiencies for costs of servicing and implementing our clients on growing revenue.

EBIT Margin increased for the nine months ended March 31, 2025, due to contributions from client funds interest revenues discussed above, increased