Earnings Summary: Automatic Data Processing reports higher Q3 revenue and earnings

Automatic Data Processing, Inc. (NASDAQ: ADP), a leading technology company providing human capital management solutions, Wednesday reported an increase in revenues and adjusted earnings for the third quarter of 2024

• Q3 revenues increased 7% from last year to $5.3 billion; up 6% in organic constant currency
• Employer Services revenues increased 8% on a reported basis and 7% on a constant currency basis in Q3
• PEO Services revenues increased 5% in Q3; revenues excluding zero-margin benefits pass-throughs rose 2%
• Interest on funds held for clients increased 29% to $321 million; average client funds balances rose 6% to $41.7 billion
• Net earnings advanced14% to $1.2 billion in the March quarter, and adjusted earnings increased 13% to $1.2 billion
• Earnings per share rose 15% to $2.88 in Q3; adjusted earnings increased 14% to $2.88 per share
• Third-quarter adjusted EBIT climbed 12% to $1.5 billion and adjusted EBIT margin moved up 140 basis points to 29.3%