Company: ADP
Filing Date: 2025-08-06
Form Type: 10-K
Source: 0000008670-25-000037
Chunk: 68

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-08-06
Form: 10-K
Item: Item 7
Chunk 68
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 as a result of the impact of fewer shares outstanding resulting from the repurchase of approximately 4.4 million shares during fiscal 2025 and 5.1 million shares during fiscal 2024, partially offset by the issuances of shares under our employee benefit plans.

For fiscal 2025, adjusted net earnings and adjusted diluted EPS reflect the changes in components described above.

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ANALYSIS OF REPORTABLE SEGMENTSRevenuesYears EndedJune 30,% Change 20252024As ReportedOrganic Constant CurrencyEmployer Services$13,883.1 $12,980.8 7 %6 %PEO Services6,690.4 6,233.6 7 %7 %Other(12.6)(11.8)n/mn/m$20,560.9 $19,202.6 7 %7 %

Earnings before Income TaxesYears EndedJune 30,% Change 20252024As ReportedEmployer Services$5,008.5 $4,555.5 10 %PEO Services 950.5 921.5 3 %Other(648.9)(604.7)n/m$5,310.1 $4,872.3 9 %

MarginYears EndedJune 30, 20252024YoY GrowthEmployer Services36.1 %35.1 %100 bpsPEO Services14.2 %14.8 %(60) bps

n/m - not meaningful

Employer Services

Revenues

Employer Services' revenues increased in fiscal 2025 due to new business started from new business bookings, strong client retention, an increase in pricing, an increase in interest earned on funds held for clients, the impact from the WorkForce Software acquisition, and an increase in the volume of our pays per control of 1%, as compared to fiscal 2024.

Earnings before Income Taxes

Employer Services' earnings before income taxes increased in fiscal 2025 due to increased revenues, including contributions from client funds interest, discussed above, and operating efficiencies for costs of servicing and implementing our clients on growing revenue, partially offset by increased selling and marketing expenses and the impact from the WorkForce Software acquisition.

Margin

Employer Services' margin increased in fiscal 2025 due to contributions from operating efficiencies for costs of servicing and implementing our clients on growing revenue, and client funds interest revenues discussed above, partially offset by acquisition related expenses.

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