What changed in this filing

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Item 1. Financial Statements

2025-10-31 compared with 2025-05-01 · 238 added, 256 removed, 475 unchanged (51% of the section changed)

4 unchanged sentences

(In millions, except per share amounts)

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Three Months Ended

September 30,

Revenues, other than interest on funds held

19 unchanged sentences

Diluted weighted average shares outstanding 406.5 409.5

(A) Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $ 20,293.3 million and $ 18,339.6 million for the three months ended March 31, 2025 and 2024, respectively, and $ 56,907.7 million and $ 52,713.4 million for the nine months ended March 31, 2025 and 2024, respectively.

(A) Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $ 18,534.4 million and $ 17,193.6 million for the three months ended September 30, 2025 and 2024, respectively.

See notes to the Consolidated Financial Statements.

3 unchanged sentences

(In millions)

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Three Months Ended

September 30,

Net earnings $ 1,013.0 $ 956.3

Other comprehensive income/(loss):

Other comprehensive income:

Currency translation adjustments ( 15.5 ) 49.2

Unrealized net gains/(losses) on available-for-sale securities 386.2 ( 91.0 ) 826.9 618.8

Unrealized net gains on available-for-sale securities 215.7 864.4

Tax effect ( 48.3 ) ( 197.9 )

Reclassification of realized net losses on available-for-sale securities to net earnings 0.1 1.2 0.8 5.2

Reclassification of realized net (gains)/losses on available-for-sale securities to net earnings ( 1.5 ) 0.2

Tax effect 0.3 —

Unrealized loss on cash flow hedging activities ( 4.7 ) — ( 17.2 ) —

Unrealized losses on cash flow hedging activities — ( 12.5 )

Tax effect — 3.1

3 unchanged sentences

Tax effect ( 0.3 ) ( 0.3 )

Other comprehensive income/(loss), net of tax 342.7 ( 106.7 ) 622.3 453.9

Other comprehensive income, net of tax 152.7 708.1

Comprehensive income $ 1,165.7 $ 1,664.4

4 unchanged sentences

(In millions, except per share amounts)

March 31, June 30,

September 30, June 30,

Current assets:

Cash and cash equivalents $ 2,478.0 $ 3,347.8

Short-term marketable securities (A) 5,466.1 4,498.8

Accounts receivable, net of allowance for doubtful accounts of $ 46.0 and $ 47.1 , respectively

4 unchanged sentences

Total current assets 44,202.5 43,252.2

Long-term receivables, net of allowance for doubtful accounts of $ 0.2 and $ 0.1 , respectively

Property, plant and equipment, net 646.7 655.4

13 unchanged sentences

Obligations under reverse repurchase agreements (A) 247.4 38.4

Short-term debt 1,000.7 1.1

Obligations under commercial paper borrowings 5,208.0 4,769.5

Income taxes payable 116.5 9.1

15 unchanged sentences

authorized, 1,000.0 shares;

issued, 638.7 shares at March 31, 2025 and June 30, 2024;

outstanding, 406.3 and 408.1 shares at March 31, 2025 and June 30, 2024, respectively

issued, 638.7 shares at September 30, 2025 and June 30, 2025;

outstanding, 404.9 and 405.3 shares at September 30, 2025 and June 30, 2025, respectively

Capital in excess of par value 2,868.0 2,788.3

1 unchanged sentence

Treasury stock - at cost:

232.4 and 230.6 shares at March 31, 2025 and June 30, 2024, respectively

233.8 and 233.4 shares at September 30, 2025 and June 30, 2025, respectively

( 21,449.8 ) ( 21,021.4 )

2 unchanged sentences

Total liabilities and stockholders’ equity $ 54,320.8 $ 53,369.3

(A ) As of June 30, 2024, $ 384.0 million of short-term marketable securities and $ 1.4 million of cash and cash equivalents have been pledged as collateral under the Company's reverse repurchase agreements (see Note 10).

(A ) As of September 30, 2025, $ 247.4 million of short-term marketable securities have been pledged as collateral under the Company's reverse repurchase agreements.

As of June 30, 2025, $ 38.4 million of short-term marketable securities have been pledged as collateral under the Company's reverse repurchase agreements (see Note 10).

See notes to the Consolidated Financial Statements.

3 unchanged sentences

(In millions)

Nine Months Ended

Three Months Ended

September 30,

Cash Flows from Operating Activities:

10 unchanged sentences

Changes in operating assets and liabilities:

Increase in accounts receivable ( 138.7 ) ( 496.2 )

Decrease in accounts receivable 102.0 115.4

Increase in deferred contract costs ( 271.4 ) ( 269.8 )

Increase in other assets ( 342.4 ) ( 217.1 )

Increase/(decrease) in accounts payable 42.0 ( 9.1 )

Increase/(decrease) in accrued expenses and other liabilities ( 20.9 ) 139.2

(Decrease)/increase in accounts payable ( 38.0 ) 48.0

Decrease in accrued expenses and other liabilities ( 376.2 ) ( 323.4 )

Net cash flows provided by operating activities 642.3 824.4

5 unchanged sentences

Acquisitions of businesses, net of cash acquired 0.5 —

Proceeds from sale of property, plant, and equipment and other assets 3.3 28.3

Proceeds from the sale of property, plant, and equipment and other assets — 3.3

Other ( 13.7 ) ( 3.1 )

1 unchanged sentence

Cash Flows from Financing Activities:

Net increase in client funds obligations 634.4 10,999.6

Net cash (distributed)/received from the Internal Revenue Service ( 549.2 ) 1,132.0

Net increase/(decrease) in client funds obligations 573.1 ( 10,870.5 )

Net cash distributed from the Internal Revenue Service ( 11.5 ) ( 336.4 )

Payments of debt ( 0.3 ) ( 0.3 )

2 unchanged sentences

Repurchases of common stock ( 366.0 ) ( 372.6 )

Net proceeds from stock purchase plan and stock-based compensation plans 98.7 24.6

Net (repurchases)/proceeds from stock-based compensation plans and stock purchase plan ( 57.8 ) 12.0

Dividends paid ( 626.7 ) ( 572.6 )

Net proceeds related to reverse repurchase agreements 214.8 297.1

Net cash flows (used in)/provided by financing activities ( 1,916.4 ) 9,683.8

Net proceeds from issuance of commercial paper 438.5 4,375.4

Net cash flows provided by/(used in) financing activities 164.1 ( 6,491.5 )

Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents ( 6.7 ) 17.0

17 unchanged sentences

The accompanying Consolidated Financial Statements and footnotes thereto of Automatic Data Processing, Inc., its subsidiaries and variable interest entity (“ADP” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.

