Automatic Data Processing reports $5.49 billion revenue for fiscal Q1 2027

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For the Year Ended June 30 , 2026

ANNUAL QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2026

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One ADP Boulevard, MS 450

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Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes No

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the such filing requirements for the past 90 days. Yes No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T ( 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting company, and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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Indicate by check mark whether the registrant has filed a report on and attestation to its management s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to 240.10D-1(b).

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant as of the last business day of the Registrant s most recently completed second fiscal quarter was approximately $ 103,569,897,016 . On July 31, 2026 there were 397,262,737 shares of Common Stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Registrant's Proxy Statement for its 2026 Annual Meeting of Stockholders. Part III

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

Exchange Act). Yes No

The number of shares outstanding of the registrant s common stock as of October 27, 2026 was 394,759,432 .

PART I FINANCIAL INFORMATION

MD&A 2 changes

Tabular dollars are presented in millions, except per share amounts

The following section discusses our year ended June 30, 2026 ( fiscal 2026 ), as compared to year ended June 30, 2025 ( fiscal 2025 ). A detailed review of our fiscal 2025 performance compared to our fiscal 2024 performance is set forth in Part II, Item 7 of our Form 10-K for the year ended June 30, 2025.

Financial statements 243 changes

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Automatic Data Processing, Inc.

Roseland, New Jersey

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Automatic Data Processing, Inc. and subsidiaries (the "Company") as of June 30, 2026 and 2025, the related statements of consolidated earnings, comprehensive income, stockholders' equity, and cash flows for each of the three years in the period ended June 30, 2026, and the related notes and the schedule listed in the Index at Item 15(a)2 (collectively referred to as the financial statements ). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2026, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company s internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated August 5, 2026 , expressed an unqualified opinion on the Company s internal control over financial reporting.

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Goodwill Employer Services Reportable Segment Refer to Notes 1 and 8 to the financial statements

Critical Audit Matter Description

The Company s assessment of goodwill for impairment involves the comparison of the fair value of each reporting unit to its carrying value. The Company uses the discounted cash flow model to estimate fair value, which requires management to make significant estimates and assumptions related to projected revenue growth rates and profitability projections. In addition, the discounted cash flow model requires the Company to select an appropriate weighted average cost of capital based on current market conditions as of June 30, 2026. Changes in these assumptions could have a significant impact on either the fair value, the amount of any goodwill impairment charge, or both.

One reporting unit within the Employer Services reportable segment has limited historical data for its HCM solution, which required significant management judgment to project revenue growth rates and profitability used to estimate the reporting unit's fair value. In turn, a high degree of auditor judgment and an increased extent of audit effort were required when performing audit procedures to evaluate the reasonableness of management s estimates and assumptions related to the projected revenue growth rates and profitability projections and the selection of the weighted average cost of capital, including the involvement of our fair value specialists.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the reporting unit's projected revenue growth rates and profitability projections and the selection of the weighted average cost of capital used by management to estimate the fair value contributed by the HCM solution included the following, among others:

We tested the effectiveness of controls over management s goodwill impairment evaluation, including those over the determination of the fair value of the reporting unit within the Employer Services reportable segment, such as controls related to management s projected revenue growth rates and profitability projections and the selection of the weighted average cost of capital.

With the assistance of our fair value specialists, we evaluated the reasonableness of the valuation models, methodology, and significant assumptions used by the Company, specifically the weighted average cost of capital including:

Testing the mathematical accuracy of the Company s calculation of the weighted average cost of capital.

Developing a range of independent estimates and compared to the weighted average cost of capital selected by management.

We evaluated management s ability to accurately project revenue growth rates and profitability by comparing actual results to management s historical projections. Due to the limited historical data for the HCM solution, we evaluated the reasonableness of management s projected revenue growth rates and profitability projections by comparing the projections to (1) the historical operating results of the Company s similar existing solutions, (2) the limited operating results to date of the HCM solution, (3) internal communications to management and the board of directors, and (4) external communications made by management to analysts and investors.

Client Funds Obligations - Refer to Note 5 to the financial statements

Critical Audit Matter Description

Client funds obligations represent the Company's contractual obligations to remit funds to satisfy clients' payroll, tax and other payee payment obligations and are recorded as a liability at the time that the Company impounds funds from clients (i.e., money movement). The Company has reported client funds obligations as a current liability in the consolidated financial statements totaling $44,415.5 million as of June 30, 2026. This money movement activity involves significant amounts of client funds being impounded and remitted to third parties and results in a high volume of transactions.

