Automatic Data Processing (NASDAQ:ADP) shares rose more than 3% intra-day today after the company exceeded expectations in its second-quarter fiscal 2025 results, driven by robust demand for human capital management solutions and an uptick in client funds interest revenue. The company reported adjusted earnings per share of $2.35, outpacing analyst projections of $2.30. Revenue climbed 8% year-over-year to $5.05 billion, surpassing the anticipated $4.97 billion, with organic constant currency growth also reaching 8%.

Net earnings increased 10% to $963 million, while adjusted EBIT rose 11% to $1.3 billion. The adjusted EBIT margin improved by 60 basis points, reaching 25.2%. Despite the strong financial performance, ADP’s stock dipped slightly by 0.1% following the earnings announcement.

The company maintained its full-year fiscal 2025 outlook, expecting revenue growth between 6% and 7%, adjusted EBIT margin expansion of 30 to 50 basis points, and adjusted diluted EPS growth in the range of 7% to 9%.