Strong Q4 and Fiscal 2025 Performance: ADP reported an 8% revenue growth in Q4 and 7% for the full fiscal 2025, with adjusted EBIT margin expansion of 50 basis points and adjusted EPS growth of 9%. This indicates a solid overall business performance despite certain challenges in bookings.

Bookings Growth Underperformance: The company achieved $2.1 billion in Employer Services (ES) new business bookings, a 3% growth that fell below expectations. Challenges were noted particularly in the HR Outsourcing (HRO) segment and some international markets, which experienced delays in client decision-making due to macroeconomic uncertainty. However, the overall pipeline remains healthy.

Retention Rates at Record Levels: Employee retention exceeded expectations, reaching 92.1%, which is nearing the record high of 92.2%. This metric points towards strong client satisfaction and indicates that current offerings are resonating well with clients, reducing churn risk.