On this page of StockholderLetter.com we present the latest annual shareholder letter from AUTOMATIC DATA PROCESSING INC — ticker symbol ADP. Reading current and past ADP letters to shareholders can bring important insights into the investment thesis.
2025 NOTICE OF ANNUAL MEETING OF STOCKHOLDERS AND PROXY STATEMENT Annual Report on Form 10-K 0 0 C 11 AND Always Designing for People* ADP and the ADP logo Logo are registered trademarks of ADP, ADP Inc. All ALL other marks are the property of their respective owners. Copyright 2025 ADP, ADP Inc
A Letter from our Independent Board Chair Fellow Shareholders, After closing another successful fiscal year, we want to take a moment to reflect on ADP's ADP s many accomplishments in fiscal year 2025. The year was marked by continued durable growth, innovation, and a sustained commitment to serving our valued stakeholders, including our shareholders, partners, and clients. We remain steadfast in our pledge to strong corporate governance practices and active shareholder engagement, while also striving to be a reliable long-term partner to our more than 1.1 million clients. On behalf of your Board of Directors, we thank you for your investment in ADP and the trust you have placed in us to help continue to drive ADP forward. Delivering Solid Financial Outcomes in a Dynamic Environment ADP operates in a large and growing market that is constantly changing as business practices, regulations, and technologies evolve. Our unwavering focus on our three key strategic priorities leading with best-in-class HCM technology, providing unmatched expertise and outsourcing solutions, and benefiting our clients with our global scale continued to contribute to our strong financial outcomes. In fiscal year 2025, we grew revenue by 7% and increased diluted earnings per share by 10%. We returned $3.7 billion in capital to shareholders during fiscal year 2025, comprised of $2.4 billion in dividends and $1.3 billion in share repurchases. ADP's ADP s Board also increased the dividend for the 50th consecutive year. Such sustained growth is a testament to the resilience of our business and our sound capital management policies. Returning capital to our shareholders remains a priority for us. 50 consecutive years of dividend increases Commitment to Strong Corporate Governance We remain committed to sound corporate governance practices that provide our shareholders with meaningful rights and foster strong independent leadership in our boardroom. Our approach is anchored in transparency, accountability, and independence. This method is evident in how we govern the deployment of Al AI throughout our business. ADP previously instituted the Al AI & Data Ethics Council, comprised of both industry leaders and ADP experts, and this council continues to provide guidance with respect to compliance principles ADP should follow while developing products, systems and applications that involve Al AI and data. As we continue to explore the potential that new technologies like generative Al AI can provide, we understand the great responsibility we have to approach these innovations in a way that is ethical, secure, and compliant for our business and the clients and workers we serve around the world. In addition to overseeing governance, the Board helps to oversee talent and succession planning, ensuring a balance of tenure, experience, and culture that fits with the evolving needs of the business. The Board, together with President and CEO Maria Black, helped provide a seamless transition as Peter Hadley stepped into his new role as Chief Financial Officer from Corporate Treasurer on July 1st.
The Board not only oversees talent for Senior Leadership, but also continuously evaluates its own composition and that of its committees. This ensures the Board has the right Average tenure of mix of members to guide the company in delivering long-term sustainable value to our independent director shareholders. The Board comprises both long-tenured members and those with fresher nominees is 5.5 years perspectives, offering expertise from diverse industries and sectors. It is in this context that we are delighted to announce the nominations of Bob Swan and Karen Lynch to the Board. Bob has extensive global operational, financial and business expertise as a former CEO and CFO of large public technology companies. Karen possesses over three decades of experience in the health care field, including serving as CEO of a large public company, and understands how to operate effectively within highly regulated and complex frameworks. We also take this opportunity to thank each of John Jones and Bill Ready, who are not seeking re-election this year, for their respective tremendous contributions to the Board and to ADP. John joined the Board in 2005 and served as ADP's ADP s independent non-executive chairman from 2015 to 2022. His incredible service, insight, and unwavering leadership over the years has been critical to ADP's ADP s success. Bill joined the Board in 2016 and his contributions over the past decade have been vital in supporting the company's company s strategic direction and innovation. Reflecting on our History and Looking Ahead As we enter fiscal year 2026, we reflect on our history. ADP has thrived for more than three quarters of a century and across macroeconomic cycles. We are confident in our ability to meet the demands of an ever-changing HCM landscape to deliver for our shareholders. We appreciate feedback from clients and shareholders alike as we navigate the complexities of the global world of work. In fiscal year 2025, ADP invited or met with shareholders representing nearly half of the company's company s shares outstanding. On behalf of the entire Board of Directors, we appreciate all of the thoughtful feedback shared. Thank you for your continued ownership in ADP and trust in our Board. Sincerely, Thomas J. Lynch Independent Board Chair of ADP
A Letter from our CEO To our Shareholders, For more than 75 years, ADP has shaped the world of work with innovation and expertise, transforming Human Capital Management (HCM) from an administrative challenge to a strategic business advantage. Our mission is to provide insightful HCM solutions that meet the changing needs of our clients and their workers, and we made great progress in fiscal year 2025. We strive each day to exceed the expectations of the more than 1.1 million clients we serve and the over 42 million workers we pay in more than 140 countries and territories. Always Designing for People means we focus on people, leveraging our unparalleled data insights and innovative technology to deliver industry-leading products, premium services, and exceptional experiences that elevate the world of work. A Crowning Achievement We delivered strong fiscal year 2025 results with 7% revenue growth and 10% growth in diluted earnings per share. Strong execution by our sales force produced 3% growth in Employer Services new business bookings to a new record of $2.1 billion. Employer Services client revenue retention improved to 92.1% for the year, approaching our record 92.2% level. In addition, our client satisfaction scores reached new all-time highs, underscoring our significant product investments and the commitment to exemplary service shared by our associates. FISCAL YEAR 2025 BUSINESS HIGHLIGHTS 1.1M+ Clients served 42M+ Workers paid globally 7% Revenue growth 7% 10% Diluted EPS growth 3% 3% Employer Services new business bookings growth 92.1% Employer Services client revenue retention $3.7B in shareholder distributions $2.4B Dividends $1.3B Share Repurchases In addition to these impressive results, we increased our dividend for the 50th consecutive year in fiscal year 2025. ADP is now among an elite group of Dividend "Dividend Kings," Kings, a small number of publicly traded US companies with 50 or more consecutive years of dividend increases. Strong Execution on Strategic Priorities Our fiscal year 2025 accomplishments extend far beyond our strong financial results. We also drove meaningful momentum across all three of our strategic priorities: leading with best-in-class HCM technology, providing unmatched expertise and outsourcing, and benefiting our clients with our global scale. Highlighting a great year for innovation at ADP, we launched ADP Lyric HCM, our flexible, intelligent and human-centric global HR platform to a very strong reception in the market. Lyric's Lyric s momentum continued following its launch, with new clients sold increasing by more than 50% in fiscal year 2025 and its number of live clients doubling compared to the prior year. Our rollout of ADP Assist, which provides the latest AI-driven capabilities in our products, continued supporting millions of interactions with heightened client engagement. In addition, we expanded our embedded payroll offering to broaden the reach of our small business distribution ecosystem.
 • shareholder letter icon 9/25/2025 Letter Continued (Full PDF)
 • stockholder letter icon 9/21/2023 ADP Stockholder Letter
 • stockholder letter icon 9/19/2024 ADP Stockholder Letter
 • stockholder letter icon More "Business Services & Equipment" Category Stockholder Letters
 • Benford's Law Stocks icon ADP Benford's Law Stock Score = 92