Intercompany balances and transactions have been eliminated in consolidation.

The Consolidated Financial Statements and footnotes thereto are unaudited.

6 unchanged sentences

The preparation of financial statements in conformity with U.S.

GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenue, expenses, and accumulated other comprehensive income that are reported in the Consolidated Financial Statements and footnotes thereto.

GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenues, expenses, and other comprehensive income that are reported in the Consolidated Financial Statements and footnotes thereto.

Actual results may differ from those estimates.

6 unchanged sentences

Standard Description Effective Date Effect on Financial Statements or Other Significant Matters

ASU 2024-03 Disaggregation of Income Statement Expenses (Subtopic 220-40) This update improves financial reporting by requiring enhanced disclosures of the expense captions in the Income Statement within the Notes to the financial statements.

ASU 2025-06 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for

Internal-Use Software This update modernizes the accounting guidance for internal-use software costs and requires capitalization of software costs to begin when (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended.

July 1, 2028 (fiscal 2029) The Company is assessing this guidance and has not yet determined the impact of ASU 2025-06 on its consolidated results of operations, financial condition, or cash flows.

ASU 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses This update improves financial reporting by requiring enhanced disclosures of the expense captions in the Income Statement within the Notes to the financial statements.

June 30, 2028

(fiscal 2028) The Company is assessing this guidance.

The adoption will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, and cash flows.

ASU 2023-09 Income Taxes (Topic 740):

The adoption will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows.

Income Taxes (Topic 740):

Improvements to Income Tax Disclosures This update enhances the transparency and decision usefulness of income tax disclosures to better assess how an entity’s operations and related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows.

1 unchanged sentence

(fiscal 2026) The Company is assessing this guidance.

The adoption will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, and cash flows.

ASU 2023-07 Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures This update improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and certain quantitative disclosures.

June 30, 2025

(fiscal 2025) The Company is assessing this guidance.

The adoption will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, and cash flows.

Based upon similar operational and economic characteristics, the Company’s revenues are disaggregated by its three business pillars:

Human Capital Management (“HCM”), HR Outsourcing (“HRO”), and Global Solutions (“Global”), with separate disaggregation for PEO zero-margin benefits pass-through revenues and client funds interest revenues.

The adoption will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows.

Based upon similar operational and economic characteristics, the Company’s revenues are disaggregated as follows:

The Company believes these revenue categories depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors.

The following tables provide details of revenue by our business pillars, and include a reconciliation to the Company’s reportable segments:

Three Months Ended Nine Months Ended

March 31, March 31,

The following tables provide details of the Company's revenues and includes a reconciliation to the Company’s reportable segments:

Three Months Ended

September 30,

Types of Revenues 2025 2024

5 unchanged sentences

Total Revenues $ 5,175.2 $ 4,832.7

Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2025:

Types of Revenues Employer Services PEO Other Total

HCM $ 2,395.1 $ — $ ( 2.8 ) $ 2,392.3

HRO, excluding PEO zero-margin benefits pass-throughs 369.0 695.2 ( 0.6 ) 1,063.6

PEO zero-margin benefits pass-throughs — 1,090.0 — 1,090.0

Global 651.9 — — 651.9

Interest on funds held for clients 351.9 3.3 — 355.2

Total Segment Revenues $ 3,767.9 $ 1,788.5 $ ( 3.4 ) $ 5,553.0

Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2024:

Types of Revenues Employer Services PEO Other Total

HCM $ 2,280.8 $ — $ ( 2.0 ) $ 2,278.8

HRO, excluding PEO zero-margin benefits pass-throughs 342.2 646.4 ( 0.5 ) 988.1

PEO zero-margin benefits pass-throughs — 1,016.3 — 1,016.3

Global 649.8 — — 649.8

Interest on funds held for clients 317.9 2.9 — 320.8

Total Segment Revenues $ 3,590.7 $ 1,665.6 $ ( 2.5 ) $ 5,253.8

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2025:

Reconciliation of disaggregated revenue to our reportable segments for the three months ended September 30, 2025:

Types of Revenues Employer Services PEO Other Total

5 unchanged sentences

Total Segment Revenues $ 3,491.2 $ 1,687.5 $ ( 3.5 ) $ 5,175.2

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2024:

Reconciliation of disaggregated revenue to our reportable segments for the three months ended September 30, 2024:

Types of Revenues Employer Services PEO Other Total

6 unchanged sentences

Contract Balances

The timing of revenue recognition for HCM, HRO and Global is consistent with the invoicing of clients, as invoicing occurs in the period the services are provided.

The timing of revenue recognition for our HCM, HRO and Global Solutions is consistent with the invoicing of clients, as invoicing occurs in the period the services are provided.

Therefore, the Company does not recognize a contract asset or liability resulting from the timing of revenue recognition and invoicing.

Changes in deferred revenues related to set up fees for the nine months ended March 31, 2025 were as follows:

Changes in deferred revenues related to set up fees for the three months ended September 30, 2025 were as follows:

Contract Liability

3 unchanged sentences

Currency translation adjustments 1.3

Contract liability, March 31, 2025 $ 492.2

Contract liability, September 30, 2025 $ 520.6

In October 2024, the Company acquired WorkForce Software, a premier workforce management solutions provider that specializes in supporting large, global enterprises, utilizing cash on hand.

5 unchanged sentences

Cash paid for acquisition of business, net of cash acquired $ 1,158.3

The preliminary allocation of the purchase price is based upon estimates and assumptions that are subject to change within the measurement period, which is one year from the acquisition date.

The primary areas of the purchase price allocation that are not yet finalized relate to the measurement of certain assets and liabilities, including identifiable intangible assets.

Accordingly, the measurement period for such purchase price allocations will end when the information becomes available but will not exceed twelve months from the date of acquisition.

The acquisition was accounted for using the acquisition method of accounting.

The Company recognized assets acquired and liabilities assumed at their fair value as of the date of acquisition, with the excess recorded to goodwill.

