10-K 0000008670-26-000030 (2026-08-05) vs 10-K 0000008670-25-000037 (2025-08-06)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 7,070 |
17.1% |
| MD&A | Item 7 | 7,847 |
18.2% |
| Legal Proceedings | Item 3, via Note 13 – COMMITMENTS AND CONTINGENCIES | 371 |
23.4% |
| Accounting Policies | Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 4,685 |
5.1% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, 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 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.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
For our PEO to sponsor many of its employee benefit plan offerings, it must qualify as the employer of the WSEs under certain provisions of the Internal Revenue Code and ERISA. Additionally, our PEO’s status as an employer for purposes of ERISA is important because ERISA preempts certain state laws that could limit our PEO’s ability to offer certain benefit plan offerings as we do today. The definition of employer under the Internal Revenue Code and ERISA is not uniform and there is no definitive judicial or legislative interpretation of employer in the context of PEOs. Because many of our PEO employee benefit plan offerings are subject to ERISA, our PEO must administer and operate these plans in accordance with ERISA requirements. We believe that our PEO benefit plans satisfy all applicable ERISA requirements, but if it were determined that the PEO benefit
Read it in 10-K 2026-08-05 at sec.gov ↗
AddedRisk Factors
plans fail to satisfy any such requirements, our PEO would likely be required to modify its current business model, and the PEO could be subject to material fines or penalties. Any such event could have an adverse impact on our financial results and liquidity.
Read it in 10-K 2026-08-05 at sec.gov ↗
AddedRisk Factors
The collection, storage, hosting, transfer, processing, disclosure, use, security and retention and destruction of personal information required to provide our services is subject to federal, state and foreign privacy, data protection and cyber security laws. These laws, which are not uniform, generally do one or more of the following: regulate the collection, storage, hosting,
Read it in 10-K 2026-08-05 at sec.gov ↗
AddedRisk Factors
In addition, laws and regulations covering marketing, advertising, and email, telephone and text messaging communications, including the Telephone Consumer Protection Act, are applicable to our business. Claims that we have violated such laws or regulations could expose us to costly litigation, and if successful, significant statutory damages or other liabilities that could adversely affect our reputation, business, financial condition or results of operations.
Read it in 10-K 2026-08-05 at sec.gov ↗
AddedRisk Factors
of confidential or proprietary information which could limit our ability to protect, or prevent us from protecting, our intellectual property rights.
Read it in 10-K 2026-08-05 at sec.gov ↗
AddedRisk Factors
Our payroll and tax processing services involve the collection, custody and transmission of a significant volume of funds in short-time frames. Our operations and the systems on which we rely have been, and may in the future be, subject to processing, technological, fraud-related or human errors, as well as failures, delays or disruptions, despite our efforts to design and implement effective processing systems, controls and procedures. The inability to properly perform our money movement services, operational errors in the performance of these services (including as a result of human or system errors, timing mismatches, settlement failures, unauthorized transactions or failures or delays attributable to financial institutions or other third parties), or our failure to recover any funds from clients could result in significant financial losses, regulatory intervention, fines and penalties, litigation and reputational harm, which could have a material adverse effect on our business, financial condition and results of operations.
Read it in 10-K 2026-08-05 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
cybersecurity incidents, which may make us more vulnerable to cybersecurity incidents as well.
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 ↗
RewordedRisk Factors
As part of our overall data protection compliance program in connection with the GDPR, we implemented Binding Corporate Rules (“BCRs”) as both a data processor and data controller, which permits us to process and transfer personal data across borders in compliance with EU data protection laws.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedRisk Factors
Our use of AI, including generative AI and agentic AI, in our products and operations also introduces additional risks, including risks related to accuracy, bias, discrimination, transparency, security, and privacy. privacy, that could expose us to regulatory investigations, enforcement actions, litigation and reputational damage.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedRisk Factors
In addition, use of AI tools may result in the release of confidential or proprietary information which could limit our ability to protect, or prevent us from protecting, our intellectual property rights.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedRisk Factors
ADP Canada Co. is a registered entity with FINTRAC as a Money Services Business with FINTRAC and a Payment Service Business. Provider with the Bank of Canada.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedRisk Factors
Our industry is subject to rapid technological change, including as a result of AI, and if we fail to upgrade, enhance and expand our technology and services to meet client needs and preferences, the demand for our solutions and services may materially diminish
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedRisk Factors
A reduction in the availability of any such financing during periods of disruption in the financial markets or otherwise may increase our borrowing costs and/or require us to sell available-for-sale securities in our funds held for clients to satisfy our short-term funding requirements.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedRisk Factors
Further, while we perform due diligence prior to acquisitions and take actions to safeguard the businesses that we acquire, these businesses may not have invested as significantly as we do in security and technology and may be more susceptible to cybersecurity incidents, which may make us more vulnerable to cybersecurity incidents as well.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedRisk Factors
We are increasingly leveraging AI and ML in our solutions and service delivery and are exploring how best continuing to integrate AI technologies, including generative AI technologies and agentic AI, to develop and deploy capabilities that are beneficial to our clients and their employees.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedRisk Factors
Changes in laws or regulations have caused, and could also cause in the future cause, us to modify our client funds investment strategy, which may reduce the interest income earned on such funds.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedRisk Factors
Among other things, the BSA requires anti-money laundering laws and regulations require certain financial institutions, including banks and money services businesses (such as national trust banks and providers of prepaid access like us), to develop and implement risk-based anti-money laundering programs, report large cash transactions and suspicious activity, and maintain transaction records.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedRisk Factors
Trade, including the imposition of tariffs or other trade restrictions, monetary and fiscal policies, and political and economic conditions may substantially change, and credit markets may experience periods of constriction and volatility.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedRisk Factors
A slowdown in the economy or other negative changes, including in employment levels, levels (as a result of AI or otherwise), the level of interest rates or the level of inflation, may have a negative impact on our businesses.