ADP Shareholder/Stockholder Letter Transcript:

2025
NOTICE OF ANNUAL
MEETING OF STOCKHOLDERS
AND PROXY STATEMENT
Annual Report on Form 10-K
0 0    
C
11
AND
Always Designing
for People*
ADP and the ADP logo
Logo are registered trademarks of ADP,
ADP Inc. All
ALL other marks are the property of their respective owners. Copyright    2025 ADP,
ADP Inc


A Letter from
our Independent Board Chair
Fellow Shareholders,
After closing another successful fiscal year, we want to take a moment to reflect on ADP's
ADP   s many accomplishments in
fiscal year 2025. The year was marked by continued durable growth, innovation, and a sustained commitment to serving
our valued stakeholders, including our shareholders, partners, and clients. We remain steadfast in our pledge to strong
corporate governance practices and active shareholder engagement, while also striving to be a reliable long-term partner to
our more than 1.1 million clients. On behalf of your Board of Directors, we thank you for your investment in ADP and the
trust you have placed in us to help continue to drive ADP forward.
Delivering Solid Financial Outcomes in a Dynamic Environment
ADP operates in a large and growing market that is constantly changing as business practices, regulations, and technologies
evolve. Our unwavering focus on our three key strategic priorities    
    leading with best-in-class HCM technology, providing
unmatched expertise and outsourcing solutions, and benefiting our clients with our global scale    
    continued to contribute
to our strong financial outcomes. In fiscal year 2025, we grew revenue by 7% and increased diluted earnings per share
by 10%.
We returned $3.7 billion in capital to shareholders during fiscal year 2025, comprised of
$2.4 billion in dividends and $1.3 billion in share repurchases. ADP's
ADP   s Board also increased
the dividend for the 50th consecutive year. Such sustained growth is a testament to the
resilience of our business and our sound capital management policies. Returning capital to
our shareholders remains a priority for us.
50 consecutive years
of dividend increases
Commitment to Strong Corporate Governance
We remain committed to sound corporate governance practices that provide our shareholders with meaningful rights and
foster strong independent leadership in our boardroom. Our approach is anchored in transparency, accountability, and
independence. This method is evident in how we govern the deployment of Al
AI throughout our business. ADP previously
instituted the Al
AI & Data Ethics Council, comprised of both industry leaders and ADP experts, and this council continues
to provide guidance with respect to compliance principles ADP should follow while developing products, systems and
applications that involve Al
AI and data. As we continue to explore the potential that new technologies like generative Al
AI can
provide, we understand the great responsibility we have to approach these innovations in a way that is ethical, secure, and
compliant for our business and the clients and workers we serve around the world.
In addition to overseeing governance, the Board helps to oversee talent and succession planning, ensuring a balance of
tenure, experience, and culture that fits with the evolving needs of the business. The Board, together with President and
CEO Maria Black, helped provide a seamless transition as Peter Hadley stepped into his new role as Chief Financial Officer
from Corporate Treasurer on July 1st.