To validate the accuracy and completeness of the client funds obligations reported as of period end, the Company performs complex data extracts in order to reconcile the transactional data to the client funds obligations and funds held for clients balances reported at period end. Given the significant volume of data used in the reconciliation, the complexity of the data extraction, and the reconciliation of the data extracts to the client funds obligations balance reported, auditing the client funds obligations is complex and requires the involvement of data specialists to independently reperform the reconciliation and assist with testing of the completeness and accuracy of client funds obligations reported as of period end, including identifying the manual adjustments identified in management s reconciliation process.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the Company's client funds obligations included the following, among others:

We tested the effectiveness of general information technology controls over the applications relevant to the money movement reconciliation process.

We tested the effectiveness of (1) management s controls over the client funds obligations data reconciliation and (2) management s control to reconcile the consolidated client funds obligations to the corresponding consolidated funds held for clients balance.

We involved data specialists to (1) independently reperform management s client funds obligations reconciliation and (2) perform data analyses to identify and evaluate recurring and new adjustments to the data extracts in the current period.

For a selection of client funds obligations transactions, we evaluated whether the funds were impounded prior to June 30, 2026, agreed the liability to the corresponding asset balance, and evaluated whether the funds were properly included or excluded from the client funds obligations.

We made a selection of adjustments identified by management s reconciliation of the transactional data to the client funds obligations balance reported at period end and evaluated whether the adjustments were supported and appropriate to reconcile and validate the client funds obligations balance reported at period end.

We made a selection of disbursements to third parties subsequent to the balance sheet date to evaluate whether they were properly included or excluded from client funds obligations.

We tested the Company s reconciliation of the consolidated client funds obligations to funds held for clients.

/s/ Deloitte & Touche LLP

Morristown, New Jersey

We have served as the Company s auditor since 1968.

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Years ended June 30, 2026 2025 2024

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for clients and PEO revenues $ 13,476.8 $ 12,692.2 $ 11,953.6

Interest on funds held for clients 1,354.8 1,189.1 1,024.7

PEO revenues (A) 7,115.8 6,679.6 6,224.3

TOTAL REVENUES 21,947.4 20,560.9 19,202.6

Operating expenses 10,240.6 9,622.7 9,050.1

Research and development 1,028.8 988.6 955.7

Depreciation and amortization 490.8 486.0 470.9

TOTAL COSTS OF REVENUES 11,760.2 11,097.3 10,476.7

Selling, general, and administrative expenses 4,408.2 4,051.7 3,778.9

Interest expense 459.3 455.9 361.4

TOTAL EXPENSES 16,627.7 15,604.9 14,617.0

Other (income)/expense, net ( 410.6 ) ( 354.1 ) ( 286.7 )

EARNINGS BEFORE INCOME TAXES 5,730.3 5,310.1 4,872.3

Provision for income taxes 1,316.8 1,230.4 1,120.3

NET EARNINGS $ 4,413.5 $ 4,079.7 $ 3,752.0

BASIC EARNINGS PER SHARE $ 10.97 $ 10.02 $ 9.14

DILUTED EARNINGS PER SHARE $ 10.94 $ 9.98 $ 9.10

Basic weighted average shares outstanding 402.3 407.1 410.6

Diluted weighted average shares outstanding 403.3 408.7 412.2 (A) For the years ended June 30, 2026 ( fiscal 2026 ), June 30, 2025 ( fiscal 2025 ), and June 30, 2024 ( fiscal 2024 ), Professional Employer Organization ( PEO ) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes, of $ 81,123.2 million, $ 75,220.1 million, and $ 69,874.1 million, respectively.

for clients and PEO revenues $ 3,356.2 $ 3,203.5

Interest on funds held for clients 329.3 286.8

PEO revenues (a) 1,805.2 1,684.9

TOTAL REVENUES 5,490.7 5,175.2

Operating expenses 2,584.9 2,461.6

Research and development 251.3 251.2

Depreciation and amortization 129.0 123.3

TOTAL COSTS OF REVENUES 2,965.2 2,836.1

Selling, general, and administrative expenses 1,062.8 1,006.3

Interest expense 148.1 135.4

TOTAL EXPENSES 4,176.1 3,977.8

Other (income)/expense, net ( 140.3 ) ( 110.1 )

