Slide 1: ADP Earnings Call & Webcast Q4 Fiscal 2025
ADP Earnings Call & Webcast Q4 Fiscal 2025 July 30, 2025 Copyright © 2025 ADP, Inc.
Slide 2: Disclaimers
DISCLAIMERS FORWARD-LOOKING STATEMENTS This document and other written or oral statements made from time to time by ADP may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be i
Slide 3: Highlights and Perspectives
HIGHLIGHTS AND PERSPECTIVES STRONG FY25 FINANCIAL AND OPERATING PERFORMANCE: • 7% revenue growth, 50 basis points of Adj. EBIT1 margin expansion, and 9% adjusted diluted EPS1 growth • 3% ES new business bookings growth and better-than-expected ES retention of 92.1% • Company-wide client satisfaction
Slide 4: Q4 Fiscal 2025 Financial Highlights
Q4 FISCAL 2025 FINANCIAL HIGHLIGHTS (Unaudited) TOTAL REVENUES ADJUSTED EBIT1 ADJUSTED DILUTED EPS1 8% 9% 8% 6% Organic Constant Currency 1 Adjusted EBIT1 Margin 40 bps $1,213M $2.26 $5,127M $1,111M $2.09 $4,768M Q4 FY24 Q4 FY25 Q4 FY24 Q4 FY25 Q4 FY24 Q4 FY25 1. For a reconciliation of th
Slide 5: Fiscal 2025 Financial Highlights
FISCAL 2025 FINANCIAL HIGHLIGHTS (Unaudited) TOTAL REVENUES ADJUSTED EBIT1 ADJUSTED DILUTED EPS1 7% 9% 9% 7% Organic Constant Currency 1 Adjusted EBIT1 Margin 50 bps $5,347M $4,890M $10.01 $20,561M $9.18 $19,203M FY24 FY25 FY24 FY25 FY24 FY25 1. For a reconciliation of these non-GAAP finan
Slide 6: Q4 Fiscal 2025 Employer Services Segment Results
Q4 FISCAL 2025 EMPLOYER SERVICES SEGMENT RESULTS (Unaudited) ES REVENUES ES MARGIN Q4 ES HIGHLIGHTS 8% 50 bps • Strong revenue growth supported by better-than-anticipated retention and 6% Organic Constant Currency 1 continued client funds interest revenue growth $3,219M $3,466M 33.0% 33.5% FY2
Slide 7: Q4 Fiscal 2025 PEO Services Segment Results
Q4 FISCAL 2025 PEO SERVICES SEGMENT RESULTS (Unaudited) PEO REVENUES PEO MARGIN Q4 PEO HIGHLIGHTS 7% 20 bps • Strong PEO new business bookings growth produced a record sales quarter • PEO pays per control growth remained stable $1,552M $1,664M 13.4% 13.2% FY25 PEO HIGHLIGHTS • 7% revenue growth,
Slide 8: Fiscal 2026 Outlook
FISCAL 2026 OUTLOOK July 30, 2025 Fiscal 2025 Fiscal 2026 (unaudited) 1 Outlook Revenues $20,561M 5 to 6% 2 Adj. EBIT Margin 26.0% 50 to 70 bps Total ADP 2 Adj. Effective Tax Rate 23.2% ~23% 2 Adj. Diluted EPS $10.01 8 to 10% Revenues $13,883M 5 to 6% Employer ES New Business Bookings $2.1B 4 to 7%
Slide 9: Appendix: Client Funds Investment Strategy Detail
APPENDIX: CLIENT FUNDS INVESTMENT STRATEGY DETAIL Average Balances ($) Average Rates Interest Income / (Expense) ($) July 30, 2025 July 30, 2025 July 30, 2025 Fiscal 2025 Fiscal 2025 Fiscal 2025 Fiscal 2026 Fiscal 2026 Fiscal 2026 (unaudited) 1 (unaudited) 1 (unaudited) 1 Outlook Outlook Outlook Cli
Slide 10: Appendix: Client Funds Portfolio Maturities
APPENDIX: CLIENT FUNDS PORTFOLIO MATURITIES Client Funds Investment Strategy Portfolio 1 at June 30, 2025 Available for Sale Securities Maturities and Book Yields Market Value ($ Millions) $9,000 $8,000 1.5% $7,000 2.6% 3.8% $6,000 4.0% $5,000 3.8% $4,000 $3,000 3.2% $2,000 3.1% 4.5% 4.7% $1,000 $0