The preliminary purchase price allocation for WorkForce Software is as follows:

The purchase price allocation for WorkForce Software is as follows:

Accounts receivable, net of allowance for doubtful accounts 20.0

1 unchanged sentence

Goodwill 885.8

Deferred income taxes, net of valuation allowance 45.9

All other assets 14.8

1 unchanged sentence

Deferred revenue $ 39.6

Deferred income taxes 12.8

All other liabilities 60.6

15 unchanged sentences

Shares Diluted

Three Months Ended March 31, 2025

Net earnings $ 1,249.5 $ 1,249.5

Weighted average shares (in millions) 406.9 0.6 1.0 408.5

EPS $ 3.07 $ 3.06

Three Months Ended March 31, 2024

Net earnings $ 1,184.9 $ 1,184.9

Weighted average shares (in millions) 410.5 0.7 0.9 412.1

EPS $ 2.89 $ 2.88

Nine Months Ended March 31, 2025

Three Months Ended September 30, 2025

Net earnings $ 1,013.0 $ 1,013.0

1 unchanged sentence

EPS $ 2.50 $ 2.49

Nine Months Ended March 31, 2024

Three Months Ended September 30, 2024

Net earnings $ 956.3 $ 956.3

1 unchanged sentence

EPS $ 2.34 $ 2.34

For the three and nine months ended March 31, 2025 and 2024, there were no stock options excluded from the calculation of diluted earnings per share due to anti-dilution.

Shares that could potentially dilute basic EPS in the future include outstanding share-based compensation awards, discussed in Note 12.

For the three months ended September 30, 2025, there were 0.3 million shares excluded from the calculation of diluted EPS because their inclusion would have been anti-dilutive.

For the three months ended September 30, 2024, there were no shares excluded from the calculation of diluted EPS.

Other (Income)/Expense, Net

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Three Months Ended

September 30,

Interest income on corporate funds $ ( 101.5 ) $ ( 91.7 )

Realized losses on available-for-sale securities, net 0.1 1.2 0.8 5.2

Realized (gains)/losses on available-for-sale securities, net ( 1.5 ) 0.2

Gain on sale of assets — ( 2.4 )

2 unchanged sentences

Corporate Investments and Funds Held for Clients

Corporate investments and funds held for clients at March 31, 2025 and June 30, 2024 were as follows:

March 31, 2025

Corporate investments and funds held for clients at September 30, 2025 and June 30, 2025 were as follows:

September 30, 2025

Losses Fair Market Value (A)

4 unchanged sentences

Treasury securities 10,874.5 103.6 ( 32.3 ) 10,945.8

Canadian government obligations and Canadian government agency obligations

2,167.1 21.1 ( 37.0 ) 2,151.2

government agency securities 1,588.4 2.0 ( 91.8 ) 1,498.6

Asset-backed securities 2,060.9 28.5 ( 11.1 ) 2,078.3

Canadian government obligations and

Canadian government agency obligations 1,747.7 19.2 ( 25.0 ) 1,741.9

Canadian provincial bonds 1,123.1 18.0 ( 22.6 ) 1,118.5

Commercial mortgage-backed securities 467.2 0.4 ( 22.0 ) 445.6

government agency securities 1,007.4 4.4 ( 69.0 ) 942.8

Other securities 2,037.8 11.4 ( 51.1 ) 1,998.1

1 unchanged sentence

Total corporate investments and funds held for clients $ 39,855.5 $ 333.3 $ ( 544.8 ) $ 39,644.0

(A) Included within available-for-sale securities are funds held for clients with fair values of $ 33,856.6 million.

There are no corporate investments included within available-for-sale securities at March 31, 2025.

All available-for-sale securities were included in Level 2 of the fair value hierarchy.

(A) Included within available-for-sale securities are corporate investments with fair values of $ 5,466.1 million and funds held for clients with fair values of $ 30,186.2 million.

All available-for-sale securities are included in Level 2 of the fair value hierarchy.

June 30, 2025

7 unchanged sentences

1,972.0 16.4 ( 32.4 ) 1,956.0

government agency securities 1,645.0 0.5 ( 140.6 ) 1,504.9

Asset-backed securities 1,837.8 22.6 ( 15.5 ) 1,844.9

government agency securities 1,328.5 2.3 ( 80.0 ) 1,250.8

Canadian provincial bonds 1,155.8 13.8 ( 27.7 ) 1,141.9

Commercial mortgage-backed securities 535.9 — ( 35.1 ) 500.8

Other securities 1,977.3 7.2 ( 62.8 ) 1,921.7

5 unchanged sentences

The Company concurred with and did not adjust the prices obtained from the independent pricing service.

The Company had no available-for-sale securities included in Level 1 or Level 3 at March 31, 2025.

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of March 31, 2025, are as follows:

March 31, 2025

The Company had no available-for-sale securities included in Level 1 or Level 3 at September 30, 2025.

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of September 30, 2025, are as follows:

September 30, 2025

Securities in Unrealized Loss Position Less Than 12 Months Securities in Unrealized Loss Position Greater Than 12 Months Total

3 unchanged sentences

Treasury securities ( 4.3 ) 955.1 ( 28.0 ) 1,809.1 ( 32.3 ) 2,764.2

Canadian government obligations and Canadian government agency obligations

( 0.1 ) 19.9 ( 36.9 ) 1,115.6 ( 37.0 ) 1,135.5

government agency securities ( 0.1 ) 22.9 ( 91.7 ) 1,304.1 ( 91.8 ) 1,327.0

Asset-backed securities ( 0.2 ) 74.7 ( 10.9 ) 469.7 ( 11.1 ) 544.4

Canadian government obligations and

Canadian government agency obligations ( 0.3 ) 175.1 ( 24.7 ) 686.4 ( 25.0 ) 861.5

Canadian provincial bonds ( 0.3 ) 55.8 ( 22.3 ) 547.5 ( 22.6 ) 603.3

Commercial mortgage-backed securities ( 0.1 ) 4.0 ( 21.9 ) 419.5 ( 22.0 ) 423.5

government agency securities ( 0.1 ) 10.4 ( 68.9 ) 773.1 ( 69.0 ) 783.5

Other securities ( 0.6 ) 237.2 ( 50.5 ) 1,061.0 ( 51.1 ) 1,298.2

9 unchanged sentences

( 1.4 ) 219.2 ( 31.0 ) 870.2 ( 32.4 ) 1,089.4

government agency securities ( 0.7 ) 51.5 ( 139.9 ) 1,428.2 ( 140.6 ) 1,479.7

Asset-backed securities ( 0.2 ) 101.4 ( 15.3 ) 481.4 ( 15.5 ) 582.8

government agency securities ( 0.1 ) 8.0 ( 79.9 ) 1,093.8 ( 80.0 ) 1,101.8

Canadian provincial bonds ( 0.8 ) 44.3 ( 26.9 ) 588.8 ( 27.7 ) 633.1

Commercial mortgage-backed securities ( 0.5 ) 11.2 ( 34.6 ) 489.6 ( 35.1 ) 500.8

Other securities ( 1.5 ) 168.4 ( 61.3 ) 1,130.2 ( 62.8 ) 1,298.6

$ ( 10.2 ) $ 1,963.9 $ ( 672.1 ) $ 16,184.9 $ ( 682.3 ) $ 18,148.8

At March 31, 2025, corporate bonds include investment-grade debt securities with a wide variety of issuers, industries, and sectors, primarily carrying credit ratings of A and above, and have maturities ranging from April 2025 through March 2035.