EARNINGS BEFORE INCOME TAXES 1,454.9 1,307.5

Provision for income taxes 329.7 294.5

NET EARNINGS $ 1,125.2 $ 1,013.0

BASIC EARNINGS PER SHARE $ 2.84 $ 2.50

DILUTED EARNINGS PER SHARE $ 2.83 $ 2.49

Basic weighted average shares outstanding 396.5 405.1

Diluted weighted average shares outstanding 397.6 406.5

(a) Professional Employer Organization ( PEO ) revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $ 18,991.0 million and $ 18,534.4 million for the three months ended September 30, 2026 and 2025, respectively.

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Years ended June 30, 2026 2025 2024

Net earnings $ 4,413.5 $ 4,079.7 $ 3,752.0

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and 163 more changes in the filing

Note 3: Revenue 64 changes

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HCM provides a suite of product offerings that assist employers of all types and sizes in all stages of the employment cycle, from recruitment to retirement. Global is generally consistent with the types of services provided within HCM but represent geographies outside of the United States and includes our multinational offerings. HCM and Global revenues are primarily attributable to fees for providing payroll services, benefits administration, talent management, workforce management solutions, compliance solutions, retirement services and HR management and fees charged to implement the Company's solutions for clients.

HRO provides a comprehensive human resources outsourcing solution, including offering benefits, providing workers compensation insurance, and administering state unemployment insurance, among other human resources functions. This revenue is primarily driven by PEO. The Company has further disaggregated HRO to separate out its PEO zero-margin benefits pass-through revenues.

The Company recognizes client fund interest revenues on collected but not yet remitted funds held for clients in revenues as earned, as the collection, holding and remittance of these funds are critical components of providing these services.

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HCM $ 9,110.6 $ 8,674.5 $ 8,155.7

PEO zero-margin benefits pass-throughs 4,607.3 4,289.0 3,975.9

Global 2,901.2 2,626.0 2,502.1

Interest on funds held for clients 1,354.8 1,189.1 1,024.7

Total revenues $ 21,947.4 $ 20,560.9 $ 19,202.6

Types of Revenues Employer Services PEO Total

HCM $ 9,120.4 $ $ 9,120.4

HRO, excluding PEO zero-margin benefits pass-throughs 1,467.4 2,508.4 3,975.8

Global 2,901.2 2,901.2

Interest on funds held for clients 1,342.4 12.4 1,354.8

Total segment revenues 14,831.4 7,128.1 21,959.5

Intercompany eliminations ( 12.1 )

Total consolidated revenues $ 21,947.4

Reconciliation of disaggregated revenue to our reportable segments for the year ended June 30, 2025:

Types of Revenues 2026 2025 2024

HCM $ 2,255.4 $ 2,155.7

HRO, excluding PEO zero-margin benefits pass-throughs 3,973.5 3,782.3 3,544.2 953.1 911.4

PEO zero-margin benefits pass-throughs 4,607.3 4,607.3 1,228.6 1,131.0

Interest on funds held for clients 329.3 286.8

Total revenues $ 5,490.7 $ 5,175.2

Reconciliation of disaggregated revenue to our reportable segments for the year three months ended June September 30, 2026:

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HCM $ 8,684.5 $ $ 8,684.5

Global 2,626.0 2,626.0

Interest on funds held for clients 1,178.3 10.8 1,189.1

Total segment revenues 13,883.1 6,690.4 20,573.5

Intercompany eliminations ( 12.6 )

Total consolidated revenues $ 20,560.9

HCM $ 2,258.7 $ $ 2,258.7

HRO, excluding PEO zero-margin benefits pass-throughs 1,394.3 2,390.6 3,784.9 376.1 576.5 952.6

PEO zero-margin benefits pass-throughs 4,289.0 4,289.0 1,228.6 1,228.6

Interest on funds held for clients 326.3 3.0 329.3

Total segment revenues 3,685.4 1,808.1 5,493.5

Intercompany eliminations ( 2.8 )

Total consolidated revenues $ 5,490.7

Reconciliation of disaggregated revenue to our reportable segments for the year three months ended June September 30, 2024: 2025:

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HCM $ 8,164.2 $ $ 8,164.2

Global 2,502.1 2,502.1

Interest on funds held for clients 1,015.4 9.3 1,024.7

Total segment revenues 12,980.8 6,233.6 19,214.4

Intercompany eliminations ( 11.8 )

