Company: ADP
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000008670-25-000015
Chunk: 116

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 116
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 and we continued to make broad-based improvements to our products and overall client experience resulting in continued improvement in client satisfaction scores.

Highlights from the nine months ended March 31, 2025 include:  

•Revenue growth of 7% to $15,434.1 million; 7% organic constant currency

•Earnings before income taxes margin expansion of 50 bps, and adjusted EBIT margin expansion of 60 bps 

•Diluted and adjusted diluted earnings per share ("EPS") growth of 10% and 9%, respectively, to $7.75

•Cash returned via shareholder friendly actions of $2.8B, including $1.8B of dividends and $1.0B of share repurchases; including increasing our dividend for the 50th consecutive year

•Closed the PEI (Procesamiento Externo de Informacion, S.C.) acquisition in January

•Closed the WorkForce Software acquisition in October and progressed on integration efforts

For the nine months ended March 31, 2025, we delivered solid revenue growth of 7%, 7% organic constant currency. Our pays per control metric, which represents the number of employees on ADP clients' payrolls in the United States when measured on a same-store-sales basis for a subset of clients ranging from small to large businesses, grew 1% for the nine months ended March 31, 2025 as compared to the nine months ended March 31, 2024. PEO average worksite employees increased 3% for the nine months ended March 31, 2025, as compared to the nine months ended March 31, 2024.

We have a strong business model, generating significant cash flows with low capital intensity, and offer a suite of products that provide critical support to our clients’ HCM functions. We generate sufficient free cash flow to satisfy our cash dividend and our modest debt obligations, which enables us to absorb the impact of downturns and remain steadfast in our re-investments, longer term strategy, and commitments to shareholder friendly actions. We are committed to building upon our past successes by investing in our business through enhancements in research and development and by driving meaningful transformation in the way we operate. Our financial condition remained solid at March 31, 2025, leaving us well positioned to support our clients and our associates.

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RESULTS AND ANALYSIS OF CONSOLIDATED OPERATIONS

Total Revenues

For the three and nine months ended March 31, respectively: