How Investors May Respond To ADP’s Rising Earnings and Revenue in Full-Year 2025 Results

• Automatic Data Processing, Inc. recently announced its full-year results for the period ended June 30, 2025, reporting revenue of US$20.56 billion and net income of US$4.08 billion, both higher than the previous year.
• A key highlight in the report is the continued improvement in earnings per share, with diluted EPS reaching US$9.98 compared to US$9.10 last year.
• Now, we'll look at how this consistent increase in earnings per share influences the company’s broader investment narrative moving forward.

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Automatic Data Processing Investment Narrative Recap

To be an ADP shareholder, you need to believe in the ongoing demand for payroll and HR technology, paired with steady client retention and incremental product innovation. The latest earnings beat, with diluted EPS rising to US$9.98, supports the near-term catalyst of expanding integrated offerings but does not materially reduce the main risk, reliance on international bookings, which remain sensitive to macroeconomic swings and unpredictable deal flows.

Among ADP’s recent moves, the credit agreements totaling over US$7 billion announced in June stand out. While these facilities boost financial flexibility and might underpin future investments or buffer against macro risk, they do not directly change the biggest short-term catalyst: the company's ability to translate product expansion into sustained new client wins. In contrast, investors should be aware of ongoing international uncertainty and the risk that...

Read the full narrative on Automatic Data Processing (it's free!)

Automatic Data Processing's outlook forecasts $24.1 billion in revenue and $5.0 billion in earnings by 2028. This is based on annual revenue growth of 6.1% and a $1.0 billion increase in earnings from the current $4.0 billion level.

Uncover how Automatic Data Processing's forecasts yield a $317.23 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members estimated ADP’s fair value between US$255 and US$489, showcasing six unique analyses. That diversity of opinion comes as earnings growth still faces the risk of uneven international sales, inviting you to compare multiple viewpoints on how the business may perform.

Explore 6 other fair value estimates on Automatic Data Processing - why the stock might be worth as much as 57% more than the current price!

Build Your Own Automatic Data Processing Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Automatic Data Processing research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Automatic Data Processing research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Automatic Data Processing's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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