Total consolidated revenues $ 19,202.6

HCM $ 2,158.3 $ $ 2,158.3

HRO, excluding PEO zero-margin benefits pass-throughs 1,299.1 2,248.4 3,547.5 358.4 553.9 912.3

PEO zero-margin benefits pass-throughs 3,975.9 3,975.9 1,131.0 1,131.0

Interest on funds held for clients 284.2 2.6 286.8

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

Intercompany eliminations ( 3.5 )

Total consolidated revenues $ 5,175.2

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Contract liability, June 30, 2026 $ 525.6

The balance is as follows:

Deferred costs to obtain a contract $ 1,500.4 $ 1,438.6

Deferred costs to fulfill a contract 1,743.7 1,715.5

Total deferred contract costs (1) $ 3,244.1 $ 3,154.1

(1) The amount of total deferred costs amortized during the years ended June 30, 2026, June 30, 2025, and June 30, 2024 were $ 1,200.5 million, $ 1,145.3 million, and $ 1,067.6 million, respectively.

Deferred costs are periodically reviewed for impairment. There were no impairment losses incurred during the period.

Changes in deferred revenue revenues related to set up fees for the year three months ended June September 30, 2026 were as follows:

Contract liability, July 1, 2025 2026 $ 520.2 525.6

Recognition of revenue included in beginning of year contract liability ( 139.5 37.3 )

Contract liability, net of revenue recognized on contracts during the year 147.5 period 27.6

Currency translation adjustments ( 2.6 1.4 )

Contract liability, September 30, 2026 $ 514.5

Note 5: Other (Income)/Expense, Net 10 changes

Other (income)/expense, net consists of the following:

Years ended June 30, 2026 2025 2024

Interest income on corporate funds $ ( 371.0 ) $ ( 319.5 ) $ ( 241.3 )

Gain on sale of assets ( 5.0 ) ( 17.1 )

Other (income)/expense, net $ ( 410.6 ) $ ( 354.1 ) $ ( 286.7 )

Interest income on corporate funds $ ( 133.7 ) $ ( 101.5 )

Realized (gains)/losses on available-for-sale securities, net 1.4 ( 2.9 1.5 ) 1.7 5.9

Non-service components of pension income, net ( 28.3 ) ( 31.3 5.1 ) ( 34.2 7.1 )

Net (gain)/loss on ADP Ventures' investments ( 8.4 2.9 )

Other (income)/expense, net $ ( 140.3 ) $ ( 110.1 )

Note 6: Corporate Investments and Funds Held for Clients 90 changes

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

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Money market securities, cash and other cash equivalents, and restricted cash $ 10,705.4 $ 10,705.4

Available-for-sale securities:

Corporate bonds 18,790.1 1.1 ( 757.1 ) 18,034.1

U.S. Treasury securities 10,990.5 1.6 ( 226.1 ) 10,766.0

Asset-backed securities 2,756.7 1.4 ( 51.2 ) 2,706.9

Canadian government obligations and

Canadian government agency obligations 1,953.4 2.5 ( 52.2 ) 1,903.7

Canadian provincial bonds 1,183.2 2.6 ( 39.9 ) 1,145.9

U.S. government agency securities 925.2 ( 96.1 ) 829.1

Municipal Bonds 815.2 0.3 ( 23.2 ) 792.3

Other securities 1,470.8 ( 76.5 ) 1,394.3

Total available-for-sale securities 38,885.1 9.5 ( 1,322.3 ) 37,572.3

Total corporate investments and funds held for clients $ 49,590.5 $ 9.5 $ ( 1,322.3 ) $ 48,277.7 (a) Included within available-for-sale securities are corporate investments with fair values of $ 245.2 million and funds held for clients with fair values of $ 37,327.1 million. All available-for-sale securities are included in Level 2 of the fair value hierarchy.

Losses Fair Value (b)

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Money market securities, cash and other cash equivalents $ 5,054.6 $ $ $ 5,054.6

Available-for-sale securities:

Corporate bonds 17,515.2 108.7 ( 420.2 ) 17,203.7

U.S. Treasury securities 8,416.8 85.6 ( 43.7 ) 8,458.7

Total corporate investments and funds held for clients $ 48,785.7 $ 115.2 $ ( 574.4 ) $ 48,326.5 (A) (b) Included within available-for-sale securities are corporate investments with fair values of $ 138.6 million and funds held for clients with fair values of $ 37,562.7 million. All available-for-sale securities are were included in Level 2 of the fair value hierarchy.