Read it in 10-K 2026-08-05 at sec.gov ↗
Quiet changesRisk Factors
The risk of failing to receive such payments from PEO clients could be is magnified during significant financial or other disruptions or catastrophic events, such as the failure of a bank with whom a significant number of PEO clients may bank at the time, or more widespread stress or failure within the U.S. banking system.
Read it in 10-K 2026-08-05 at sec.gov ↗
AddedMD&A
During fiscal 2026, we made meaningful progress on our Strategic Priorities. We continued to leverage our data advantages, domain expertise, and trusted brand to lead the HCM industry's AI transformation. ADP Assist became increasingly embedded in our clients' workflows, delivering meaningful time savings and improved accuracy. Since launching ADP Assist agents in January, we steadily expanded their availability across our payroll, benefits, HR, and compliance solutions, making AI-powered HCM agents accessible to nearly all of our more than 1.1 million clients. We also launched a dedicated space within ADP Marketplace for our partners' AI agents, further expanding our AI ecosystem. Additionally, we continued deploying AI tools across our sales, service, and research and development functions to improve the client experience and drive internal productivity gains. During the year, we experienced strong enterprise sales momentum for ADP Lyric HCM and the ADP WorkForce Suite, as our unified global payroll, global HR, and global time solutions continued to resonate with clients. Finally, we remained focused on delivering value through our global scale by providing compliant HCM solutions, local expertise, and trusted relationships wherever our clients operate.
Read it in 10-K 2026-08-05 at sec.gov ↗
AddedMD&A
ANALYSIS OF REPORTABLE SEGMENTSRevenues Years Ended % Change June 30, 2026 2025 As Reported Organic Constant Currency Employer Services $ 14,831.4 $ 13,883.1 7% 5% PEO Services 7,128.1 6,690.4 7% 7% Intercompany eliminations (12.1) (12.6) n/m n/m $ 21,947.4 $ 20,560.9 7% 6%
Read it in 10-K 2026-08-05 at sec.gov ↗
AddedMD&A
(d) Represents (gains)/losses on investments made through our Corporate Venture Capital arm, ADP Ventures. (Gains)/losses on these investments may result from observable price changes, changes in ownership interest, accrued interest income, and impairment charges. These adjustments may be highly variable, are predominantly non-cash, are outside our control, and are not fundamental to the underlying operations of our business model.
Read it in 10-K 2026-08-05 at sec.gov ↗
AddedMD&A
(e) In fiscal 2026, this represents a net charge (establishment of a legal reserve and insurance recovery) from a legal matter settled during the year ended June 30, 2026. Refer to Note 13, Commitments and Contingencies, within the Notes to the Consolidated Financial Statements for further discussion. In fiscal 2025, this represents a reversal of a legal reserve recorded during the year ended June 30, 2023.
Read it in 10-K 2026-08-05 at sec.gov ↗
AddedMD&A
assumptions including projected revenue growth rates and profitability projections are dependent on our ability to upgrade, enhance, and expand our technology and services to meet client needs and preferences.
Read it in 10-K 2026-08-05 at sec.gov ↗
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 ↗
RemovedMD&A
(b) The charges in fiscal 2024 include consulting costs relating to our company-wide transformation initiatives.
Read it in 10-K 2025-08-06 at sec.gov ↗
RemovedMD&A
(c) In fiscal 2024, this represents reserve reversal of a legal matter from fiscal 2023.
