What changed in this filing

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Item 1. Financial Statements

2026-04-30 compared with 2026-01-29 · 119 added, 117 removed, 666 unchanged (26% of the section changed)

4 unchanged sentences

(In millions, except per share amounts)

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2026 2025 2026 2025

20 unchanged sentences

Diluted weighted average shares outstanding 402.5 408.5 404.5 409.1

(A) Professional Employer Organization (“PEO”) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $ 20,546.9 million and $ 19,420.8 million for the three months ended December 31, 2025 and 2024, respectively, and $ 39,081.3 million and $ 36,614.4 million for the six months ended December 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 $ 21,484.7 million and $ 20,293.3 million for the three months ended March 31, 2026 and 2025, respectively, and $ 60,566.0 million and $ 56,907.7 million for the nine months ended March 31, 2026 and 2025, respectively.

See notes to the Consolidated Financial Statements.

3 unchanged sentences

(In millions)

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2026 2025 2026 2025

19 unchanged sentences

(In millions, except per share amounts)

December 31, June 30,

March 31, June 30,

Current assets:

40 unchanged sentences

authorized, 1,000.0 shares;

issued, 638.7 shares at December 31, 2025 and June 30, 2025;

outstanding, 403.0 and 405.3 shares at December 31, 2025 and June 30, 2025, respectively

issued, 638.7 shares at March 31, 2026 and June 30, 2025;

outstanding, 400.6 and 405.3 shares at March 31, 2026 and June 30, 2025, respectively

Capital in excess of par value 3,012.7 2,788.3

1 unchanged sentence

Treasury stock - at cost:

235.7 and 233.4 shares at December 31, 2025 and June 30, 2025, respectively

238.1 and 233.4 shares at March 31, 2026 and June 30, 2025, respectively

( 22,541.5 ) ( 21,021.4 )

2 unchanged sentences

Total liabilities and stockholders’ equity $ 64,484.2 $ 53,369.3

(A ) As of December 31, 2025, $ 45.7 million of short-term marketable securities and $ 0.1 million of cash and cash equivalents 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).

(A ) 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)

Six Months Ended

Nine Months Ended

Cash Flows from Operating Activities:

10 unchanged sentences

Changes in operating assets and liabilities:

Decrease/(increase) in accounts receivable 145.9 ( 94.7 )

Increase in accounts receivable ( 33.4 ) ( 138.7 )

Increase in deferred contract costs ( 892.3 ) ( 890.8 )

1 unchanged sentence

(Decrease)/increase in accounts payable ( 33.0 ) 42.0

Decrease in accrued expenses and other liabilities ( 629.3 ) ( 110.5 )

Increase/(decrease) in accrued expenses and other liabilities 210.1 ( 20.9 )

Net cash flows provided by operating activities 4,013.2 3,500.5

10 unchanged sentences

Net increase in client funds obligations 15,531.2 634.4

Net cash distributed from the Internal Revenue Service ( 1.2 ) ( 487.6 )

Net cash (distributed)/received from the Internal Revenue Service ( 6.8 ) ( 549.2 )

Payments of debt ( 0.8 ) ( 0.9 )

6 unchanged sentences

Net (payments)/proceeds related to commercial paper ( 4,769.5 ) —

Net cash flows provided by financing activities 29,342.6 7,482.5

Net cash flows provided by/(used in) financing activities 7,299.6 ( 1,916.4 )

Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents ( 13.7 ) ( 12.7 )

53 unchanged sentences

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

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

Types of Revenues 2026 2025 2026 2025

5 unchanged sentences

Total Revenues $ 5,939.2 $ 5,553.0 $ 16,473.6 $ 15,434.1

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

Reconciliation of disaggregated revenue to our reportable segments for the three months ended March 31, 2026:

Types of Revenues Employer Services PEO Other Total

5 unchanged sentences

Total Segment Revenues $ 4,036.1 $ 1,906.0 $ ( 2.9 ) $ 5,939.2

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

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

Types of Revenues Employer Services PEO Other Total

5 unchanged sentences

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

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

Reconciliation of disaggregated revenue to our reportable segments for the nine months ended March 31, 2026:

Types of Revenues Employer Services PEO Other Total

5 unchanged sentences

Total Segment Revenues $ 11,134.6 $ 5,348.7 $ ( 9.7 ) $ 16,473.6

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

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

Types of Revenues Employer Services PEO Other Total

8 unchanged sentences

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 six months ended December 31, 2025 were as follows:

Changes in deferred revenues related to set up fees for the nine months ended March 31, 2026 were as follows:

Contract Liability

3 unchanged sentences

Currency translation adjustments 1.0

Contract liability, December 31, 2025 $ 514.6

Contract liability, March 31, 2026 $ 523.1

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.