For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 Summary of Significant Accounting Policies in the Company's Annual Report on Form 10-K for fiscal 2026. The Company concurred with and did not adjust the prices obtained from the independent pricing service. The Company had no available-for-sale securities included in Level 1 or Level 3 at September 30, 2026.

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of September 30, 2026, are as follows:

Securities in unrealized loss position less than 12 months Securities in unrealized loss position greater than 12 months Total

Losses Fair Value (B) Gross

Losses Fair Value Gross

Corporate bonds $ ( 436.9 ) $ 12,482.6 $ ( 320.2 ) $ 5,203.3 $ ( 757.1 ) $ 17,685.9

U.S. Treasury securities ( 220.7 ) 9,458.2 ( 5.4 ) 57.4 ( 226.1 ) 9,515.6

Asset-backed securities ( 45.3 ) 2,241.6 ( 5.9 ) 168.5 ( 51.2 ) 2,410.1

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Canadian government agency obligations 1,972.0 16.4 ( 32.4 ) 1,956.0

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

U.S. government agency securities

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

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

Total available-for-sale securities 34,203.4 256.6 ( 682.3 ) 33,777.7

Total corporate investments and funds held for clients $ 39,258.0 $ 256.6 $ ( 682.3 ) $ 38,832.3 (B) Included within available-for-sale securities are corporate investments with fair values of $ 4,498.8 million and funds held for clients with fair values of $ 29,278.9 million. All available-for-sale securities were included in Level 2 of the fair value hierarchy.

For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 Summary of Significant Accounting Policies. The Company concurred with and did not adjust the prices obtained from the independent pricing service. The Company had no available-for-sale securities included in Level 1 or Level 3 at June 30, 2026.

Canadian government agency obligations ( 27.8 ) 1,204.3 ( 24.4 ) 325.2 ( 52.2 ) 1,529.5

Canadian provincial bonds ( 18.5 ) 578.0 ( 21.4 ) 375.0 ( 39.9 ) 953.0

U.S. government agency securities ( 10.5 ) 190.7 ( 85.6 ) 638.3 ( 96.1 ) 829.0

Municipal Bonds ( 22.1 ) 726.4 ( 1.1 ) 14.2 ( 23.2 ) 740.6

Other securities ( 24.4 ) 804.7 ( 52.1 ) 539.3 ( 76.5 ) 1,344.0

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Securities in unrealized loss position less than

Value Gross Unrealized

Securities in unrealized loss position less than 12 months Securities in unrealized loss position greater than 12 months Total

Losses Fair Value Gross

Losses Fair Value Gross

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Canadian government agency obligations

Canadian government agency obligations ( 2.2 ) 283.0 ( 19.8 ) 444.4 ( 22.0 ) 727.4

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U.S. government agency securities

U.S. government agency securities ( 1.3 ) 75.0 ( 69.2 ) 659.9 ( 70.5 ) 734.9

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

Securities in unrealized loss position less than

12 months Securities in unrealized loss position greater than 12 months Total

Value Gross Unrealized

Corporate bonds $ ( 5.4 ) $ 690.4 $ ( 414.8 ) $ 10,218.8 $ ( 420.2 ) $ 10,909.2 ( 0.8 ) 732.2 ( 42.9 ) 1,801.7 ( 43.7 ) 2,533.9

Canadian government obligations and

Canadian government agency obligations

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

U.S. government agency securities

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

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

At June September 30, 2026, Corporate bonds include investment-grade debt securities with a wide variety of issuers, industries, and sectors, primarily carry carrying credit ratings of A and above. and have maturities ranging from July 2026 through June 2036.

At June September 30, 2026, asset-backed securities include AAA-rated senior tranches of securities with predominately predomi nantly prime collateral of fixed-rate auto loan, credit card, and device payment plan agreement receivables with fair values of $ 968.7 1,233.7 million, $ 853.1 796.5 million, and $ 359.2 365.6 million, respectively. These securities are collateralized by the cash flows flow s of the underlying pools of receivables. The primary risk associated with these securities is the collection risk of the underlying receivables. All collateral on such asset-backed securities has performed as expected through June September 30, 2026 .

