ADP announced its fourth quarter and full fiscal year 2025 financial results, reporting consolidated revenue growth of 6% to 7% for the year, with expectations to be at the higher end of this range. Adjusted EBIT margin expansion is projected at 40 to 50 basis points, and adjusted EPS growth is expected to be 8% to 9%.
Key assumptions underpinning the fiscal 2025 outlook include 4% to 7% ES new business bookings growth and ES retention declining only 20 basis points to flat for the year. ES pays per control growth is anticipated at 1% for the full year, with average client funds balance growth raised to 5% to 6%.
For fiscal 2026, management anticipates continued tailwinds from the client funds portfolio. Reinvestment rates are expected to remain above the average yield of maturing securities, which will drive overall yields higher than fiscal 2025 levels, further boosting profitability.
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