32 unchanged sentences

Shares Diluted

Three Months Ended December 31, 2025

Three Months Ended March 31, 2026

Net earnings $ 1,359.8 $ 1,359.8

1 unchanged sentence

EPS $ 3.39 $ 3.38

Three Months Ended December 31, 2024

Three Months Ended March 31, 2025

Net earnings $ 1,249.5 $ 1,249.5

1 unchanged sentence

EPS $ 3.07 $ 3.06

Six Months Ended December 31, 2025

Nine Months Ended March 31, 2026

Net earnings $ 3,434.9 $ 3,434.9

1 unchanged sentence

EPS $ 8.51 $ 8.49

Six Months Ended December 31, 2024

Nine Months Ended March 31, 2025

Net earnings $ 3,169.0 $ 3,169.0

2 unchanged sentences

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

For the three and six months ended December 31, 2025, there were 0.6 million and 0.4 million shares excluded from the calculation of diluted EPS, respectively, because their inclusion would have been anti-dilutive.

For the three and six months ended December 31, 2024, there were no shares excluded from the calculation of diluted EPS.

For the three and nine months ended March 31, 2026, there were 0.6 million shares excluded from the calculation of diluted EPS because their inclusion would have been anti-dilutive.

For the three and nine months ended March 31, 2025, there were no shares excluded from the calculation of diluted EPS.

Other (Income)/Expense, Net

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2026 2025 2026 2025

6 unchanged sentences

Corporate Investments and Funds Held for Clients

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

December 31, 2025

Corporate investments and funds held for clients at March 31, 2026 and June 30, 2025 were as follows:

March 31, 2026

Losses Fair Market Value (A)

12 unchanged sentences

Total corporate investments and funds held for clients $ 50,002.9 $ 175.8 $ ( 537.2 ) $ 49,641.5

(A) Included within available-for-sale securities are corporate investments with fair values of $ 45.7 million and funds held for clients with fair values of $ 36,273.1 million.

(A) Included within available-for-sale securities are funds held for clients with fair values of $ 37,043.6 million.

There are no corporate investments included within available-for-sale securities at March 31, 2026.

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

16 unchanged sentences

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

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.

10-K for fiscal 2025.

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 December 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 December 31, 2025, are as follows:

December 31, 2025

The Company had no available-for-sale securities included in Level 1 or Level 3 at March 31, 2026.

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, 2026, are as follows:

March 31, 2026

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

24 unchanged sentences

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

At December 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 January 2026 through December 2035.

At December 31, 2025, asset-backed securities include AAA-rated senior tranches of securities with predomi nantly prime collateral primarily comprised of fixed-rate auto loan, credit card, and device payment plan agreement receivables with fair values of $ 894.9 million, $ 644.3 million, and $ 313.7 million, respectively.

At March 31, 2026, 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 2026 through March 2036.

At March 31, 2026, 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 $ 913.1 million, $ 742.4 million, and $ 341.6 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 December 31, 2025 .

At December 31, 2025, U.S.

All collateral on such asset-backed securities has performed as expected through March 31, 2026 .

At March 31, 2026, 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 $ 657.2 million and $ 136.0 million, respectively.

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 July 2026 through December 2035.

At December 31, 2025, other securities primarily include AA-rated United Kingdom Gilt securities of $ 648.7 million, municipal bonds, diversified with a variety of issuers, with credit ratings of A and above with fair val ues of $ 549.9 million, commercial mortgage-backed securities of $ 387.0 million, and AAA-rated supranational bonds of $ 232.9 million.

At March 31, 2026, other securities primarily include AA-rated United Kingdom Gilt securities of $ 731.5 million, municipal bonds, diversified with a variety of issuers, with credit ratings of A and above with fair val ues of $ 529.1 million, commercial mortgage-backed securities of $ 347.4 million, and AAA-rated supranational bonds of $ 231.8 million.

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

December 31, June 30,

March 31, June 30,

Corporate investments:

4 unchanged sentences

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

December 31, June 30,

March 31, 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 $ 67,613.7 million and $ 31,343.3 million at December 31, 2025 and June 30, 2025, respectively.

