Filing Flows › Automatic Data Processing (ADP) › Q3 FY25
Automatic Data Processing (ADP) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed May 1, 2025
Automatic Data Processing (ADP) reported revenue of $5.6B for the third quarter fiscal 2025 (Q3 FY25), +6% from a year earlier and +10% from the quarter before. Operating margin was 28.1%, net earnings $1.2B (22.5% of revenue).
Automatic Data Processing, Q3 FY25: revenue $5.6B (+6% year over year), operating margin 28.1%, net earnings $1.2B, operating cash flow $1.5B. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $5.6B | +10% | +6% |
| Operating profit | $1.6B | +33% | +5% |
| Net earnings | $1.2B | +30% | +5% |
| Operating cash flow | $1.5B | +33% | +2% |
| Free cash flow | $1.5B | +34% | +4% |
What changed
Revenue was $5.6B in Q3 FY25, up 6% year over year and up 10% from the previous quarter. HCM was the largest line at 43% of revenue. HCM added $0.11B year over year (up 5%), 38% of the total change.
Operating profit was $1.6B, a 28.1% margin (down 0.1 points year over year). Of the extra revenue versus a year earlier, 25% reached operating profit, below the 28% margin then. Total costs grew 6% against revenue growth of 6%. Net earnings were $1.2B, up 5% year over year. The effective tax rate was 23.0%.
Operating cash flow was $1.5B (up 2% year over year), 122% of net earnings. Non-cash charges added back $0.15B of depreciation and amortization and $0.06B of share-based compensation. Capital expenditures of $0.04B left free cash flow of $1.5B.
Questions
What was Automatic Data Processing's revenue in the third quarter fiscal 2025?
Automatic Data Processing (ADP) reported revenue of $5.6B for the third quarter fiscal 2025 (Q3 FY25), +6% from a year earlier and +10% from the quarter before.
Was Automatic Data Processing profitable in the third quarter fiscal 2025?
Operating profit was $1.6B (28.1% of revenue) and net earnings $1.2B.