At June September 30, 2026, U.S. government agency a gency securities primarily include debt directly issued by Federal Farm Credit Banks and Federal Home Loan Banks with fair values of $ 654.0 630.6 million and $ 135.4 130.2 million, respectively. U.S. government agency securities represent senior, unsecured, non-callable debt that primarily carry ratings of Aa1 by Moody's, and AA+ by Standard & Poor's. with maturities ranging from July 2026 through January 2036.

At June September 30, 2026, other securities primarily include AA-rated United Kingdom Gilt securities of $ 737.8 million, municipal bonds, diversified with a variety of issuers, with credit ratings of A and above with fair values of $ 557.7 730.4 million, commercial mortgage-backed securities of $ 320.2 298.0 million, and AAA-rated supranational bonds of $ 230.2 227.1 million.

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September 30, June 30,

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(a) - Represents short-term marketable securities related to proceeds held from short-term U.S. commercial paper borrowings made in connection with our client funds investment strategy. Refer to Note 9 for further details.

Cash and cash equivalents $ 4,230.1 3,277.0 $ 3,347.8 4,230.1

Restricted cash (a) 22.2

Short-term marketable securities (a) 4,498.8 50.0

Long-term marketable securities (b) 195.2 138.6

Total corporate investments $ 4,368.7 3,544.4 $ 7,846.6 4,368.7

(a) Restricted cash and short-term marketable securities are included within other current assets on the Consolidated Balance Sheets.

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September 30, June 30,

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After four years 11,501.5

Restricted cash and cash equivalents held to satisfy client funds obligations $ 6,395.1 7,406.2 $ 1,706.8 6,395.1

Restricted short-term marketable securities held to satisfy client funds obligations 5,063.2 5,871.3 3,155.7

Restricted long-term marketable securities held to satisfy client funds obligations 32,263.9 31,691.4 26,123.2

Total funds held for clients $ 43,957.8 44,733.3 $ 30,985.7 43,957.8

Client funds obligations represent the Company's contractual obligations to remit funds to satisfy clients' payroll, tax, and other payee payment obligations and are recorded on the Consolidated Balance Sheets at the time that the Company impounds funds from clients. The client funds obligations represent liabilities that will be repaid within one year of the balance sheet date. The Company has reported client funds obligations as a current liability on the Consolidated Balance Sheets totaling totalin g $ 44,415.5 46,039.6 million and $ 31,343.3 44,415.5 million as of June at September 30, 2026 and 2025, June 30, 2026, respectively. The Company has classified funds held for clients as a current asset since these funds are held solely for the purposes purpose of satisfying the client funds obligations. Of the Company s funds held for clients at September 30, 2026 and June 30, 2026, $ 39,999.7 million and $ 38,969.2 million, respectively, are held in the grantor trust. The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and eliminate in consolidation.

and 10 more changes in the filing

Note 7: Leases 24 changes

The Company records leases on the Consolidated Balance Sheets as operating lease right-of-use ("ROU") assets, records the current portion of operating lease liabilities within accrued expenses and other current liabilities and, separately, records long-term operating lease liabilities. The difference between total ROU assets and total lease liabilities are is primarily attributable to prepayments of our obligations and the recognition of various lease incentives.

The Company has entered into operating lease agreements for facilities and equipment. The Company's leases have remaining lease terms of up to approximately eleven twelve years .

1 unchanged paragraph

Operating lease cost $ 124.7 $ 111.8 $ 125.0

Short-term lease cost 1.2 1.2 1.4

Variable lease cost 22.0 20.3 18.3

Total operating lease cost $ 147.9 $ 133.3 $ 144.7

Operating lease cost $ 30.5 $ 30.6

Short-term lease cost 0.2 0.3

Variable lease cost 5.5 5.7

Total operating lease cost $ 36.2 $ 36.6

1 unchanged paragraph

Cash paid for operating lease liabilities $ 157.5 $ 127.5 31.4 $ 125.5 32.2

Operating lease ROU assets obtained in exchange for new operating lease liabilities $ 133.9 $ 100.7 22.1 $ 97.4 45.4

1 unchanged paragraph

September 30, June 30,

1 unchanged paragraph

Weighted-average discount rate 3.9 4.0 % 3.6 3.9 %

Current operating lease liability $ 103.6 102.9 $ 100.8 103.6

As of June September 30, 2026, maturities of operating lease liabilities are as follows:

