ROSELAND, N.J. - ADP (NASDAQ:ADP) reported better-than-expected first quarter fiscal 2025 results and raised its full-year guidance, sending shares up 3.2% in trading.
The human capital management solutions provider posted adjusted earnings per share of $2.33, surpassing analyst estimates of $2.21. Revenue for the quarter rose 7% YoY to $4.83 billion, exceeding the consensus forecast of $4.77 billion.
ADP's strong performance was driven by solid new business bookings growth, improved client revenue retention, and higher client funds interest revenue. The company's adjusted EBIT increased 13% to $1.2 billion, with adjusted EBIT margin expanding 130 basis points to 25.5%.
"We are off to a strong start in fiscal 2025 and are pleased with our financial results and meaningful strategic progress," said Maria Black, President and CEO of ADP.
In light of its recent acquisition of WorkForce Software, ADP updated its full-year outlook. The company now expects revenue growth of 6% to 7%, up from its previous guidance. Adjusted diluted EPS growth is projected at 7% to 9%, also an increase from earlier forecasts.
The company's Employer Services segment is anticipated to see revenue growth of 6% to 7%, with new business bookings growth of 4% to 7%. The PEO Services segment is expected to grow revenue by 5% to 6%.
ADP's CFO Don McGuire expressed confidence in the company's trajectory, stating, "We are focused on continuing to deliver strong financial performance as we make strategic investments to support our long-term growth."
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