The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totalin g $ 46,774.5 million and $ 31,343.3 million at March 31, 2026 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 December 31, 2025 and June 30, 2025, $ 61,953.0 million and $ 27,355.2 million, respectively, are held in the grantor trust.

Of the Company’s funds held for clients at March 31, 2026 and June 30, 2025, $ 40,731.9 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.

2 unchanged sentences

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 December 31, 2025.

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

All available-for-sale securities were rated as investment grade at March 31, 2026.

Expected maturities of available-for-sale securities at March 31, 2026 are as follows:

One year or less $ 6,561.4

9 unchanged sentences

The components of operating lease expense were as follows:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2026 2025 2026 2025

4 unchanged sentences

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

Six Months Ended

Nine Months Ended

Cash paid for operating lease liabilities $ 125.9 $ 95.4

1 unchanged sentence

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

December 31, June 30,

March 31, June 30,

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

1 unchanged sentence

Current operating lease liability $ 101.4 $ 100.8

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

Six months ending June 30, 2026 $ 62.6

As of March 31, 2026, maturities of operating lease liabilities are as follows:

Three months ending June 30, 2026 $ 28.0

Twelve months ending June 30, 2027 109.5

7 unchanged sentences

Goodwill and Intangible Assets, net

Changes in goodwill for the six months ended December 31, 2025 are as follows:

Changes in goodwill for the nine months ended March 31, 2026 are as follows:

Services Total

2 unchanged sentences

Currency translation adjustments ( 6.1 ) — ( 6.1 )

Balance at December 31, 2025 $ 3,289.4 $ 4.8 $ 3,294.2

Balance at March 31, 2026 $ 3,284.3 $ 4.8 $ 3,289.1

Components of intangible assets, net, are as follows:

December 31, June 30,

March 31, June 30,

Intangible assets:

12 unchanged sentences

The weighted average remaining useful life of the intangible assets is 6 years ( 6 years for software and software licenses, 5 years for customer contracts and lists, and 3 years for other intangibles).

Amortization of intangible assets was $ 95.8 million and $ 100.7 million for the three months ended December 31, 2025 and 2024, respectively, and $ 191.3 million and $ 189.7 million for the six months ended December 31, 2025 and 2024, respectively.

Amortization of intangible assets was $ 96.8 million and $ 96.3 million for the three months ended March 31, 2026 and 2025, respectively, and $ 288.0 million and $ 286.0 million for the nine months ended March 31, 2026 and 2025, respectively.

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

Six months ending June 30, 2026 $ 220.5

Three months ending June 30, 2026 $ 116.0

Twelve months ending June 30, 2027 $ 388.8

10 unchanged sentences

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 December 31, 2025 under the credit agreements.

The Company had no borrowings through March 31, 2026 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.

As of December 31, 2025 the company had no commercial paper outstanding.

As of March 31, 2026, the Company had no commercial paper outstanding.

As of June 30, 2025, the Company had $ 4.8 billion of commercial paper outstanding, which was repaid in early July 2025.

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

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2026 2025 2026 2025

4 unchanged sentences

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

As of December 31, 2025 and June 30, 2025, the Company had $ 45.8 million and $ 38.4 million of outstanding obligations related to reverse repurchase agreements, respectively.

As of March 31, 2026, the Company had no outstanding obligations related to reverse repurchase agreements.

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

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

1 unchanged sentence

Details of the reverse repurchase agreements are as follows:

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2026 2025 2026 2025

3 unchanged sentences

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

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

Debt instrument Effective Interest Rate December 31, 2025 June 30, 2025

The principal amounts and associated effective interest rates of the Notes and other debt as of March 31, 2026 and June 30, 2025, are as follows:

Debt instrument Effective Interest Rate March 31, 2026 June 30, 2025

Fixed-rate 1.700 % notes due May 15, 2028

11 unchanged sentences

Total long-term debt $ 3,977.3 $ 3,974.7

(a) - Current portion of long-term debt as of December 31, 2025 is included within accrued expenses and other current liabilities on the Consolidated Balance Sheets.

(a) - Current portion of long-term debt as of March 31, 2026 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 December 31, 2025, the fair value of the Notes, based on Level 2 inputs, was $ 3,860.7 million.

As of March 31, 2026, the fair value of the Notes, based on Level 2 inputs, was $ 3,821.8 million.