At March 31, 2025, asset-backed securities include AAA-rated senior tranches of securities with predomi nantly prime collateral of fixed-rate auto loan, credit card, and equipment lease receivables with fair values of $ 816.0 million, $ 536.1 million, and $ 211.8 million, respectively.

At September 30, 2025, Corporate bonds include investment-grade debt securities with a wide variety of issuers, industries, and sectors, primarily carrying credit ratings of A and above, and have maturities ranging from October 2025 through September 2035.

At September 30, 2025, asset-backed securities include AAA-rated senior tranches of securities with predomi nantly prime collateral of fixed-rate auto loan, credit card, and device payment plan agreement receivables with fair values of $ 936.6 million, $ 584.7 million, and $ 313.6 million, respectively.

These securities are collateralized by the cash flow s of the underlying pools of receivables.

The primary risk associated with these securities is the collection risk of the underlying receivables.

All collateral on such asset-backed securities has performed as expected through March 31, 2025 .

At March 31, 2025, U.S.

All collateral on such asset-backed securities has performed as expected through September 30, 2025 .

At September 30, 2025, U.S.

government a gency securities primarily include debt directly issued by Federal Farm Credit Banks and Federal Home Loan Banks with fair values of $ 743.2 million and $ 126.8 million, respectively.

government agency securities represent senior, unsecured, non-callable debt that primarily carry ratings of Aaa by Moody's, and AA+ by Standard & Poor's, with maturities ranging from April 2025 through August 2034.

At March 31, 2025, U.S.

government agency commercial mortgage-backed securities, with fair values of $ 445.6 million, include those issued by Federal Home Loan Mortgage Corporation and Federal National Mortgage Association.

At March 31, 2025, other securities primarily include municipal bonds, diversified with a variety of issuers, with credit ratings of A and above with fair val ues of $ 532.1 million, AA-rated United Kingdom Gilt securities of $ 330.7 million, and AAA-rated supranational bonds of $ 227.7 million.

government agency securities represent senior, unsecured, non-callable debt that primarily carry ratings of Aa1 by Moody's, and AA+ by Standard & Poor's, with maturities ranging from November 2025 through May 2035.

At September 30, 2025, other securities primarily include AA-rated United Kingdom Gilt securities of $ 642.5 million, municipal bonds, diversified with a variety of issuers, with credit ratings of A and above with fair val ues of $ 538.6 million, commercial mortgage-backed securities of $ 418.6 million, and AAA-rated supranational bonds of $ 232.6 million.

Classification of corporate investments on the Consolidated Balance Sheets is as follows:

March 31, June 30,

September 30, June 30,

Corporate investments:

Cash and cash equivalents $ 2,478.0 $ 3,347.8

Short-term marketable securities (a) — 384.0

Long-term marketable securities (b) — —

Short-term marketable securities 5,466.1 4,498.8

Total corporate investments $ 7,944.1 $ 7,846.6

(a) - Short-term marketable securities are included within Other current assets on the Consolidated Balance Sheets.

(b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets.

Funds held for clients represent assets that, based upon the Company's intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on our Consolidated Balance Sheets.

Funds held for clients have been invested in the following categories:

March 31, June 30,

September 30, June 30,

Funds held for clients:

5 unchanged sentences

The client funds obligations represent liabilities that will be repaid within one year of the balance sheet date.

The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totalin g $ 40,063.2 million and $ 39,503.9 million at March 31, 2025 and June 30, 2024, respectively.

The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totalin g $ 31,845.6 million and $ 31,343.3 million at September 30, 2025 and June 30, 2025, respectively.

The Company has classified funds held for clients as a current asset since these funds are held solely for the purpose of satisfying the client funds obligations.

Of the Company’s funds held for clients at March 31, 2025 and June 30, 2024, $ 35,394.9 million and $ 34,940.0 million, respectively, are held in the grantor trust.

The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and are eliminated in consolidation.

Of the Company’s funds held for clients at September 30, 2025 and June 30, 2025, $ 28,332.9 million and $ 27,355.2 million, respectively, are held in the grantor trust.

The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and eliminate in consolidation.

The Company has reported the cash flows related to the purchases of corporate and client funds marketable securities and related to the proceeds from the sales and maturities of corporate and client funds marketable securities on a gross basis in the investing section of the Statements of Consolidated Cash Flows.

1 unchanged sentence

The Company has reported the cash flows related to the cash received from and paid on behalf of clients on a net basis within net increase / (decrease) in client funds obligations in the financing activities section of the Statements of Consolidated Cash Flows.

All available-for-sale securities were rated as investment grade at March 31, 2025.

Expected maturities of available-for-sale securities at March 31, 2025 are as follows:

All available-for-sale securities were rated as investment grade at September 30, 2025.

Expected maturities of available-for-sale securities at September 30, 2025 are as follows:

One year or less $ 7,747.6

9 unchanged sentences

The components of operating lease expense were as follows:

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Three Months Ended

September 30,

Operating lease cost $ 30.6 $ 27.5

3 unchanged sentences

The following table provides supplemental cash flow information related to the Company's leases:

Nine Months Ended

Three Months Ended

September 30,

Cash paid for operating lease liabilities $ 32.2 $ 28.8

1 unchanged sentence

Other information related to our operating lease liabilities is as follows:

March 31, June 30,

September 30, June 30,

Weighted-average remaining lease term (in years) 6 6

1 unchanged sentence

Current operating lease liability $ 100.4 $ 100.8

As of March 31, 2025, maturities of operating lease liabilities are as follows:

Three months ending June 30, 2025 $ 28.4

As of September 30, 2025, maturities of operating lease liabilities are as follows:

Nine months ending June 30, 2026 $ 82.9

Twelve months ending June 30, 2027 105.1

7 unchanged sentences

Goodwill and Intangible Assets, net

Changes in goodwill for the nine months ended March 31, 2025 are as follows:

Changes in goodwill for the three months ended September 30, 2025 are as follows:

Services Total

2 unchanged sentences

Currency translation adjustments ( 3.1 ) — ( 3.1 )

Balance at March 31, 2025 $ 3,295.4 $ 4.8 $ 3,300.2

Balance at September 30, 2025 $ 3,270.4 $ 4.8 $ 3,275.2

Components of intangible assets, net, are as follows:

March 31, June 30,

September 30, June 30,

Intangible assets:

9 unchanged sentences

Intangible assets, net $ 1,598.0 $ 1,603.0

Other intangibles consist primarily of purchased rights, trademarks and trade names (acquired directly or through acquisitions).

