Automatic Data Processing

Pricing is solid but not unconstrained. FY25 ES revenue growth reflected new business, strong retention, and an increase in pricing, alongside client funds interest and the WorkForce Software contribution. EBIT margin of 25.8 percent (26.0 percent adjusted) and consistent price/mix gains show healthy unit economics.

Still, competition in SMB/mid‑market and procurement discipline in enterprise cap ultimate pricing power. We see steady, measured price increases supported by value delivery and compliance risk mitigation, with add‑on modules as a lever.