Twelve Nine months ending June 30, 2027 $ 112.3 86.0

Twelve months ending June 30, 2028 90.6 94.3

Twelve months ending June 30, 2029 64.4 69.2

Twelve months ending June 30, 2030 53.4 57.1

Twelve months ending June 30, 2031 44.2 47.8

Total undiscounted lease obligations 463.1 468.9

Less: Imputed interest ( 52.8 58.0 )

Net lease obligations $ 410.3 410.9

Note 8: Goodwill and Intangible Assets, net 26 changes

Balance at June 30, 2024 $ 2,348.8 $ 4.8 $ 2,353.6

Additions and other adjustments 887.0 887.0

Currency translation adjustments 32.9 32.9

Balance at June 30, 2025 $ 3,268.7 $ 4.8 $ 3,273.5

Additions and other adjustments 21.3 21.3

Currency translation adjustments ( 10.4 ) ( 10.4 )

Changes in goodwill for the years three months ended June September 30, 2026 and 2025 are as follows:

1 unchanged paragraph

Additions and other adjustments ( 0.1 ) ( 0.1 )

Currency translation adjustments ( 3.2 ) ( 3.2 )

Balance at September 30, 2026 $ 3,276.3 $ 4.8 $ 3,281.1

1 unchanged paragraph

September 30, June 30,

Software and software licenses $ 4,369.7 4,426.2 $ 4,103.6 4,369.7

Customer contracts and lists 1,515.2 1,487.0 1,429.4

Other intangibles 250.1 249.8 250.1

1 unchanged paragraph

Other intangibles ( 245.7 ) ( 243.9 )

Software and software licenses ( 3,023.4 3,084.2 ) ( 2,830.3 3,023.4 )

Customer contracts and lists ( 1,184.4 1,205.1 ) ( 1,105.6 1,184.4 )

Other intangibles ( 246.1 ) ( 245.7 )

Intangible assets, net $ 1,653.3 1,656.1 $ 1,603.0 1,653.3

Other intangibles consist primarily of purchased rights, purchased content, trademarks and trade names (acquired directly or through acquisitions). All intangible assets have finite lives and, as such, are subject to amortization. The weighted average remaining useful life of the intangible assets is 6 years ( 6 years for software and software licenses, 5 years for customer contracts and lists, and 2 years for other intangibles). Amortization of intangible assets was $ 384.8 million, $ 380.6 104.9 million and $ 371.6 95.4 million for fiscal the three months ended September 30, 2026 2025, and 2024, 2025, respectively.

1 unchanged paragraph

Twelve Nine months ending June 30, 2027 $ 424.7 330.4

Twelve months ending June 30, 2028 $ 298.7 325.4

Twelve months ending June 30, 2029 $ 261.1 275.4

Twelve months ending June 30, 2030 $ 215.7 230.6

Twelve months ending June 30, 2031 $ 176.0 190.6

Twelve months ending June 30, 2032 $ 117.9

Note 9: Short-term Financing 12 changes

Years ended June 30, 2026 2025

Weighted average interest rates 4.0 % 4.8 %

Years ended June 30, 2026 2025

Weighted average interest rates 4.1 % 4.8 %

The Company has a $ 5.7 billion, 364 -day credit agreement that matures in June 2027 with a one-year one year term-out option. The Company also has a $ 2.5 billion five-year credit facility that matures in June 2030 that contains an accordion feature under which the aggregate commitment can be increased by $ 500 million, subject to the availability of additional commitments. In addition, the Company also has a $ 3.5 billion five-year credit facility maturing in June 2031 that contains an accordion feature under which the aggregate commitment can be increased by $ 500 million, subject to the availability of additional commitments. The interest rate applicable to committed borrowings is tied to SOFR, the effective federal funds rate, or the prime rate depending on the notification provided by the Company to the syndicated financial institutions prior to borrowing. The Company is also required to pay facility fees on the credit agreements. The primary uses of the credit facilities are to provide liquidity to the commercial paper program and funding for general corporate purposes, if necessary. The Company had no borrowings through June September 30, 2026 and 2025 under the credit agreements.