Other intangibles consist primarily of purchased rights, purchased content, trademarks and trade names (acquired directly or through acquisitions).

All intangible assets have finite lives and, as such, are subject to amortization.

The weighted average remaining useful life of the intangible assets is 6 years ( 6 years for software and software licenses, 4 years for customer contracts and lists, and 3 years for other intangibles).

Amortization of intangible assets was $ 96.3 million and $ 94.9 million for the three months ended March 31, 2025 and 2024, respectively, and $ 286.0 million and $ 285.1 million for the nine months ended March 31, 2025 and 2024, respectively.

Amortization of intangible assets was $ 95.4 million and $ 89.0 million for the three months ended September 30, 2025 and 2024, respectively.

Estimated future amortization expenses of the Company's existing intangible assets are as follows:

Three months ending June 30, 2025 $ 124.7

Nine months ending June 30, 2026 $ 327.2

Twelve months ending June 30, 2027 $ 306.0

6 unchanged sentences

The Company also has a $ 3.5 billion, five year credit facility that matures in June 2029 that contains an accordion feature under which the aggregate commitment can be increased by $ 500 million, subject to the availability of additional commitments.

In addition, the Company also has a five year , $ 3.5 billion credit facility maturing in June 2029 that contains an accordion feature under which the aggregate commitment can be increased by $ 500 million, subject to the availability of additional commitments.

In addition, the Company also has a $ 2.5 billion five year credit facility maturing in June 2030 that contains an accordion feature under which the aggregate commitment can be increased by $ 500 million, subject to the availability of additional commitments.

The interest rate applicable to committed borrowings is tied to SOFR, the effective federal funds rate, or the prime rate depending on the notification provided by the Company to the syndicated financial institutions prior to borrowing.

1 unchanged sentence

The primary uses of the credit facilities are to provide liquidity to the commercial paper program and funding for general corporate purposes, if necessary.

The Company had no borrowings through March 31, 2025 under the credit agreements.

The Company had no borrowings through September 30, 2025 under the credit agreements.

The Company's U.S.

4 unchanged sentences

Maturities of commercial paper can range from overnight to up to 364 days.

At March 31, 2025 and June 30, 2024, the Company had no commercial paper borrowing outstanding.

As of September 30, 2025 and June 30, 2025 the Company had $ 5.2 billion and $ 4.8 billion of commercial paper outstanding, which were repaid in early October 2025 and early July 2025, respectively.

Details of the borrowings under the commercial paper program are as follows:

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Three Months Ended

September 30,

Average daily borrowings (in billions) $ 4.5 $ 4.8

Weighted average interest rates 4.4 % 5.3 %

Weighted average maturity (approximately in days) 2 days 2 days 2 days 2 days

Weighted average maturity (approximately in days) 2 days 2 days

The Company’s U.S., Canadian and United Kingdom short-term funding requirements related to client funds obligations are sometimes obtained on a secured basis through the use of reverse repurchase agreements, which are collateralized principally by government and government agency securities, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities.

These agreements generally have terms ranging from overnight to up to five business days.

At March 31, 2025, the Company had no outstanding obligations related to reverse repurchase agreements.

At June 30, 2024, the Company had $ 385.4 million of outstanding obligations related to reverse repurchase agreements which were fully paid in early July 2024.

As of March 31, 2025, the Company has $ 7.3 billion available on a committed basis under the U.S.

As of September 30, 2025 and June 30, 2025, the Company had $ 247.4 million and $ 38.4 million of outstanding obligations related to reverse repurchase agreements, respectively.

The Company has $ 7.5 billion available on a committed basis under the U.S.

reverse repurchase agreements.

Details of the reverse repurchase agreements are as follows:

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Three Months Ended

September 30,

Average outstanding balances (in billions) $ 4.5 $ 3.8

Weighted average interest rates 4.4 % 5.3 %

The Company issued four series of fixed-rate notes with staggered maturities of 7 and 10 years totaling $ 4.0 billion (collectively the “Notes”).

The Company issued four series of fixed-rate notes with staggered maturities of 7 and 10 years at the time of issuance totaling $ 4.0 billion (collectively the “Notes”).

The Notes are senior unsecured obligations, and interest is payable in arrears, semi-annually.

During the first quarter ended September 30, 2024, the Company issued $ 1.0 billion of senior notes due in 2034 bearing a fixed interest rate of 4.450 %.

In connection with the senior notes issuance, the Company terminated several derivative contracts in place to hedge exposure in changes in benchmark interest rates for the senior notes issued with an aggregate notional amount totaling $ 1.0 billion (of which $ 400.0 million were executed during the first quarter ended September 30, 2024 and $ 600.0 million were executed on the day of issuance).

Since these derivative contracts were classified as cash flow hedges, the unamortized loss of $ 12.5 million was deferred in accumulated other comprehensive income and will be amortized to earnings over the life of the issued Notes as the interest payments are made.

The principal amounts and associated effective interest rates of the Notes and other debt as of March 31, 2025 and June 30, 2024, are as follows:

Debt instrument Effective Interest Rate March 31, 2025 June 30, 2024

Fixed-rate 3.375 % notes due September 15, 2025

3.47 % $ 1,000.0 $ 1,000.0

The principal amounts and associated effective interest rates of the Notes and other debt as of September 30, 2025 and June 30, 2025, are as follows:

Debt instrument Effective Interest Rate September 30, 2025 June 30, 2025

Fixed-rate 1.700 % notes due May 15, 2028

2 unchanged sentences

1.83 % 1,000.0 1,000.0

Fixed-rate 4.750 % notes due May 8, 2032

4.95 % 1,000.0 1,000.0

Fixed-rate 4.450 % notes due September 9, 2034

2 unchanged sentences

4,002.6 4,002.9

current portion ( 1,000.7 ) ( 1.1 )

current portion (a) ( 1.0 ) ( 1.0 )

unamortized discount and debt issuance costs ( 26.0 ) ( 27.2 )

Total long-term debt $ 3,975.6 $ 3,974.7

(a) - Current portion of long-term debt as of September 30, 2025 is included within accrued expenses and other current liabilities on the Consolidated Balance Sheets.

