What changed in this filing

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Item 1. Business

2026-08-05 compared with 2025-08-06 · 119 added, 168 removed, 192 unchanged (60% of the section changed)

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help clients focus on their business by solving their payroll challenges.

In the more than 75 years since, we have shaped the world of work with innovation and expertise, transforming Human Capital Management (“HCM”) from an administrative challenge to a strategic business advantage.

We continuously aim to solve complex business challenges for our clients and their workers, helping them work smarter today so they can have more success tomorrow.

A lways D esigning for P eople means ADP focuses on people, leveraging our unparalleled data insights and innovative technology to elevate human potential.

In the 77 years since, we have led the Human Capital Management (“HCM”) industry in innovation.

We were the first in HCM to deliver automation, move to the cloud, provide a mobile app, and create an online marketplace.

Today, we continue that legacy with artificial intelligence (“AI”), building AI into the very core of how we orchestrate, govern and execute HR and pay processes for real-world outcomes.

As AI adds new layers of complexity to managing the workforce infrastructure that makes business possible, our clients need a partner they can trust.

As the trusted, service-driven, and AI-enabled partner for HCM, we deliver services powered by deep domain expertise, workforce data, and global scale to help organizations manage their most critical workforce functions with precision, compliance and confidence.

Today, we are a global leader in HR and payroll solutions, serving over 1.1 million clients and paying over 42 million workers in over 140 countries and territories.

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ADP’s Mission

Our mission is to help businesses make meaningful change in the world of work by providing insightful HCM solutions that meet the evolving needs of our clients and their workers.

As new technologies and shifting workplace dynamics continuously reshape the way people work, we support every HCM need of our clients whether that client is a small, local business or a large, global enterprise operating around the world.

From HR, payroll, time and benefits to HR outsourcing, talent, compliance and retirement, our solutions span the entire employee experience from hire to retire.

Our leading technology and commitment to service excellence are at the core of our relationship with each one of our clients, which span over 140 countries and territories.

We are always designing better ways to work through industry leading products, premium services and exceptional experiences that enable people to reach their full potential all around the world.

Our mission is to help our clients manage the workforce infrastructure that makes business possible, whether they're a Fortune 500 ® company or a small local business.

AI is reshaping how work gets done at the task level, but that does not eliminate the need to manage it.

In fact, AI has added new layers of complexity for business and ADP is purpose-built for this challenge.

ADP brings 77 years of workforce expertise and global scale to payroll, compliance, and workforce management, and these advantages set us apart.

We support every HCM need of our clients from HR, payroll, time and benefits to HR outsourcing, talent, compliance and retirement, across the entire employee experience.

Our industry-leading data, global scale and reach, and deep domain expertise shape our trusted service model and are at the core of our relationship with each one of our clients, which span over 140 countries and territories.

Together, these strengths allow us to solve our clients' challenges with HCM solutions that reduce friction, deliver smart insights to drive decisions, and ultimately empower people at work without replacing their human judgment.

ADP’s Strategy

With a large and growing addressable market, we are focused on our core growth areas and further enhancing our market position by executing on our three strategic priorities:

With a large and growing addressable market, we are focused on our core growth areas and further enhancing our market position by executing against our three strategic priorities rooted in our structural advantages:

• Lead with Best-in-Class HCM Technology.

We design and develop world-class HCM platforms that simplify work and utilize enabling technologies such as artificial intelligence (“AI”) and modern cloud architecture.

We aim to solve the needs of our clients and their workers today by making HCM transactions compliant and effortless, while anticipating their needs of tomorrow by incorporating valuable data insights and guidance into our solutions to help them better understand their workforce and position them to make better decisions.

We design and develop world-class, AI-enabled HCM platforms that simplify work and help organizations manage their most critical workforce functions with precision, compliance and confidence in the AI era.

Unlike generalized AI tools, our AI is built into the very core of how we orchestrate, govern, and execute HR and pay processes for real-world outcomes.

Our global data platform, named “2026 Data Solution of the Year for HR” in the Data Breakthrough Awards, is the foundation of the advantage we bring to our clients.

Spanning over 1.1 million clients and 42 million workers across roles, industries and geographies, we have the industry's largest workforce dataset.

In the U.S., we pay one in six workers and moved $3.5 trillion in fiscal year 2026, giving us unique insights into the workforce and its emerging trends.

AI is only as good as the data it is trained on, and this advantage compounds over time.

Every ADP Assist AI Agent is grounded in ADP's institutional knowledge.

The result is persona-based agents tailored for employees, managers, HR and payroll practitioners, all informed by ADP's data advantage.

Our approach to AI agents earned ADP recognition as one of Fast Company's 2026 “Most Innovative Companies,” with ADP earning the number one spot among HR companies for its purpose-built approach to designing AI tools that solve real client challenges and empower people at work.

• Provide Unmatched Expertise and Outsourcing Solutions.

Our products, services, and solutions are built on 77 years of hands-on experience with HR processes, workflows, exceptions and regulatory nuance.

Our clients look to us as a source of expertise to understand key HR trends and best practices, employment and related legislation and regulations, and to offer thoughtful strategies to utilize HCM technology to achieve their business objectives and support their workforce.

Many of our clients also ask us to take on responsibility for a portion or all of their HCM workflows via one of our Human Resources Outsourcing (“HRO”) solutions.

We continue to build on our deep expertise and make it readily available to our clients through a variety of channels, ranging from traditional call and chat options to self-guided and AI-powered options.