The Board not only oversees talent for Senior Leadership, but also continuously evaluates
its own composition and that of its committees. This ensures the Board has the right
Average tenure of
mix of members to guide the company in delivering long-term sustainable value to our
independent director
shareholders. The Board comprises both long-tenured members and those with fresher
nominees is 5.5 years
perspectives, offering expertise from diverse industries and sectors. It is in this context that
we are delighted to announce the nominations of Bob Swan and Karen Lynch to the Board.
Bob has extensive global operational, financial and business expertise as a former CEO and CFO of large public technology
companies. Karen possesses over three decades of experience in the health care field, including serving as CEO of a large
public company, and understands how to operate effectively within highly regulated and complex frameworks. We also take
this opportunity to thank each of John Jones and Bill Ready, who are not seeking re-election this year, for their respective
tremendous contributions to the Board and to ADP. John joined the Board in 2005 and served as ADP's
ADP   s independent
non-executive chairman from 2015 to 2022. His incredible service, insight, and unwavering leadership over the years has
been critical to ADP's
ADP   s success. Bill joined the Board in 2016 and his contributions over the past decade have been vital in
supporting the company's
company   s strategic direction and innovation.
Reflecting on our History and Looking Ahead
As we enter fiscal year 2026, we reflect on our history. ADP has thrived for more than three quarters of a century and across
macroeconomic cycles. We are confident in our ability to meet the demands of an ever-changing HCM landscape to deliver
for our shareholders.
We appreciate feedback from clients and shareholders alike as we navigate the complexities of the global world of work.
In fiscal year 2025, ADP invited or met with shareholders representing nearly half of the company's
company   s shares outstanding. On
behalf of the entire Board of Directors, we appreciate all of the thoughtful feedback shared.
Thank you for your continued ownership in ADP and trust in our Board.
Sincerely,
Thomas J. Lynch
Independent Board Chair of ADP

A Letter from
our CEO
To our Shareholders,
For more than 75 years, ADP has shaped the world of work with innovation and expertise, transforming Human Capital
Management (HCM) from an administrative challenge to a strategic business advantage. Our mission is to provide insightful
HCM solutions that meet the changing needs of our clients and their workers, and we made great progress in fiscal
year 2025.
We strive each day to exceed the expectations of the more than 1.1 million clients we serve and the over 42 million workers
we pay in more than 140 countries and territories. Always Designing for People means we focus on people, leveraging our
unparalleled data insights and innovative technology to deliver industry-leading products, premium services, and exceptional
experiences that elevate the world of work.
A Crowning Achievement
We delivered strong fiscal year 2025 results with 7% revenue growth and 10% growth in diluted earnings per share. Strong
execution by our sales force produced 3% growth in Employer Services new business bookings to a new record of $2.1
billion. Employer Services client revenue retention improved to 92.1% for the year, approaching our record 92.2% level. In
addition, our client satisfaction scores reached new all-time highs, underscoring our significant product investments and the
commitment to exemplary service shared by our associates.
FISCAL YEAR 2025
BUSINESS HIGHLIGHTS
1.1M+ Clients served
42M+ Workers paid globally
7% Revenue growth
7%
10% Diluted EPS growth
3%
3% Employer Services new
business bookings growth
92.1% Employer Services
client revenue retention
$3.7B in shareholder
distributions
$2.4B Dividends
$1.3B Share Repurchases
In addition to these impressive results, we increased our dividend for the 50th
consecutive year in fiscal year 2025. ADP is now among an elite group of    Dividend
"Dividend
Kings,"
Kings,    a small number of publicly traded US companies with 50 or more consecutive
years of dividend increases.
Strong Execution on Strategic Priorities
Our fiscal year 2025 accomplishments extend far beyond our strong financial results.
We also drove meaningful momentum across all three of our strategic priorities:
leading with best-in-class HCM technology, providing unmatched expertise and
outsourcing, and benefiting our clients with our global scale.
Highlighting a great year for innovation at ADP, we launched ADP Lyric HCM,
our flexible, intelligent and human-centric global HR platform to a very strong
reception in the market. Lyric's
Lyric   s momentum continued following its launch, with
new clients sold increasing by more than 50% in fiscal year 2025 and its number
of live clients doubling compared to the prior year. Our rollout of ADP Assist, which
provides the latest AI-driven capabilities in our products, continued supporting
millions of interactions with heightened client engagement. In addition, we
expanded our embedded payroll offering to broaden the reach of our small business
distribution ecosystem.



shareholder letter icon 9/25/2025 Letter Continued (Full PDF)
 

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