The effective interest rates for the Notes include the interest on the Notes and amortization of the discount and debt issuance costs.

As of March 31, 2025, the fair value of the Notes, based on Level 2 inputs, was $ 3,739.8 million.

As of September 30, 2025, the fair value of the Notes, based on Level 2 inputs, was $ 3,841.6 million.

For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 “Summary of Significant Accounting Policies” in the Company's Annual Report on Form 10-K for fiscal 2025.

In anticipation of the refinancing of our fixed-rate 3.375 % notes due September 15, 2025, the Company entered into a series of treasury rate lock transactions from January 16, 2025 through April 24, 2025, with an aggregate notional amount totaling $ 400.0 million, of which $ 300.0 million were entered into during the third quarter ended March 31, 2025, $ 50.0 million entered into on April 2, 2025 and $ 50.0 million entered into on April 24, 2025, to hedge its exposure to changes in interest rates through the completion of the refinancing.

The derivative contracts entered into during the fiscal year ended June 30, 2025 have been designated as cash-flow hedges and will be terminated upon completion of the refinancing.

Changes in the derivatives’ fair value are recorded each period in other comprehensive income with a corresponding current asset or liability and, upon settlement, the aggregate amount in accumulated other comprehensive income will be amortized into net income over the term of the future debt instrument.

Refer to Note 16 for the impact to accumulated other comprehensive income.

There are no cash flows associated with the derivatives until settlement occurs with the counter-parties.

The treasury rate lock derivatives are classified as Level 2 in the fair value hierarchy as their value is determined using observable inputs such as forward treasury rates.

Employee Benefit Plans

Stock-based Compensation Plans

The Company's share-based compensation consists of stock options, time-based restricted stock, time-based restricted stock units, performance-based restricted stock, and performance-based restricted stock units.

The Company's share-based compensation plan consists of stock options, time-based restricted stock, time-based restricted stock units, performance-based restricted stock, and performance-based restricted stock units.

The Company also offers an employee stock purchase plan for eligible employees .

Beginning in September 2022, the Company discontinued granting stock options, time-based restricted stock and performance-based restricted stock.

Any such future awards will be grants of time-based restricted stock units and/or performance-based restricted stock units, depending on employee eligibility.

Time-based restricted

stock unit awards and performance-based restricted stock unit awards granted to employees with a home country of the United States are settled in stock, and for awards granted to employees with a home country outside the United States are generally settled in cash.

The Company currently utilizes treasury stock to satisfy stock option exercises, issuances under the Company's employee stock purchase plan, and restricted stock units.

Any such future awards granted September 2022 and after will be grants of time-based restricted stock units and/or performance-based restricted stock units, depending on employee eligibility.

Time-based restricted stock unit awards and performance-based restricted stock unit awards granted to employees with a home country of the United States are settled in stock, and awards granted to employees with a home country outside the United States are generally settled in cash.

• Restricted Stock.

• Time-Based Restricted Stock Units.

Time-based restricted stock units generally vest ratably over 3 years.

Awards are generally forfeited if the employee ceases to be employed by the Company prior to vesting.

Time-based restricted stock unit awards granted to employees with a home country of the United States are settled in stock and cannot be transferred during the vesting period.

Time-based restricted stock unit awards granted to employees with a home country outside the United States are generally settled in cash and cannot be transferred during the vesting period.

Compensation expense relating to the issuance of share-settled units is measured based on the fair value of the award on the grant date and recognized on a straight-line basis over the vesting period.

Compensation expense relating to the issuance of cash-settled units is recorded over the vesting period and is initially based on the fair value of the award on the grant date and is subsequently remeasured at each reporting date during the vesting period based on the change in the ADP stock price.

Dividend cash equivalents are paid on share-settled units, and dividend cash equivalents are not paid on cash-settled units.

• Performance-Based Restricted Stock Units.

Performance-based restricted stock units generally vest over a one to three year performance period and a subsequent service period of up to 38 months.

Under these programs, the Company communicates “target awards” at the beginning of the performance period with possible payouts at the end of the performance period ranging from 0 % to 200 % of the “target awards.” Awards are generally forfeited if the employee ceases to be employed by the Company prior to vesting.

Performance-based restricted stock units cannot be transferred and are settled in either cash or stock, depending on the employee's home country.

Compensation expense relating to the issuance of performance-based restricted stock units settled in cash is recognized over the vesting period initially based on the fair value of the award on the grant date with subsequent adjustments to the number of units awarded during the performance period based on probable and actual performance against targets.

In addition, compensation expense is remeasured at each reporting period during the vesting period based on the change in the ADP stock price.

Compensation expense relating to the issuance of performance-based restricted stock units settled in stock is recorded over the vesting period based on the fair value of the award on the grant date with subsequent adjustments to the number of units awarded based on the probable and actual performance against targets.

Dividend equivalents are paid on awards under the performance-based restricted stock unit program.

• Employee Stock Purchase Plan.

The Company offers an employee stock purchase plan that allows eligible employees to purchase shares of common stock at a price equal to 95 % of the market value for the Company's common stock on the last day of the offering period.

This plan has been deemed non-compensatory and, therefore, no compensation expense has been recorded.

The Company currently utilizes treasury stock to satisfy stock option exercises, issuances under the Company's employee stock purchase plan, and restricted stock awards.

From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase program.

The Company repurchased 1.0 million and 1.2 million shares in the three months ended March 31, 2025 and 2024, respectively, and repurchased 3.4 million and 3.3 million shares in the nine months ended March 31, 2025 and 2024, respectively.

The Company repurchased 1.2 million and 1.4 million shares in the three months ended September 30, 2025 and 2024, respectively.

The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions.