We will continue to leverage our significant data insights and investments in AI and other technologies to further enable and effectively apply our decades of knowledge and experience to help our clients and their workers navigate the ever-changing world of work.

ADP pairs AI-driven efficiency with expert human judgment.

Our clients have access to real experts for unique and unprecedented situations and we are designed to execute with precision when it matters most.

• Benefit our Clients with Our Global Scale.

Our clients benefit from our unmatched global footprint and scale in the HCM industry.

We will continue to build on these strengths to further improve our client experience, and to add to our global footprint to further meet our clients where they choose to do business and address their needs for a distributed and flexible workforce.

We see meaningful opportunities to leverage our strength in global payroll and expand our HR and workforce management

solutions to support our global and multinational clients.

We continue to build more relationships with partners, such as through the ADP Marketplace, in order to provide clients with seamless integrations and customizations that simplify their HR processes and best address their unique needs.

And we intend to grow our sales organization and continue to invest in best-in-class sales technology to not only optimize the purchase experience but to also empower our sellers to provide the deep expertise and insights our clients require to ensure they have the right HCM solutions to help them achieve their objectives and make a meaningful impact for their employees.

Innovation at ADP

Innovation is in our DNA.

For over 75 years, we have proven that actively listening and responding to what clients and their employees need and want keeps the world of work progressing forward.

As a founder in the industry, we pioneered HCM automation, HCM in the cloud, mobile HCM and a digital HCM marketplace, laying the groundwork and streamlining our infrastructure to innovate at a faster pace.

This spirit of innovation remains a steady guide as we continue to listen and respond to emerging needs.

As technologies like AI, machine learning (“ML”) and generative AI change how work happens, we remain focused on providing our clients and associates with HCM technology that is easy to use, powered with smart insights and personalized to support a human-centric experience.

To bring these solutions to market, we pursue multiple paths to innovation.

From leveraging our unique data to provide differentiated insights to collaborating with, or investing in, organizations with complementary products to purchasing solutions that add to our strong foundation, each of these paths helps ADP sustain a culture focused on continuous innovation.

Strategically infusing AI

The AI landscape is evolving quickly.

As we move from early automation and predictive analytics to AI-enabled workflows, agentic AI is the future of innovation in the HCM space.

Our AI strategy is to deliver AI agents for all

major HCM roles that our clients have.

Our clients have employees performing different roles such as payroll, HR, benefits, compensation, and recruiting.

Our goal is to deliver AI agents that continue to automate tedious, time heavy tasks and deliver value to these individuals to do more strategic activities.

Similarly, we intend to deliver AI role-based agents to our internal associates such as sales, software engineering, testing, product management, service, and implementation.

To advance these efforts, we continue to roll out ADP Assist, our award-winning cross-platform solution powered by generative AI that transforms data into credible and actionable insights.

ADP Assist offers smart, user-centric solutions through a conversational interface that touches every aspect of HR – payroll, time, talent, benefits, recruitment, analytics, reporting, and compliance.

ADP Assist validates payroll information, checking for payroll anomalies and using generative AI to identify and help resolve missing tax registrations and answer questions by drawing on ADP’s large, up-to-date dataset of compliance information.

ADP Assist also uses generative AI to simplify report creation, helping HR practitioners and leaders access internal, national, and global workforce data to analyze compensation, turnover, candidate profile relevancy, and talent market insights.

A 2024 AI Breakthrough Award winner, the solution was also recognized in Business Intelligence Group’s 2025 BIG Innovation Awards and 2025 Artificial Intelligence Excellence Awards for driving innovation and possibilities in AI.

Along with transforming our solutions, we firmly believe AI and generative AI enhance our operations and enable us to elevate the end-to-end client experience.

To lean into our service expertise, we continue to extend generative AI capabilities to a broader portion of our service and implementation associates to deliver an even better client experience.

We also continue to explore generative AI capabilities to further empower our sellers to be more productive.

In addition, we extended AI tools to all of our product developers for coding, testing, and documentation.

Data is our differentiator

To harness the power of AI, data is critical – and it’s the foundation of the advantage we bring to our clients.

Data is at the core of our products and solutions, informing and driving our approach to innovation and new technology.

The global scale and scope of our client base provide us the industry’s largest and deepest HCM dataset with over 1.1 million clients spanning over 140 countries and territories and 42 million workers globally.

Our broad and granular data set positions us well to deliver smarter and more tailored HCM agents that we believe will be truly differentiated in the market.

Additionally, combining our vast client and service data with client outcomes gives us a deeper understanding of clients’ needs and goals.

AI represents the next frontier, and our industry-leading data set married to our best-in-class distribution offers

ADP a distinct, competitive advantage.

AI and ML drive many of the key features of ADP’s data products, including ADP DataCloud, our award-winning people analytics solution.

ADP DataCloud analyzes aggregated, anonymized and timely HCM and compensation data from more than one million organizations across the U.S., powering solutions that provide clients with in-depth workforce and business insights that enable critical HR decisions.

Analytics enhanced by ADP Assist leverages generative AI to deliver answers to analytics questions across key practice areas including benefits, HR, payroll, recruitment and time, helping to remove user friction.

Scalable, Global HCM Offerings

We also continue to advance our next-gen platforms, launching ADP Lyric HCM in September 2024.

Building on our position as a leader in global pay, we designed Lyric to be as dynamic as the world of work.

The unified, global HCM solution is designed for adaptability, providing our clients with the flexibility they need to address today’s and tomorrow’s workplace challenges, and to personalize the experience based on their needs.

The solution was named “Data Solution of the Year for Human Resources” in the 2025 Data Breakthrough Awards.

To expand our global offering and enhance our enterprise solution suite, in October 2024 ADP acquired WorkForce Software, a premier workforce management solutions provider that specializes in supporting large, global enterprises.

WorkForce Software’s solutions can adapt to the dynamic needs of today’s employers, creating resiliency, driving performance and making managing a global workforce easy.

This acquisition expands our current array of global time and attendance, absence management and scheduling tools and will drive workforce management innovation to help meet the future needs of businesses.

In addition, ADP acquired Procesamiento Externo de Información, S.C.

(PEI) in February 2025, a provider of local payroll, HCM expertise, and technology solutions for Mexican businesses, strengthening ADP’s capabilities in local and global payroll and HR.

Sustaining a culture of responsible AI

In harnessing the power of data through AI and ML, ADP

recognizes the importance of accountability, transparency, privacy, explainability and governance, and in furtherance of those goals has established an active AI & Data Ethics Committee, comprised of both industry leaders and ADP experts, which advises on emerging industry trends and concerns and provides guidance with respect to compliance with the principles that ADP should follow while developing products, systems and applications that involve AI, ML and data.

As we continue to explore the potential that new technologies like generative AI can provide, we understand the great responsibility we have to approach these innovations in a way that is ethical, secure, and compliant for our business and the clients and workers we serve around the world.

This led to our establishment of an interdisciplinary working group across ADP to determine governance for use cases and adoption of a set of principles and processes to govern the use of these newer technologies, including operational monitoring of recommendations made by AI and ML technologies.

Creating a customized HR ecosystem

To meet clients’ shifting needs, we also collaborate with partners through solutions like ADP Marketplace, one of the largest e-commerce platforms for HR solutions in the industry.

This innovative marketplace empowers our clients to connect and share data seamlessly across their HR systems, offering access to over 800 partner solutions - from recruiting and onboarding to compliance and learning management.

With the introduction of AI technology, including our generative AI smart search tool, clients can quickly discover and evaluate partner solutions using natural language, enabling clients to tailor their HCM ecosystem with integrated solutions that best fit their unique needs.

Additionally, ADP API Central offers secure APIs and tools and resources for custom integrations to simplify and automate business processes.

This solution was named

“New Product of the Year” in Business Intelligence Group’s 2024 BIG Awards for Business.

Accelerating innovation

Reflecting our commitment to innovation, ADP’s corporate venture capital arm and innovation lab, ADP Ventures, is focused on enhancing and strengthening ADP’s core business, creating offerings in new adjacent segments and geographies, and developing new assets to monetize markets and segments beyond HCM.

As part of its strategy, ADP Ventures invests in and partners with early-stage and scaling tech startups that advance ADP’s innovation strategy.

ADP serves clients in over 140 countries and territories with 67,000 associates delivering solutions for our clients' global operations.

With direct integration to tens of thousands of government entities, tax authorities, and banking institutions, our global footprint provides a “final mile” ecosystem that is hard to replicate.

As AI accelerates regulatory fragmentation, our scale and compliance infrastructure become even more critical to our clients' success.

We continue to build on these strengths to further improve our client experience, and to add to our global footprint to meet our clients where they choose to do business.

We have strategically focused on delivering a single, unified, consistent and easy to navigate experience for our global and multinational clients, leaning into our strength in global payroll and expanding our HR and workforce management solutions.

We continue to build more relationships with best-in-class providers to give clients seamless integrations and customizations that simplify their HR processes and address their unique needs, whether through embedded payroll offerings or partner solutions available through the ADP Marketplace.

And we intend to continue to invest in our sales organization and best-in-class sales technology to not only optimize the purchase experience but to empower

our sellers to provide the deep expertise and insights our clients require to ensure they have the right HCM solutions to help them achieve their objectives and make a meaningful impact for their employees.

ADP's Commitment to Responsible AI

Clients have relied on ADP through decades of change and complexity.

In the AI era, our commitment to responsible AI reinforces ADP's position as the trusted partner for HCM.

ADP maintains strong governance through an active AI & Data Ethics Council, comprised of both industry leaders and ADP experts, which advises on emerging industry trends and concerns and provides guidance with respect to compliance with the principles that ADP should follow while developing products, systems and applications that involve AI, machine learning (“ML”) and data.

We additionally have an interdisciplinary working group across ADP that determines governance for use cases and the set of principles and processes that govern the use of these technologies, including operational monitoring of recommendations made by AI and ML technologies.

As we continue to introduce new AI tools, we aim to incorporate compliance, transparency and security into development from the start.

Reportable Segments

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These solutions address critical client needs and include:

Payroll Services, Benefits Administration, Talent Management, HR Management, Workforce Management, Compliance Services, Insurance Services and Retirement Services.

Payroll Services, Benefits Administration, Talent Management, Workforce Management Solutions, Compliance Solutions, Human Resources Management, Retirement Services and Insurance Services.

Professional Employer Organization .

Our PEO business, called ADP TotalSource ® , is our full-service PEO that offers expert guidance, user-friendly technology, comprehensive employee benefits, and a risk management, safety, and workers’ compensation program as part of a co-employment arrangement in which employees who work for a client (referred to as “worksite employees”) are co-employed by us and the client.

PRODUCTS AND SOLUTIONS

In order to serve the unique needs of our clients and their diverse types of businesses and workforce models, we provide a range of solutions that businesses of all types and sizes and across geographies can use to recruit, onboard, pay, manage, and retain their workforce.

We address these broad market needs with our cloud-based strategic platforms:

RUN Powered by ADP ® , serving over 940,000 small businesses;

ADP Workforce Now ® , serving over 90,000 mid-sized and large businesses;

and ADP Lyric HCM, serving large enterprise businesses.

All of these solutions can be combined with ADP SmartCompliance ® to address the increasingly broad and complex needs of employers.

Outside the United States, we address the needs of over 70,000 clients with premier global solutions consisting of in-country solutions and multinational offerings, including Lyric, ADP Global Payroll and ADP iHCM.

To help clients manage the workforce infrastructure that makes business possible, whether they’re a Fortune 500 company or a small local business, we provide a unified ecosystem of HCM solutions rooted in our industry-leading data and deep domain expertise.

Our strategic cloud-based platforms, scalable by company size and location, allow clients to recruit, onboard, pay, manage and retain their people in one single space with precision, compliance and confidence.

Our AI is built into the very core of how our platforms orchestrate, govern and execute HR and pay processes for real-world outcomes .

HCM Solutions

Integrated HCM Solutions.

Our premier suite of HCM products offers complete solutions that assist employers of all types and sizes in all stages of the employment cycle, from recruitment to retirement.

Our suite of HCM solutions are powered by our strategic, cloud-based, award-winning platforms, including:

• RUN Powered by ADP is an all-in-one platform designed specifically for small businesses to simplify payroll, HR, and compliance.

Our premier suite of HCM solutions support employers of all types and sizes across the entire employment cycle, from recruitment to retirement.

These solutions are powered by our award-winning data and AI capabilities, which are designed to reduce friction, surface actionable insights and support informed human judgment across all of our platforms, including:

• RUN Powered by ADP ® , serving over 980,000 small businesses, is an all-in-one platform designed specifically for small businesses to simplify payroll, HR, and compliance.

It combines easy-to-use technology with 24/7 real-person support from ADP’s team of payroll professionals.

By embedding automation and AI into routine tasks, RUN helps small businesses focus on running their operations with compliance, precision and confidence.

RUN also integrates with other ADP solutions, including workforce management, workers’ compensation, benefits, and retirement services.

• ADP Workforce Now is a flexible HCM solution used across mid-sized and large businesses in North America to manage their employees.

More businesses use ADP

Workforce Now in North America than any other HCM solution designed for both mid-sized and large businesses.

• ADP Workforce Now ® is a flexible HCM solution used by over 90,000 mid-sized and large businesses in North America to manage their employees.

More businesses use ADP Workforce Now in North America than any other HCM solution designed for both mid-sized and large businesses.

Workforce Now integrates payroll, HR, time, benefits and compliance on a single platform, enabling organizations to manage complex workforce requirements with confidence.

• ADP Lyric™ HCM is a global HCM for large enterprises, unifying HR management, payroll, workforce management, talent, and data analytics into a flexible, intelligent, and human-centric solution.

Businesses using Lyric also benefit from comprehensive end-to-end service support, with an emphasis on global compliance and expertise.

Businesses using Lyric also benefit from comprehensive end-to-end service support, with an emphasis on global compliance support and expertise.

Lyric is built for the way people actually work together, mirroring practically any structure of work groups, such as divisions, regions, or dynamic teams.

Lyric integrates generative AI technology with ADP’s unmatched dataset, helping to support decision-making, drive efficiency and personalize employee experiences based on attributes of role, geographic location, typical behaviors, and anticipated need.

Global Payroll .

We pay over 26 million (approximately 1 out of every 6) workers in the United States.

anticipated need, all while maintaining human oversight in high-stakes outcomes such as pay, compliance and workforce decisions.

Payroll Services .

We pay approximately 26 million (approximately 1 out of every 6) workers in the United States.

We offer flexible payroll services to employers of all sizes, including the preparation of employee paychecks, pay statements, supporting journals, summaries, and management reports.

Our payroll solutions are designed to deliver dependable execution at scale, supported by deep expertise and AI-enabled automation that helps reduce risk without removing human judgment and accountability.

We provide employers with a wide range of payroll options, including using mobile technology, connecting their major enterprise resource planning (“ERP”) applications with ADP’s payroll services or outsourcing their entire payroll process to us.

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ADP’s Talent Management solutions simplify and improve the talent acquisition, management and activation process, from recruitment to ongoing employee engagement and development.

Employers can outsource their internal recruitment function to ADP through ADP’s Recruitment Process Outsourcing services.

Employers can use our applicant tracking software to help manage the candidate hiring process and can outsource their internal recruitment function to ADP.

Employers can also receive employer brand activation services, management of candidate advertising, talent community building services, and recruiter training services, as well as career search support and outplacement for reductions in force.

Our solutions provide performance, learning, succession and compensation management tools that help employers align goals to outcomes, and enable managers to identify and mitigate potential retention risks.

Our talent activation solutions include StandOut ® powered by ADP, which provides team leaders with data and insights to drive employee engagement and leadership development, which in turn help drive employee performance.

Workforce Management.

ADP’s compensation management solutions expanded in 2025 with the acquisition of Pequity, which supports the complex compensation planning needs of mid-size, enterprise and multinational companies with flexible configurations, AI-enhanced insights, budgeting and scenario planning tools.

Our talent activation solutions provide team leaders with data and insights to drive employee engagement and leadership development, which in turn help drive employee performance.

Workforce Management Solutions.

ADP’s Workforce Management offers a range of solutions to over 160,000 employers of all sizes, including time and attendance, absence management and scheduling tools.

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We also offer data analytics and reporting tools that provide clients with insights, benchmarks and performance metrics so they can better manage their workforce.

In addition, industry-specific modules are available for labor forecasting, budgeting, activity and task management, grant and project tracking, and tips management.

These solutions offer industry specific features and are optimized for clients of all sizes from small businesses operating in one location to the world’s largest and most complex global organizations.

Solutions are available, and support compliance requirements, in over 100 countries.

Compliance Solutions.

ADP’s Compliance Solutions provides industry-leading expertise in payment compliance and employment-related tax matters that complement the payroll, HR and ERP systems of our clients.

ADP SmartCompliance ® leverages ADP's industry-leading data, global scale and deep domain expertise to help clients manage their most critical compliance work with precision and confidence.

As the complexity of payroll, tax and employment-related compliance grows in the AI era, the solution provides industry-leading expertise in payment compliance and employment-related tax matters that complement the payroll, HR and ERP systems of our clients.

In our fiscal year ended June 30, 2026, in the United States, we processed and delivered more than 79 million employee year-end tax statements and moved more than $3.5 trillion in client funds to our clients’ employees, tax authorities and other payees.

Our offerings within Compliance Solutions include employment tax services, W-2 management, business tax credits, I-9 management, employment verification, wage garnishment and Wisely by ADP, our paycard solution.

Our offerings within ADP SmartCompliance include employment tax services, W-2 management, business tax credits, ACA compliance, I-9 management, employment verification, offboarding, wage garnishment and payment solutions, which includes Wisely by ADP, our paycard offering.

Human Resources Management.

Commonly referred to as Human Resource Information Systems, ADP’s Human Resources Management Solutions provide employers with a single system of record to support the entry, validation, maintenance, and reporting of data required for effective HR management, including employee names, addresses, job types, salary grades, employment history, and educational background.

Insurance Services.

ADP’s Insurance Services business, in conjunction with our licensed insurance agency, Automatic Data Processing Insurance Agency, Inc., facilitates access in the United States to workers’ compensation and group health insurance for over 260,000 small and mid-sized clients through a variety of insurance carriers.

Our automated Pay-by-Pay® premium payment

program calculates and collects workers’ compensation premium payments each pay period, simplifying this task for employers.

Retirement Services.

ADP Retirement Services helps over 190,000 employers in the United States administer various types of retirement plans, such as traditional and Roth 401(k)s, profit sharing (including new comparability), SIMPLE and SEP IRAs, and executive deferred compensation plans.

ADP Retirement Services offers a full service 401(k) plan program which provides recordkeeping and administrative services, combined with an investment

platform offered through ADP Broker-Dealer, Inc.

that gives our clients’ employees access to a wide range of non-proprietary investment options and online tools to monitor the performance of their investments.

ADP Retirement Services helps over 210,000 employers in the United States administer various types of retirement plans, such as SIMPLE and SEP IRAs, starter 401(k)s, traditional 401(k) plans (including Pooled Employer Plans - PEPs), 403(b) plans, and non-qualified retirement plans.

ADP Retirement Services provides recordkeeping and administrative services, combined with an investment platform that gives our clients access to a wide range of non-proprietary investment options and online tools to easily manage their plan.

In addition, ADP Retirement Services offers investment management services to retirement plans through ADP Strategic Plan Services, LLC, an SEC registered investment adviser under the Investment Advisers Act of 1940.

ADP Retirement Services also offers trustee services through ADP Retirement Trust Services, LLC, a New Hampshire state-chartered affiliated trust company, as well as through a third party.

Insurance Services.

ADP’s Insurance Services business, in conjunction with our licensed insurance agency, Automatic Data Processing Insurance Agency, Inc., facilitates access in the United States to workers’ compensation and group health insurance for over 280,000 small and mid-sized clients through a variety of insurance carriers.

Our automated Pay-by-Pay® premium payment program calculates and collects workers’ compensation premium payments each pay period, simplifying this task for employers.

HRO Solutions

As a leader in the growing HR Outsourcing market, we partner with clients from small, mid-sized and large enterprise organizations, offering a full range of premium services and seamless technology for HR, benefits, payroll, and talent management.

We help organizations streamline processes, reduce the daily workload and reduce compliance risk while also gaining a partner to navigate HR challenges.

Whether a client chooses our PEO or HRO/Managed Services, we offer solutions tailored to a client’s specific needs and provide day-to-day expertise, guidance and tools, all personalized to meet their unique needs.

As a leader in the growing HR Outsourcing market, we partner with clients of all sizes from small local businesses to large enterprise organizations, to manage their most critical workforce functions including HR, benefits, payroll, and talent management.

With premium services and seamless technology, we help organizations streamline processes, reduce the daily workload and reduce compliance risk while serving as their trusted partner to navigate HR needs with precision, compliance and confidence.

Whether a client chooses our PEO or HRO/Managed Services, we offer solutions tailored to a client’s specific needs and provide day-to-day expertise, guidance and tools.

ADP’s HR Outsourcing solutions serve over three million client employees.

Professional Employer Organization.

ADP TotalSource is enabled by ADP Workforce Now and offers small and mid-sized businesses a comprehensive HR outsourcing solution through a co-employment model.

ADP TotalSource is enabled by the ADP Workforce Now technology and offers small and mid-sized businesses a comprehensive HR outsourcing solution through a co-employment model.

With a PEO, both ADP and the client have a co-employment relationship with the client’s employees.

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ADP Comprehensive Services.

ADP Comprehensive Services combines personalized, high-touch support with our market-leading ADP Workforce Now platform to offer a one-stop suite of managed services solutions that are tailored to the specific needs of businesses of all sizes.

Our committed team of professionals provides expertise, guidance, and tools across HR, talent management, payroll, and benefits administration through a combination of proven expertise, deep experience, and best practices.

ADP Comprehensive Services combines personalized, high-touch support with our market-leading ADP Workforce Now platform to offer a one-stop suite of managed services tailored to the specific needs of businesses of all sizes.

Our committed team of professionals delivers expertise, guidance, tools and administrative support across HR, talent management, payroll, and benefits administration grounded in experience and best practices.

We take the time to understand our clients’ businesses to offer the right strategic support, enabling a flexible partnership that can cover one, some, or all areas of their HR and payroll processes.

Our scalable solution is designed to act as an extension of our clients’ in-house resources, providing outsourced execution that effectively combines expertise, processes and technology.

Designed to be a scalable extension of our clients’ in-house resources, ADP Comprehensive Services provides outsourced execution that effectively combines expertise, processes and technology.

ADP Comprehensive Outsourcing Services (ADP COS).

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Global Solutions

Our premier global solutions consist of multi-country and local in-country solutions for employers of any type or size.

We partner with clients to help them navigate the most complex HR and payroll scenarios using tailored and scalable technology supported by our deep compliance expertise.

To help clients navigate the complexities of managing a global workforce, they need one partner they can trust to work where they work.

Serving over 70,000 clients with premier global solutions, we have taken a strategic approach to offer a unified global HCM experience, connecting global HR, pay and workforce management with built-in localization, automation and analytics to provide a consistent experience across countries.

Whether employers are managing people in multiple countries or looking for local in-country solutions, we partner with clients to help them navigate the most complex HR, workforce management and payroll scenarios using tailored and scalable technology supported by our deep compliance expertise.

ADP Global Payroll is a solution for multinational organizations of all sizes, empowering them to harmonize HCM strategies in over 140 countries and territories globally.

This improves visibility, control and operational efficiency, giving organizations the insight and confidence to adapt to changing local needs, while helping to drive overall organizational agility and engagement.

We also offer comprehensive, country-specific HCM solutions that combine innovative technology with deep local expertise.

By operating a flexible service model, we help clients manage various combinations of payroll services, HR management, time and attendance management, talent management and benefits management, depending on the country in which the solution is provided.

In addition to ADP Lyric HCM as a solution for global multinational organizations, we also offer comprehensive, country-specific HCM solutions that combine innovative technology with deep local expertise.

By operating a flexible service model, we help clients manage various combinations of payroll services, benefits administration, talent management, workforce management solutions, and HR management, depending on the country in which the solution is provided.

We pay over 16 million workers outside the United States with our in-country and multi-country solutions, such as ADP iHCM and ADP Global Payroll.

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Our configurable, automated time and attendance tools help global clients understand the work being performed and the resources being used, and help ensure the right people are in the right place at the right time.

Research and Development Expenditure

During the fiscal years ended June 30, 2026, 2025 and 2024, we invested approximately $1.405 billion, $1.388 billion, and $1.276 billion, respectively, in research and development.

These investments include expenses for activities such as the development of new products, maintenance expenses associated with our existing technologies, investments in generative and agentic AI, purchases of new software and software licenses, and additions to software resulting from business combinations.

MARKETS AND SALES

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In each market, we have both country-specific solutions and multi-country solutions, for employers of all sizes and complexities.

The major components of our offerings throughout these geographies are payroll, HR outsourcing and workforce management.

The major components of our offerings throughout these geographies are payroll services, HR outsourcing and workforce management solutions.

In addition, we offer wage and tax collection and/or remittance services in the United States, Canada, the United Kingdom, Australia, India, China, Hong Kong, Macau, Malaysia, and Taiwan.

Our PEO business offers services exclusively in the United States.

We market our solutions primarily through our direct sales force.

We also market HCM Solutions, Global Solutions and HRO Solutions through indirect sales channels, such as marketing relationships with certified public accountants and banks, among others.

Our PEO business offers services exclusively for employees located in the United States.

We market our solutions through our direct sales force, digital sales, and indirect sales channels, such as marketing relationships with certified public accountants and banks, among others.

None of our major business units has a single homogeneous client base or market.

While concentrations of clients exist in specific industries, no one client, industry or industry group is material to our overall

While concentrations of clients exist in specific industries, no one client, industry or industry group is material to our overall revenues.

We are a leader in each of our major service offerings and do not believe any of our major services or business units is subject to unique market risk.

The industries in which we operate are highly competitive.

We know of no reliable statistics by which we can determine the number of our competitors, but we believe that we are one of the largest providers of HCM solutions in the world.

The industries in which we operate are highly competitive and we are one of the largest providers of HCM solutions in the world.

HCM Solutions, Global Solutions and HRO Solutions (other than PEO) compete with other business outsourcing companies, companies providing ERP services, providers of cloud-based HCM solutions and financial institutions.

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and foreign laws and regulations that apply to them.

We have, and continue to enhance, compliance programs and policies to monitor and address the legal and regulatory requirements applicable to our operations and client solutions, including dedicated compliance personnel and training programs.

and continue to enhance, compliance programs and policies to monitor and address the legal and regulatory requirements applicable to our operations and client solutions, including dedicated compliance personnel and training programs.

As a global leader in HR and payroll solutions, our systems contain a significant amount of data related to clients, employees of our clients, vendors and our employees.

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In the United States, the Health Insurance Portability and Accountability Act of 1996 applies to our insurance services businesses and ADP TotalSource.

As part of our payroll and payroll tax management services, we move client funds to our clients’ employees, tax authorities and other payees via electronic transfer, direct deposit, prepaid access and ADPCheck.

In 2019, the Office of the Comptroller of Currency (the “OCC”) authorized us to open ADP Trust Company, National Association (the “ADP Trust Bank”), via a national trust bank charter pursuant to the National Bank Act.

As part of our payroll and payroll tax management services, we move client funds to our clients’ employees, independent contractors, tax authorities, garnishment recipients, and other third-party payees via electronic funds transfer (including direct deposit, wire transfer, and real-time payments), prepaid access and ADPCheck.

In 2019, the Office of the Comptroller of the Currency (the “OCC”) authorized us to open ADP Trust Company, National Association (the “ADP Trust Bank”), via a national trust bank charter pursuant to the National Bank Act.

The ADP Trust Bank is the sole trustee of ADP Client Trust, our grantor trust which holds U.S.

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money movement managed by the ADP Trust Bank and our U.S.

prepaid access offering

are subject to the anti-money laundering and reporting provisions of The Bank Secrecy Act of 1970, as amended by the USA PATRIOT Act of 2001 (the “BSA”).

prepaid access offering are subject to the anti-money laundering and reporting provisions of The Bank Secrecy Act of 1970, as amended (the “BSA”).

Our prepaid access offerings are subject to consumer protection laws and regulations, including the Electronic Funds Transfer Act and Regulation E issued by the Consumer Financial Protection Bureau as well as prohibitions on unfair, deceptive, or abusive acts or practices.

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Elements of our money movement activities outside of the United States are subject to licensing and similar anti-money laundering and reporting laws and requirements in certain countries in which we provide such services.

In February 2024, ADP Canada Co.

became a registered entity with the Financial Transactions and Reports Analysis Centre of Canada (“FINTRAC”), Canada’s anti-money laundering and anti-terrorist financing supervisor, as a Money Service Business as a result of a change in policy guidance from FINTRAC related to the Canadian Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

In November 2024, ADP Canada Co.

filed its application for registration with the Bank of Canada as a Payment Services Provider, as defined and required under the Retail Payment Activities Act.

Our employee background screening services business offers background checking services that are subject to the Fair Credit Reporting Act.

ADP Canada Co.

is registered with the Financial Transactions and Reports Analysis Centre of Canada (“FINTRAC”), Canada’s anti-money laundering and anti-terrorist financing supervisor, as a Money Services Business.

ADP Canada Co.

is also a registered Payment Service Provider with the Bank of Canada, as defined and required under the Retail Payment Activities Act.

Our employment background screening services business offers background checking services that are subject to the Fair Credit Reporting Act.

ADP TotalSource is subject to various state licensing requirements and, as a Certified PEO, maintains certifications with the Internal Revenue Service.

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In some cases, based on a client's timeline, the period may exceed two years for a large, multi-country ADP Global Payroll or ADP Lyric HCM client or other large, multi-phase implementation.

Although we monitor sales that have not yet been installed,

we do not view this metric as material to an understanding of our overall business in light of the recurring nature of our business.

Although we monitor sales that have not yet been installed, we do not view this metric as material to an understanding of our overall business in light of the recurring nature of our business.

This metric is not a reported number, but it is used by management as a planning tool to allocate resources needed to install services, and as a means of assessing our performance against the expectations of our clients.

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Based on our retention levels in fiscal 2026, our client retention is estimated at approximately 13 years in Employer Services, and approximately 6 years in PEO.

PRODUCT DEVELOPMENT

We continually upgrade, enhance, and expand our solutions and services.

In general, new solutions and services supplement rather than replace our existing solutions and services and, given our recurring revenue model, do not have a material and immediate effect on our revenues.

We believe that our strategic solutions and services have significant remaining life cycles.

RESEARCH AND DEVELOPMENT

During the fiscal years ended June 30, 2025, 2024 and 2023, we invested approximately $1.388 billion, $1.276 billion, and $1.195 billion, respectively, in research and development.

These investments include expenses for activities such as the development of new products, maintenance expenses associated with our existing technologies, investments in generative AI, purchases of

new software and software licenses, and additions to software resulting from business combinations.

We are the licensee under a number of agreements for computer programs and databases.

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Our HCM strategy is simple:

our people have differentiated us for over 75 years and we remain committed to valuing, developing and engaging them.

our people have differentiated us for 77 years and we remain committed to valuing, developing and engaging them.

Our Chief Human Resources Officer (“CHRO ” ), together with our Executive Leadership Team, manages our HCM strategy and related programs and initiatives, as well as our talent strategy.

Our CHRO, along with our CEO, as appropriate, regularly updates and supports our Compensation and Management Development Committee of the Board (“CMDC”) as well as the Board of Directors on HCM matters.

Our CHRO, along with our CEO, as appropriate, regularly updates and supports our Compensation and Management Development Committee of the Board (“CMDC”) as well as the

Board of Directors on HCM matters.

The CMDC is responsible for these matters, as well as our executive compensation program, company-wide equity-based plans, and our management succession planning and development program.

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Our Culture and Values

Over seventy-five years ago, our founders established values that still guide us today.

We seek to create a values-based culture where every associate feels like they belong and can thrive.

Seventy-seven years ago, our founders established values that still guide us today.

We seek to create a values-based culture where every associate feels supported and empowered at work.

Our long-term business success is closely linked to our commitment to creating an environment in which our associates can achieve their full potential, and to do so we listen to and engage our associates.

We conduct an annual culture survey, myVoice, where our associates can share their perspectives on important topics, including client service, culture, social responsibility, ethics and compliance, innovation and leadership.

Along with many of our world-class clients, we leverage our innovative StandOut ® powered by ADP platform, to help managers drive talent engagement throughout the year.

In addition, we leverage our innovative StandOut ® powered by ADP platform, to help managers drive talent engagement throughout the year.

We issue quarterly global StandOut® Engagement Pulse® surveys to ensure that all associates can share with their leaders how they feel about their work and their colleagues, and for us to get a snapshot of engagement across the globe.

Through our myMoment Recognition Program, we give our associates the opportunity to recognize and celebrate each other when they demonstrate our values, drive our

goals and go above and beyond in contributing to our collective success.

Our global ADP Cares program, which is funded by the ADP Foundation and our generous associates, helps members of our team get through difficult, unforeseen events such as natural disasters and major illnesses.

Through our myMoment Recognition Program, we give our associates the opportunity to recognize and celebrate each other when they demonstrate our values, drive our goals and go above and beyond in contributing to our collective success.

Our global ADP Cares program, which is funded by our generous associates with additional support from the ADP Foundation, helps members of our team get through difficult, unforeseen events such as natural disasters and major illnesses.

We also proudly support our associates that give back to our communities through paid volunteer time off and our donation matching program.

We value different perspectives and believe that our associates and their best ideas thrive in a diverse and inclusive environment.

We value different perspectives and believe that our associates and their best ideas thrive when everyone feels a sense of belonging.

We have a number of initiatives to strengthen and further cultivate our values-based culture.

As an example, ADP’s Global IDEB Impact Council was created to align and amplify our inclusion efforts, providing us with an advantage to attract and retain associates and clients.

The council, comprised of senior leaders across the enterprise, was designed to focus across four pillars, including Technology & Innovation, Culture & Belonging, Business Practices and Talent Practices.

Our voluntary business resource groups, which cover a broad array of associates and are open to all that share common interests and experiences, make us stronger by promoting inclusion and cultural awareness, accelerating associate engagement, retention and career development, helping build relationships in our communities, and promoting the conservation and restoration of natural resources.

As an example, our voluntary business resource groups, which cover a broad array of associates and are open to all, make us stronger by promoting inclusion and cultural awareness, accelerating associate engagement, retention and career development, helping build relationships in our communities, and promoting the conservation and restoration of natural resources.

At ADP, we are committed to upholding fair and equitable pay.

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And, we do not ask candidates to provide their salary history in most of the countries where we operate.

Our commitment to building a better world of work and creating a workplace where everyone can thrive has led to recognition across the globe, including Fortune’s World’s Most Admired Companies (19 consecutive years);

Forbes’ America’s Best Large Employers;

Our commitment to supporting and empowering our associates at work has led to recognition across the globe, including Fortune’s World’s Most Admired Companies (20 consecutive years);

Forbes’ World's Best Employers;

Fortune’s America’s Most Innovative Companies;

Fast Company’s Best Workplaces for Innovators;

Fast Company’s Most Innovative Companies;

TIME’s World’s Best Companies;

Wall Street Journal' s Best Companies for the Future;

and Newsweek’s Most Trustworthy Companies in America.

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Our sales professionals are provided with award-winning training programs and tools throughout their careers, and we also provide our technologists with access to training and experiences in the latest technologies on the market.

We know our people leaders have tremendous impact on our associates and clients, and so we invest in a leadership development strategy that uses innovative approaches to support new and experienced leaders with formal learning, tools to understand and engage their team, and in the moment support during moments that matter.

Additionally, our succession planning process deploys leaders to new career experiences that help ensure we are developing executives that will deliver results now and in the future.

We know our people leaders have tremendous impact on the experiences of our associates and clients, and on the growth of our business.

As such, we invest in a leadership development strategy that uses innovative approaches to support new and experienced leaders with formal learning, tools to understand and engage their team, and in the moment support during moments that matter.

Additionally, our succession planning process deploys leaders to new career experiences that help ensure we are developing leaders that will deliver results now and in the future.

Our Benefits and Health and Wellness Programs

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Our efforts include a company-wide health and safety manual and website, safety education and training, and a wellness program that rewards associates for completing wellness activities.

Physical and mental health initiatives vary across regions, but can include personal health checks, nutrition and fitness expert visits offering free consultation and programs, employee mental wellness assistance programs, free counseling and mental health therapy assistance for associates, and mindfulness classes.

Available Information

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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-K

Item 1. Business