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03Detailed Report
ADP
Automatic Data Processing Inc
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 13, 2026
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Executive Summary
In the fourth quarter of fiscal 2024, Automatic Data Processing Inc (ADP) achieved robust financial results marked by a 6% revenue growth, resulting in a total revenue of $4.77 billion. This quarter also witnessed a significant 11% year-on-year growth in adjusted EPS, highlighting the company's strong operational execution. Management attributes this success to broad-based demand across its Employer Services segment, driven by their best-in-class human capital management (HCM) technology and high client satisfaction scores. The company also reported a 7% growth in Employer Services bookings for the fiscal year, exceeding prior guidance, showcasing the firm’s effective competitive strategy and operational momentum. ADP's solid financial foundation emphasizes its sustained focus on technology advancements and client retention.
Key Performance Indicators
Revenue
Increasing
4.77B
QoQ: -9.24% | YoY: 6.49%
Gross Profit
Increasing
2.36B
49.50% margin
QoQ: -5.05% | YoY: 18.45%
Operating Income
Increasing
1.10B
QoQ: -29.33% | YoY: 6.02%
Net Income
Increasing
829.30M
QoQ: -30.01% | YoY: 6.77%
EPS
Increasing
2.03
QoQ: -29.76% | YoY: 7.98%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Overview:
- Revenue: $4.77 billion, up 6% YoY
- Gross Profit: $2.36 billion, Gross Margin: 49.5%
- Operating Income: $1.10 billion, Operating Margin: 23.0%
- Net Income: $829 million, Net Margin: 17.3%
- EPS: $2.03, up 8% YoY
Quarterly Changes:
- Revenue: Previous quarter revenue was $5.25 billion, indicating a QoQ decrease of 9.4%.
- Net Income: QoQ decreased by approximately 30% from $1.17 billion.
- Adjusted EBIT Margin: Expanded by 80 basis points YoY, reflecting improved operational efficiency.
Growth Insights:
Management reported strong performance across segments, with notable highlights in small business client retention and new Enterprise solutions, suggesting a steady demand in HCM solutions amid a resilient labor market. Management stated, "Our sales and marketing team delivered exceptional employer services new business bookings in Q4, on top of a strong Q4 last year."
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
4.77B
6.49%
-9.24%
Gross Profit
2.36B
18.45%
-5.05%
Operating Income
1.10B
6.02%
-29.33%
Net Income
829.30M
6.77%
-30.01%
EPS
2.03
7.98%
-29.76%
Key Financial Ratios
Gross Profit Margin
Good
49.50%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Good
23.00%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
17.40%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.53%
Return on assets suggests inefficient capital allocation
Return on Equity
Good
18.20%
Return on equity shows solid performance and effective asset utilization
Current Ratio
Adequate
1.01
Current ratio meets minimum requirements but limited cushion