The following table represents pre-tax stock-based compensation expense for the three and nine months ended March 31, 2025 and 2024, respectively:

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

The following table represents pre-tax stock-based compensation expense for the three months ended September 30, 2025 and 2024, respectively:

Three Months Ended

September 30,

Operating expenses $ 8.6 $ 9.1

2 unchanged sentences

Total stock-based compensation expense $ 58.7 $ 60.6

During the three months ended September 30, 2025, the following activity occurred under the Company’s existing plans:

Stock Options:

(in thousands) Weighted

Average Price

Options outstanding at July 1, 2025 1,035 $ 164

Options exercised ( 110 ) $ 183

Options forfeited/cancelled — $ —

Options outstanding at September 30, 2025 925 $ 162

Time-Based Restricted Stock Units:

Number of Units

(in thousands)

Restricted units outstanding at July 1, 2025

Restricted units granted

Restricted units vested

Restricted units forfeited

Restricted units outstanding at September 30, 2025

Performance-Based Restricted Stock Units:

Number of Units

(in thousands)

Restricted units outstanding at July 1, 2025

Restricted units granted

Restricted units vested

Restricted units forfeited

Restricted units outstanding at September 30, 2025

Pension Plans

The components of net pension income were as follows:

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

The components of net pension (income)/expense were as follows:

Three Months Ended

September 30,

Service cost – benefits earned during the period $ 2.0 $ 1.5

2 unchanged sentences

Net amortization and deferral 0.8 0.7

Net pension income $ ( 5.0 ) $ ( 5.8 ) $ ( 14.8 ) $ ( 17.4 )

The effective tax rate for the three months ended March 31, 2025 and 2024 was 23.0 % and 23.4 %, respectively.

The decrease in the effective tax rate is primarily due to a benefit for a decrease in uncertain tax position activity and a higher excess tax benefit on stock-based compensation in the three months ended March 31, 2025, partially offset by the benefits of an intercompany transfer of certain assets in the three months ended March 31, 2024.

The effective tax rate for the nine months ended March 31, 2025 and 2024 was 23.1 % and 22.7 %, respectively.

The increase in the effective tax rate is primarily due to a benefit for adjustments to prior year tax liabilities and a valuation allowance release in the nine months ended March 31, 2024.

Net pension (income)/expense $ ( 3.8 ) $ ( 4.9 )

The effective tax rate for the three months ended September 30, 2025 and 2024 was 22.5 % and 22.6 %, respectively.

The decrease in the effective tax rate is primarily due to lower reserves for uncertain tax positions primarily offset by the cost of an intercompany transfer of certain assets and a lower excess tax benefit on stock-based compensation in the three months ended September 30, 2025.

Commitments and Contingencies

15 unchanged sentences

Three Months Ended

March 31, 2025

Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total

Balance at December 31, 2024 $ 63.9 $ 2,619.6 $ 24,335.6 $ ( 20,412.3 ) $ ( 1,528.7 ) $ 5,078.1

Net earnings — — 1,249.5 — — 1,249.5

Other comprehensive income — — — — 342.7 342.7

Stock-based compensation expense — 54.3 — — — 54.3

Issuances relating to stock compensation plans — 46.9 — 13.6 — 60.5

Treasury stock acquired ( 1.0 million shares repurchased)

— — — ( 301.3 ) — ( 301.3 )

Dividends declared ($ 1.54 per share)

— — ( 628.5 ) — — ( 628.5 )

Balance at March 31, 2025 $ 63.9 $ 2,720.8 $ 24,956.6 $ ( 20,700.0 ) $ ( 1,186.0 ) $ 5,855.3

Three Months Ended

March 31, 2024

Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total

Balance at December 31, 2023 $ 63.9 $ 2,262.9 $ 22,757.1 $ ( 19,019.1 ) $ ( 1,745.2 ) $ 4,319.6

Net earnings — — 1,184.9 — — 1,184.9

Other comprehensive loss — — — — ( 106.7 ) ( 106.7 )

Stock-based compensation expense — 48.6 — — — 48.6

Issuances relating to stock compensation plans — 42.5 — 15.0 — 57.5

Treasury stock acquired ( 1.2 million shares repurchased)

— — — ( 301.3 ) — ( 301.3 )

Dividends declared ($ 1.40 per share)

— — ( 575.9 ) — — ( 575.9 )

Balance at March 31, 2024 $ 63.9 $ 2,354.0 $ 23,366.1 $ ( 19,305.4 ) $ ( 1,851.9 ) $ 4,626.7

Nine Months Ended

March 31, 2025

September 30, 2025

Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total

8 unchanged sentences

— — ( 631.2 ) — — ( 631.2 )

Balance at March 31, 2025 $ 63.9 $ 2,720.8 $ 24,956.6 $ ( 20,700.0 ) $ ( 1,186.0 ) $ 5,855.3

Nine Months Ended

March 31, 2024

Balance at September 30, 2025 $ 63.9 $ 2,868.0 $ 25,622.4 $ ( 21,449.8 ) $ ( 730.7 ) $ 6,373.8

Three Months Ended

September 30, 2024

Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock AOCI Total

8 unchanged sentences

— — ( 577.3 ) — — ( 577.3 )

Balance at March 31, 2024 $ 63.9 $ 2,354.0 $ 23,366.1 $ ( 19,305.4 ) $ ( 1,851.9 ) $ 4,626.7

Balance at September 30, 2024 $ 63.9 $ 2,528.6 $ 24,001.2 $ ( 20,144.9 ) $ ( 1,100.2 ) $ 5,348.6

Reclassifications out of Accumulated Other Comprehensive Income/(Loss) (“AOCI”)

1 unchanged sentence

Three Months Ended

March 31, 2025

Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive (Loss)/Income

Balance at December 31, 2024 $ ( 430.6 ) $ ( 840.4 ) $ ( 27.5 ) $ ( 230.2 ) $ ( 1,528.7 )

Other comprehensive income/(loss) before reclassification adjustments 45.3 386.2 ( 4.7 ) — 426.8

Tax effect — ( 87.5 ) 1.2 — ( 86.3 )

Reclassification adjustments to net earnings — 0.1 (A) 1.4 (C) 1.2 (B) 2.7

Tax effect — — ( 0.3 ) ( 0.2 ) ( 0.5 )

Balance at March 31, 2025 $ ( 385.3 ) $ ( 541.6 ) $ ( 29.9 ) $ ( 229.2 ) $ ( 1,186.0 )

Three Months Ended

March 31, 2024

Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive (Loss)/Income

Balance at December 31, 2023 $ ( 331.5 ) $ ( 1,157.5 ) $ ( 21.6 ) $ ( 234.6 ) $ ( 1,745.2 )

Other comprehensive income/(loss) before reclassification adjustments ( 37.4 ) ( 91.0 ) — — ( 128.4 )