8 unchanged sentences

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

The Company repurchased 1.9 million and 0.9 million shares in the three months ended December 31, 2025 and 2024, respectively, and repurchased 3.2 million and 2.4 million shares in the six months ended December 31, 2025 and 2024, respectively .

The Company repurchased 2.6 million and 1.0 million shares in the three months ended March 31, 2026 and 2025, respectively, and repurchased 5.7 million and 3.4 million shares in the nine months ended March 31, 2026 and 2025, 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 six months ended December 31, 2025 and 2024, respectively:

Three Months Ended Six Months Ended

December 31, December 31,

The following table represents pre-tax stock-based compensation expense for the three and nine months ended March 31, 2026 and 2025, respectively:

Three Months Ended Nine Months Ended

March 31, March 31,

2026 2025 2026 2025

5 unchanged sentences

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

Three Months Ended Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2026 2025 2026 2025

4 unchanged sentences

Net pension (income)/expense $ ( 3.9 ) $ ( 5.0 ) $ ( 11.6 ) $ ( 14.8 )

The effective tax rate for the three months ended December 31, 2025 and 2024 was 23.2 % and 23.6 %, respectively.

The decrease in the effective tax rate is primarily due to lower reserves for uncertain tax positions and a benefit for adjustments to prior year tax liabilities partially offset by a lower excess tax benefit on stock-based compensation in the three months ended December 31, 2025.

The effective tax rate for the six months ended December 31, 2025 and 2024 was 22.9 % and 23.1 %, respectively.

The decrease in the effective tax rate is primarily due to lower reserves for uncertain tax positions partially offset by the cost of an intercompany transfer of certain assets and a lower excess tax benefit on stock-based compensation in the six months ended December 31, 2025.

The effective tax rate for the three months ended March 31, 2026 and 2025 was 23.7 % and 23.0 %, respectively.

The increase in the effective tax rate is primarily due to an increase in uncertain tax positions and a lower excess tax benefit on stock-based compensation in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.

The effective tax rate for the nine months ended March 31, 2026 and 2025 was 23.2 % and 23.1 %, respectively.

The increase in the effective tax rate is primarily due to a lower excess tax benefit on stock-based compensation offset by a decrease in uncertain tax positions for the nine months ended March 31, 2026 as compared to the nine months ended March 31, 2025.

Commitments and Contingencies

As of December 31, 2025, the Company has purchase commitments of approximately $ 2,332.5 million, including obligations related to software license agreements, third-party software services and purchase and maintenance agreements on our software, equipment, and other assets, of which $ 194.8 million relates to the six months ending June 30, 2026, $ 1,032.7 million relates to the years ending June 30, 2027 through 2028, $ 987.0 million relates to the years ending June 30, 2029 through 2031, and the remaining relates to fiscal years thereafter.

As of March 31, 2026, the Company has purchase commitments of approximately $ 2,226.8 million, including obligations related to software license agreements, third-party software services and purchase and maintenance agreements on our software, equipment, and other assets, of which $ 67.9 million relates to the three months ending June 30, 2026, $ 1,042.7 million relates to the years ending June 30, 2027 through 2028, $ 998.1 million relates to the years ending June 30, 2029 through 2031, and the remaining relates to fiscal years thereafter.

In May 2020, a putative class action complaint was filed against ADP, TotalSource and related defendants in the U.S.

1 unchanged sentence

The complaint asserts violations of the Employee Retirement Income Security Act of 1974 (“ERISA”) in connection with the ADP TotalSource Retirement Savings Plan’s fiduciary administrative and investment decision-making.

The complaint seeks statutory and other unspecified monetary damages, injunctive relief and attorney’s fees.

The complaint seeks unspecified monetary relief, injunctive relief and attorney’s fees.

The Company is unable to estimate any reasonably possible loss, or range of loss, with respect to this matter.

