Company: ADP
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000008670-25-000047
Chunk: 6

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 6
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arnings before Income TaxesThree Months Ended%ChangeSeptember 30, 20252024As ReportedEmployer Services$1,228.8 $1,164.3 6 %PEO Services218.8 225.6 (3)%Other(140.1)(153.7)n/m$1,307.5 $1,236.2 6 %

MarginThree Months EndedSeptember 30, 20252024YoY GrowthEmployer Services35.2 %35.7 %(50) bpsPEO Services13.0 %14.3 %(140) bps

n/m - not meaningful

Note: Numbers may not foot due to rounding.

Employer Services

Revenues

Employer Services' revenues increased for the three months ended September 30, 2025 due to new business started from new business bookings, strong client retention, an increase in pricing, the impact from the WorkForce Software acquisition, and an increase in interest earned on funds held for clients.

Earnings before Income Taxes

Employer Services' earnings before income taxes increased for the three months ended September 30, 2025, due to increased revenues, including contributions from client funds interest, discussed above, partially offset by increased costs of servicing and implementing our clients on growing revenue, selling and marketing expenses, and costs to develop, support, and maintain our new and existing products.

30

Margin

Employer Services' margin decreased for the three months ended September 30, 2025, due to increased selling and marketing expenses, costs of servicing and implementing our clients on growing revenue, and costs to develop, support, and maintain our new and existing products, partially offset by contributions from client fund interest revenues discussed above.

PEO Services

Revenues

PEO RevenuesThree Months EndedChangeSeptember 30, 20252024$%PEO Services' revenues$1,687.5 $1,574.5 $113.0 7 %Less: PEO zero-margin benefits pass-throughs1,131.0 1,049.2 81.8 8 %PEO Services' revenues excluding zero-margin benefits pass-throughs$556.5 $525.3 $31.2 6 %

PEO Services' revenues increased for the three months ended September 30, 2025 due to the increase in zero-margin benefits pass-throughs, and an increase in average worksite employees of 2%,