Read it in 10-K 2025-08-06 at sec.gov ↗
RewordedMD&A
ADP's success in obtaining and retaining clients, and selling additional services to clients; the pricing of products and services; the success of our new solutions; our ability to respond successfully to changes in technology, including artificial intelligence; compliance with existing or new legislation or regulations; changes in, or interpretations of, existing legislation or regulations; overall market, political and economic conditions, including interest rate and foreign currency trends and inflation; competitive conditions; our ability to maintain our current credit ratings and the impact on our funding costs and profitability; security or cyber breaches, fraudulent acts, and system interruptions and failures; employment and wage levels; availability of
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedMD&A
Net cash flows used in provided by/(used in) financing activities changed primarily due to a net decrease increase in the cash flow from client funds obligations of $9,288.1 $21,516.6 million, which is due to the timing of impounds from our clients and payments to our clients' employees and other payees, a net increase decrease in cash distributed to our clients that was received from the Internal Revenue Service, and a net increase in payments related to reverse repurchase agreements, Service of $576.2 million, partially offset by net proceeds from the issuance repayment of $4,769.5 million related to borrowings outstanding as of June 30, 2025 under the commercial paper program and redemption an increase of debt. $802.8 million in repurchases of common stock.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedMD&A
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:
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedMD&A
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:
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedMD&A
The increase decrease in the effective tax rate is primarily due to higher reserves for a decrease in uncertain tax positions in fiscal 2025 and a valuation allowance release in fiscal 2024 offset by an increase in the tax credits, partially offset by a lower benefit for adjustments to prior year tax liabilities and a lower excess tax benefit on stock-based compensation in for fiscal 2026 as compared to fiscal 2025.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedMD&A
Employer Services' earnings before income taxes increased in fiscal 2025 2026 due to increased the increase in revenues, including contributions from client funds interest, discussed above, partially offset by increases in expenses, including $188.6 million in selling and operating efficiencies for marketing expenses and $159.7 million in costs of servicing and implementing our clients on growing revenue, partially offset by increased selling and marketing expenses and the impact from the WorkForce Software acquisition. revenue.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedMD&A
Our contractual obligations at as of June 30, 2025 2026 relate primarily to operating leases (Note 7) 7 of our Consolidated Financial Statements) and other arrangements recorded in our balance sheet or disclosed in the notes to our financial statements, including benefit plan obligations (Note 11), 11 of our Consolidated Financial Statements), liabilities for uncertain tax positions (Note 12), 12 of our Consolidated Financial Statements), purchase obligations (Note 13), 13 of our Consolidated Financial Statements), debt obligations (Note 10) 10 of our Consolidated Financial Statements) and $875.0 $1,333.0 million of interest payments on our debt, of which $121.5 $171.5 million is expected to be paid within one year.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedMD&A
Net cash flows used in investing activities changed primarily due to the acquisition of WorkForce Software with a net cash disbursement of $1,158.3 million and timing of the net proceeds and purchases of corporate and client funds marketable securities of $523.0 million. $2,696.2 million, offset by a net decrease in acquisitions of businesses, which totaled $1,165.1 million in fiscal 2025, primarily related to the Workforce Software acquisition.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedMD&A
Employer Services' revenues increased in fiscal 2025 2026 due to new business started from new business bookings, strong client revenue retention, an increase in pricing, a 1% year-over-year growth impact of foreign currency, an increase in interest earned on funds held for clients, the impact from the WorkForce Software acquisition, clients of $164.1 million, and an increase in the volume of our pays per control when measured on a same-store-sales basis of 1%, as compared to fiscal 2024. 1%.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedMD&A
Other (Income)/Expense, netYears ended June 30, 2026 2025 2024 $ Change Interest income on corporate funds $ (371.0) $ (319.5) $ (241.3) $ 78.2 (51.5) Realized losses (gains)/losses on available-for-sale securities, net (2.9) 1.7 5.9 4.2 (4.6) Gain on sale of assets — (5.0) (17.1) (12.1) 5.0 Non-service components of pension income, net (28.3) (31.3) (34.2) (2.9) 3.0 Net (gain)/loss on ADP Ventures' investments (8.4) — (8.4) Other income, net $ (410.6) $ (354.1) $ (286.7) $ 67.4 (56.5)
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedMD&A
The increase in interest earned on funds held for clients resulted from an increase in our average interest rate earned client funds balances of 7.4% to 3.2% $40.4 billion in fiscal 2025, 2026 as compared to 2.9% in fiscal 2024, 2025, coupled with an increase in our average client funds balances of 6.4% interest rate earned to $37.6 billion 3.4% in fiscal 2025 2026, as compared to 3.2% in fiscal 2024. 2025.
Read it in 10-K 2026-08-05 at sec.gov ↗
RewordedMD&A
Revenues Total revenues increased in fiscal 2025 2026 due to new business started from new business bookings, strong client revenue retention, an increase in zero-margin benefits pass-throughs, pass-throughs of $318.3 million, an increase in pricing, a 1% year-over-year growth impact of foreign currency, and an increase in interest on funds held for clients, and the impact from the WorkForce Software acquisition. clients of $165.7 million.
Read it in 10-K 2026-08-05 at sec.gov ↗