10 unchanged sentences

Three Months Ended

December 31, 2025

March 31, 2026

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

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

Balance at December 31, 2025 $ 63.9 $ 2,936.8 $ 25,992.6 $ ( 21,960.6 ) $ ( 639.7 ) $ 6,393.0

Net earnings — — 1,359.8 — — 1,359.8

6 unchanged sentences

— — ( 684.3 ) — — ( 684.3 )

Balance at December 31, 2025 $ 63.9 $ 2,936.8 $ 25,992.6 $ ( 21,960.6 ) $ ( 639.7 ) $ 6,393.0

Balance at March 31, 2026 $ 63.9 $ 3,012.7 $ 26,668.1 $ ( 22,541.5 ) $ ( 853.1 ) $ 6,350.1

Three Months Ended

December 31, 2024

March 31, 2025

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

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

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

6 unchanged sentences

— — ( 628.5 ) — — ( 628.5 )

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

Six Months Ended

December 31, 2025

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, 2026

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

8 unchanged sentences

— — ( 2,007.4 ) — — ( 2,007.4 )

Balance at December 31, 2025 $ 63.9 $ 2,936.8 $ 25,992.6 $ ( 21,960.6 ) $ ( 639.7 ) $ 6,393.0

Six Months Ended

December 31, 2024

Balance at March 31, 2026 $ 63.9 $ 3,012.7 $ 26,668.1 $ ( 22,541.5 ) $ ( 853.1 ) $ 6,350.1

Nine Months Ended

March 31, 2025

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

8 unchanged sentences

— — ( 1,834.6 ) — — ( 1,834.6 )

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

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

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

1 unchanged sentence

Three Months Ended

December 31, 2025

March 31, 2026

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

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

Balance at December 31, 2025 $ ( 301.4 ) $ ( 87.6 ) $ ( 25.4 ) $ ( 225.3 ) $ ( 639.7 )

Other comprehensive income/(loss) before reclassification adjustments ( 16.1 ) ( 255.9 ) — — ( 272.0 )

2 unchanged sentences

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

Balance at December 31, 2025 $ ( 301.4 ) $ ( 87.6 ) $ ( 25.4 ) $ ( 225.3 ) $ ( 639.7 )

Balance at March 31, 2026 $ ( 317.5 ) $ ( 287.0 ) $ ( 24.3 ) $ ( 224.3 ) $ ( 853.1 )

Three Months Ended

December 31, 2024

March 31, 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 September 30, 2024 $ ( 329.6 ) $ ( 511.3 ) $ ( 28.6 ) $ ( 230.7 ) $ ( 1,100.2 )

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

2 unchanged sentences

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

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

Six Months Ended

December 31, 2025

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

Nine Months Ended

March 31, 2026

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

4 unchanged sentences

Tax effect — 0.7 ( 1.1 ) ( 0.8 ) ( 1.2 )

Balance at December 31, 2025 $ ( 301.4 ) $ ( 87.6 ) $ ( 25.4 ) $ ( 225.3 ) $ ( 639.7 )

Six Months Ended

December 31, 2024

Balance at March 31, 2026 $ ( 317.5 ) $ ( 287.0 ) $ ( 24.3 ) $ ( 224.3 ) $ ( 853.1 )

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 Income/(Loss)

4 unchanged sentences

Tax effect — ( 0.1 ) ( 1.0 ) ( 0.7 ) ( 1.8 )

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

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

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

(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).

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

Interim Financial Data by Segment

7 unchanged sentences

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

Three Months Ended December 31, 2025 Employer Services PEO Services Total

Three Months Ended March 31, 2026 Employer Services PEO Services Total

Revenues from external customers $ 3,633.0 $ 1,902.3 $ 5,535.3

14 unchanged sentences

Total consolidated earnings before income taxes $ 1,781.8

Three Months Ended December 31, 2024 Employer Services PEO Services Total

Three Months Ended March 31, 2025 Employer Services PEO Services Total

Revenues from external customers $ 3,412.6 $ 1,785.2 $ 5,197.8

14 unchanged sentences

Total consolidated earnings before income taxes $ 1,621.9

Six Months Ended December 31, 2025 Employer Services PEO Services Total

Nine Months Ended March 31, 2026 Employer Services PEO Services Total

Revenues from external customers $ 10,134.7 $ 5,339.5 $ 15,474.2

14 unchanged sentences

Total consolidated earnings before income taxes $ 4,472.5

Six Months Ended December 31, 2024 Employer Services PEO Services Total

Nine Months Ended March 31, 2025 Employer Services PEO Services Total

Revenues from external customers $ 9,534.6 $ 5,018.2 $ 14,552.8

17 unchanged sentences

(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.

(c) Other represents certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, legal settlements, company-wide severance initiatives, 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 Six Months Ended

December 31, December 31,

Three Months Ended Nine Months Ended

March 31, March 31,

2026 2025 2026 2025

4 unchanged sentences

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