Tax effect — 19.1 — — 19.1

Reclassification adjustments to net earnings — 1.2 (A) 1.1 (C) 1.0 (B) 3.3

Tax effect — ( 0.2 ) ( 0.3 ) ( 0.2 ) ( 0.7 )

Balance at March 31, 2024 $ ( 368.9 ) $ ( 1,228.4 ) $ ( 20.8 ) $ ( 233.8 ) $ ( 1,851.9 )

Nine Months Ended

March 31, 2025

Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive (Loss)/Income

September 30, 2025

Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive Income/(Loss)

Balance at June 30, 2025 $ ( 289.8 ) $ ( 338.9 ) $ ( 27.7 ) $ ( 227.0 ) $ ( 883.4 )

Other comprehensive income/(loss) before reclassification adjustments ( 6.5 ) 826.9 ( 17.2 ) — 803.2

Other comprehensive (loss)/income before reclassification adjustments ( 15.5 ) 215.7 — — 200.2

Tax effect — ( 48.3 ) — — ( 48.3 )

1 unchanged sentence

Tax effect — 0.3 ( 0.4 ) ( 0.3 ) ( 0.4 )

Balance at March 31, 2025 $ ( 385.3 ) $ ( 541.6 ) $ ( 29.9 ) $ ( 229.2 ) $ ( 1,186.0 )

Nine Months Ended

March 31, 2024

Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive (Loss)/Income

Balance at September 30, 2025 $ ( 305.3 ) $ ( 172.7 ) $ ( 26.6 ) $ ( 226.1 ) $ ( 730.7 )

Three Months Ended

September 30, 2024

Currency Translation Adjustment Net Gains/Losses on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive Income/(Loss)

Balance at June 30, 2024 $ ( 378.8 ) $ ( 1,178.0 ) $ ( 20.0 ) $ ( 231.5 ) $ ( 1,808.3 )

3 unchanged sentences

Tax effect — — ( 0.3 ) ( 0.3 ) ( 0.6 )

Balance at March 31, 2024 $ ( 368.9 ) $ ( 1,228.4 ) $ ( 20.8 ) $ ( 233.8 ) $ ( 1,851.9 )

Balance at September 30, 2024 $ ( 329.6 ) $ ( 511.3 ) $ ( 28.6 ) $ ( 230.7 ) $ ( 1,100.2 )

(A) Reclassification adjustments out of AOCI are included within Other income, net, on the Statements of Consolidated Earnings.

(B) Reclassification adjustments out of AOCI are included in net pension income (see Note 12).

(B) Reclassification adjustments out of AOCI are included in Net pension (income)/expense (see Note 12).

(C) Reclassification adjustments out of AOCI are included in Interest expense on the Statements of Consolidated Earnings (see Note 11).

2 unchanged sentences

Employer Services and PEO Services.

The primary components of the “Other” segment are certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, costs related to transformation, severance costs, non-recurring gains and losses, the elimination of intercompany transactions, interest expense and corporate interest income.

Certain revenues and expenses are charged to the reportable segments at a standard rate for management reasons.

Other costs are recorded based on management responsibility.

Segment Results:

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

Employer Services $ 3,767.9 $ 3,590.7 $ 10,417.4 $ 9,762.3

PEO Services 1,788.5 1,665.6 5,026.3 4,681.2

Other ( 3.4 ) ( 2.5 ) ( 9.6 ) ( 9.4 )

$ 5,553.0 $ 5,253.8 $ 15,434.1 $ 14,434.1

Earnings before Income Taxes

Three Months Ended Nine Months Ended

March 31, March 31,

2025 2024 2025 2024

The Company's Chief Operating Decision Maker ("CODM") is the Chief Executive Officer.

For each reportable segment, the CODM uses earnings before income taxes, including plan-to-actual and forecast-to-actual results, to assess segment performance and allocate resources (including personnel and capital resources) amongst its strategic business units.

The CODM does not review assets at the reportable segment level, hence segment disclosure relating to total assets has not been provided.

The following tables present the Company's revenues, significant segment expenses, and earnings before income taxes by reportable segment:

Three Months Ended September 30, 2025 Employer Services PEO Services Total

Revenues from external customers $ 3,203.5 $ 1,684.9 $ 4,888.4

Interest on funds held for clients 284.2 2.6 286.8

Intercompany revenues 3.5 — 3.5

Total segment revenues 3,491.2 1,687.5 5,178.7

Reconciliation of revenues:

Intercompany eliminations ( 3.5 )

Total consolidated revenues $ 5,175.2

Less segment expenses:

Selling and marketing 552.4 91.2

Zero-margin benefits pass-through costs — 1,131.0

Worker's compensation coverage and state unemployment taxes — 134.9

Other segment expenses (b) 1,710.0 111.6

Total segment earnings before income taxes 1,228.8 218.8 1,447.6

Reconciliation of earnings before income taxes:

Other (c) ( 140.1 )

Total consolidated earnings before income taxes $ 1,307.5

Three Months Ended September 30, 2024 Employer Services PEO Services Total

Revenues from external customers $ 3,007.2 $ 1,572.2 $ 4,579.4

Interest on funds held for clients 251.0 2.3 253.3

Intercompany revenues 2.8 — 2.8

Total segment revenues 3,261.0 1,574.5 4,835.5

Reconciliation of revenues:

Intercompany eliminations ( 2.8 )

Total consolidated revenues $ 4,832.7

Less segment expenses:

Selling and marketing 505.3 81.1

Zero-margin benefits pass-through costs — 1,049.2

Worker's compensation coverage and state unemployment taxes — 124.3

Other segment expenses (b) 1,591.4 94.3

Total segment earnings before income taxes 1,164.3 225.6 1,389.9

Reconciliation of earnings before income taxes:

Other (c) ( 153.7 )

Total consolidated earnings before income taxes $ 1,236.2

(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

Intercompany expenses are included in the amounts shown.

(b) Other segment expenses for both reportable segments include operating, research and development, depreciation and amortization, and other general and administrative expenses.

(c) Other represents certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, legal settlements, severance costs, non-recurring gains and losses, the elimination of intercompany transactions, and interest income and expense.

The following table presents the Company's depreciation and amortization included in earnings before income taxes for each reportable segment:

Three Months Ended

September 30,

Employer Services $ 131.1 $ 120.5

1 unchanged sentence

Other 14.9 16.4

$ 1,621.9 $ 1,546.3 $ 4,119.4 $ 3,783.0

Total depreciation and amortization $ 146.7 $ 138.6

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements