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ADPAutomatic Data Processing

Industrials · Data Processing · Nasdaq
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The 10-K against last year's

92 changes: 11 added, 11 removed, 69 reworded, 1 quiet changes

10-K Aug 5, 2026 vs Aug 6, 2025
Risk FactorsRedline ↓
17.1%
of the text changed · 7,070 words now
18.2%
of the text changed · 7,847 words now
Legal ProceedingsRedline ↓
23.4%
of the text changed · 371 words now
Accounting PoliciesRedline ↓
5.1%
of the text changed · 4,685 words now

10-K 0000008670-26-000030 (2026-08-05) vs 10-K 0000008670-25-000037 (2025-08-06)

The redline

The paragraph that changed most in each section

Marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

Risk Factors 251 words changed in this paragraph; it is 42% similar to last year's version.
We have programs and processes in place designed to prevent, detect and respond to data or cybersecurity incidents. However, as a result of the complexity of our operating environment, the period over which hardware and software has been acquired or other reasons, our programs and processes may not be sufficient or adequate or may fail to prevent, detect or respond to a cybersecurity incident or identify and/or remediate a security vulnerability in our operating environment. The techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently, frequently and are increasingly more complex, sophisticated and effective (including due to the use of AI). As AI technologies, including generative and agentic AI, continue to evolve, threat actors are increasingly leveraging these technologies to enhance the sophistication, scale, speed and effectiveness of cyberattacks making them more difficult to detect and defend against. The adoption and deployment of AI technologies within our and our authorized third parties’ solutions, services, and systems may also introduce novel security, data governance and operational risks. In addition, new computing technologies, including quantum computing, new discoveries in the field of cryptography or other developments could result in a compromise or breach of the algorithms we or our authorized third parties use or have used to encrypt and protect data. We may fail to anticipate or detect these techniques and/or incidents for long periods of time and, even when we do so, we may be unable or fail to implement adequate or timely preventive or responsive measures. Our ability to address data or cybersecurity incidents may also depend on the timing and nature of assistance that may be provided from relevant governmental or law enforcement agencies. Hardware, software, applications or services that we develop or procure from authorized third parties, or are required by governmental or law enforcement agencies to install on our systems, may contain defects in design or manufacture or other problems that could (or in respect of third party software, may be designed to) compromise the confidentiality, integrity or availability of data or our

Source: Item 1A, 10-K 0000008670-26-000030 vs Item 1A, 10-K 0000008670-25-000037

MD&A 211 words changed in this paragraph; it is 60% similar to last year's version.
Years Ended % Change June 30, 2026 2025 2024 As Reported Net earnings $ 4,413.5 $ 4,079.7 $ 3,752.0 9% 8% Adjustments: Provision for income taxes 1,316.8 1,230.4 1,120.3 All other interest expense (a) 141.0 114.8 71.4 All other interest income (a) (92.9) (94.2) (97.0) Optimization initiatives (b) (4.5) 19.4 Business alignment program (c) 91.1 — Gain on sale of assets — (2.6) Net (gain)/loss on ADP Ventures' investments (d) (8.4) — Transformation initiatives (b) 0.1 5.4 Legal settlements (c) (e) 18.0 (0.4) (4.0) Optimization initiatives (d) 19.3 42.0 Adjusted EBIT $ 5,874.6 $ 5,347.1 $ 4,890.1 9% 10% Adjusted EBIT Margin 26.8 % 26.0 % 25.5 % Provision for income taxes $ 1,316.8 $ 1,230.4 $ 1,120.3 10% 7% Adjustments: Optimization initiatives (f) (1.2) 4.8 Business alignment program (f) 23.2 — Gain on sale of assets (e) (f) — (0.6) Net (gain)/loss on ADP Ventures' investments (f) (2.1) — Transformation initiatives (e) — 1.3 Legal settlements (e) (f) 4.4 (0.1) (0.9) Optimization initiatives (e) 4.8 10.5 Adjusted provision for income taxes $ 1,341.1 $ 1,234.5 $ 1,131.2 9% Adjusted effective tax rate (f) (g) 23.0 % 23.2 % 23.0 % Net earnings $ 4,413.5 $ 4,079.7 $ 3,752.0 9% 8% Adjustments: Optimization initiatives (b) (4.5) 19.4 Income tax provision for/(benefit from) optimization initiatives (f) 1.2 (4.8) Gain on sale of assets — (2.6) — Income tax provision on for gain on sale of assets (e) (f) — 0.6 Business alignment program (c) 91.1 — Transformation initiatives (b) 0.1 5.4 Income tax benefit for transformation initiatives (e) from business alignment program (f) (23.2) — (1.3) Legal settlements (c) (0.4) (4.0) Net (gain)/loss on ADP Ventures' investments (d) (8.4) — Income tax provision for net (gain)/loss on ADP Ventures' investments (f) 2.1 — Legal settlements (e) 18.0 (0.4) Income tax (benefit from)/provision for legal settlements (e) (f) (4.4) 0.1 0.9 Optimization initiatives (d) 19.3 42.0 Income tax benefit for optimization initiatives (e) (4.8) (10.5) Adjusted net earnings $ 4,485.4 $ 4,092.0 $ 3,784.5 8% 10% Diluted EPS $ 10.94 $ 9.98 $ 9.10 10% Adjustments: Transformation Optimization initiatives (b) (e) (f) (0.01) 0.03 Business alignment program (c) (f) 0.17 — 0.01 Net (gain)/loss on ADP Ventures' investments (d) (f) (0.02) — Legal settlements (c) (e) (f) 0.04 — (0.01) Optimization initiatives (d) (e) 0.03 0.08 Adjusted diluted EPS $ 11.12 $ 10.01 $ 9.18 9% 11%

Source: Item 7, 10-K 0000008670-26-000030 vs Item 7, 10-K 0000008670-25-000037

Accounting Policies 117 words changed in this paragraph; it is 35% similar to last year's version.
ASU 2023-09 Income Taxes (Topic 740): 2025-06 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to Income Tax Disclosures the Accounting for This update enhances modernizes the transparency accounting guidance for internal-use software costs and decision usefulness requires capitalization of income tax disclosures software costs to better assess how an entity’s operations begin when (1) management has authorized and related tax risks, tax planning committed to funding the software project and operational opportunities affect its tax rate (2) it is probable that the project will be completed and prospects for future cash flows. June 30, 2026 the software will be used to perform the function intended. July 1, 2028 The Company is assessing this guidance. The adoption will modify disclosures but will guidance and has not have an yet determined the impact of ASU 2025-06 on the Company's its consolidated results of operations, financial condition, or cash flows.

Source: Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0000008670-26-000030 vs Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0000008670-25-000037

Legal Proceedings 94 words changed in this paragraph; it is 56% similar to last year's version.
In May 2020, a putative class action complaint was filed against ADP, TotalSource and related defendants in the U.S. District Court, District of New Jersey. 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 Company reached a settlement of all outstanding claims for $48 million, subject to the court's approval. Accordingly, as of June 30, 2026, the Company recorded a $48 million accrual within accrued expenses and other unspecified monetary damages, injunctive relief and attorney’s fees. The current liabilities on the Consolidated Balance Sheet. Additionally, the Company is unable to estimate any reasonably possible loss, or range recorded insurance receivables of loss, with respect to this matter. The Company is vigorously defending against this lawsuit. $30 million within accounts receivable on the Consolidated Balance Sheet, which represents recoveries considered probable from purchased insurance.

Source: Item 3, via Note 13 – COMMITMENTS AND CONTINGENCIES, 10-K 0000008670-26-000030 vs Item 3, via Note 13 – COMMITMENTS AND CONTINGENCIES, 10-K 0000008670-25-000037

Every change, by type

Sentences and paragraphs added, removed or reworded

Sentences and paragraphs of ADP's Risk Factors and MD&A, 10-K 2026-08-05 against 10-K 2025-08-06. Each links to the text at sec.gov.

RemovedRisk Factors
In addition, changes in laws or regulations, or changes in the interpretation of laws or regulations by a regulatory authority, may decrease our revenues and earnings and may require us to change the manner in which we conduct some aspects of our business. For example, a change in regulations either decreasing the amount of taxes to be

Read it in 10-K 2025-08-06 at sec.gov ↗

RemovedRisk Factors
result, noncompliance, the failure to meet such expectations or the perception of noncompliance or such failure, whether or not valid, may damage our reputation.

Read it in 10-K 2025-08-06 at sec.gov ↗

RemovedRisk Factors
connection with any such claim or litigation. Even if we were to prevail in such a dispute, any litigation could be costly and time-consuming.

Read it in 10-K 2025-08-06 at sec.gov ↗

RemovedRisk Factors
We have programs and processes in place designed to prevent, detect and respond to data or cybersecurity incidents. However, as a result of the complexity of our operating environment, the period over which hardware and software has been acquired or other reasons, our programs and processes may not be sufficient or adequate or may fail to prevent, detect or respond to a cybersecurity incident or identify and/or remediate a security vulnerability in our operating environment. The techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently, are

Read it in 10-K 2025-08-06 at sec.gov ↗

RemovedRisk Factors
Many of our businesses are highly dependent on our ability to process, on a daily basis, a large number of complicated transactions. We rely heavily on our payroll, financial, accounting, and other data processing systems. We need to properly manage our systems, applications and solutions, and any upgrades, enhancements and expansions we may undertake from time to time, in order to ensure they properly support our businesses. From time to time in the

Read it in 10-K 2025-08-06 at sec.gov ↗

RemovedRisk Factors
The COVID-19 outbreak created, and such other events may create, significant volatility and uncertainty and economic and financial market disruption. The extent of any such impact depends on developments which are highly uncertain and cannot be predicted, including the

Read it in 10-K 2025-08-06 at sec.gov ↗

RemovedRisk Factors
In addition, the nature of the office environment and remote or hybrid working is changing, which may make it more difficult to attract and retain personnel. It may also present operational and workplace culture challenges that may adversely affect our business.

Read it in 10-K 2025-08-06 at sec.gov ↗

Show the other 3
RemovedMD&A
During fiscal 2025, we continued to make meaningful progress on our Strategic Priorities. We launched ADP Lyric HCM, an all-in-one solution designed to address workplace challenges with personalized experiences that meet client needs. We acquired WorkForce Software, a premier workforce management solutions provider, and began to integrate it into our global HCM ecosystem to better serve large, global enterprises. We enhanced our distribution network by launching an integrated payroll solution for small businesses. We augmented our global payroll capabilities by continuing to expand our offerings in markets with exciting growth opportunities like Japan and Saudi Arabia, and by acquiring payroll businesses like PEI (Procesamiento Externo de Informacion, S.C.) in Mexico. Lastly, we continued deploying AI tools in our products and across our sales, service, and research and development functions to improve the client experience and drive internal productivity gains.

Read it in 10-K 2025-08-06 at sec.gov ↗

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