The Company's U.S. short-term funding requirements related to client funds are sometimes obtained on an unsecured basis through the issuance of commercial paper, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. This commercial paper program provides for the issuance of up to $ 11.7 billion in aggregate maturity value. The Company s commercial paper program is rated A-1+ by Standard & Poor s, Prime-1 ( P-1 ) by Moody s and F1+ by Fitch. . These ratings denote the highest quality commercial paper securities. Maturities of commercial paper can range from overnight to up to 364 days. As of September 30, 2026 and June 30, 2026, the Company had no commercial paper outstanding. As of June 30, 2025, the Company had $ 4.8 billion of co mmercial paper outstanding, which was repaid in early July 2025. Details of the borrowings under the commercial paper program are as follows:

Average daily borrowings (in billions) $ 4.2 5.4 $ 4.1 4.5

Weighted average interest rates 3.7 % 4.4 %

Weighted average maturity (approximately in days) 3 2 days 2 days

The Company s U.S., Canadian and United Kingdom short-term funding requirements related to client funds obligations are sometimes obtained on a secured basis through the use of reverse repurchase agreements, which are collateralized principally by government and government agency securities, rather than liquidating previously-collected client funds that have already been invested in available-for-sale securities. These agreements generally have terms ranging from overnight to up to ten business days. As of June September 30, 2026 and 2025, June 30, 2026, the Company had $ 139.3 198.3 million and $ 38.4 139.3 million, respectively, of outstanding obligations related to reverse repurchase agreements. The Company has $ 7.5 billion available on a committed basis under the U.S. reverse repurchase agreements. Details of the reverse repurchase agreements are as follows:

Average outstanding balances (in billions) $ 3.6 5.4 $ 2.9 4.5

Weighted average interest rates 3.7 % 4.4 %

Note 10: Debt 8 changes

1 unchanged paragraph

During the fourth quarter ended June 30, 2026, the Company issued $ 1.0 billion of senior notes due in 2036 bearing a fixed interest rate of 5.00 %. In connection with the senior notes issuance, the Company also terminated several derivative contracts in place to hedge exposure in changes in benchmark interest rates for the senior notes issued with an aggregate notional amount totaling $ 1.0 billion ($ 300.0 million were entered into during the fourth quarter ended June 30, 2026, and $ 700.0 million were entered into on the day of issuance). Since these derivative contracts were classified as cash flow hedges, the unamortized gain of $ 3.7 million was deferred in accumulated other comprehensive (loss)/income and will be amortized to earnings over the life of the respective issued Note as the interest payments are made.

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

Debt instrument Effective Interest Rate June September 30, 2026 June 30, 2025 2026

5 unchanged paragraphs

Less: current portion (a) ( 1.0 14.8 ) ( 1.0 )

Less: unamortized discount and debt issuance costs ( 36.7 35.1 ) ( 27.2 36.7 )

Total long-term debt $ 4,964.1 4,965.3 $ 3,974.7 4,964.1

(a) - Current portion of long-term debt as of June September 30, 2026 is included within accrued expenses and other current liabilities on the Consolidated Balance Sheets.

1 unchanged paragraph

As of June September 30, 2026, the fair value of the Notes, based on Level 2 inputs, was $ 4,803.0 4,618.1 million. For a description of the fair value hierarchy and the Company's fair value methodologies, including the use of an independent third-party pricing service, see Note 1 Summary of Significant Accounting Policies in the Company's Annual Report on Form 10-K for fiscal 2026.

Note A: Stock-based Compensation Plans 38 changes

The Company's share-based compensation plan consists of stock options, time-based restricted stock, time-based restricted stock units, performance-based restricted stock, performance-based restricted stock units, and other stock awards. The Company also offers an employee stock purchase plan for eligible employees . Beginning in September 2022, the Company discontinued granting stock options, time-based restricted stock and performance-based restricted stock. Awards granted September 2022 and after have been grants of time-based restricted stock units and/or performance-based restricted stock units, depending on employee eligibility. Time-based restricted stock units and performance-based restricted stock units granted to employees with a home country of the United States are settled in stock, and those units granted to employees with a home country outside the United States are generally settled in cash. As of June 30, 2026, approximately 18.4 million registered shares were available for future grants, excluding the impact of performance-based restricted stock units outstanding as of June 30, 2026, from the 26.6 million shares previously authorized for issuance under the share-based compensation plan.

4 unchanged paragraphs

The following table represents stock-based compensation expense and related income tax benefits in each of fiscal 2026, 2025, and 2024, respectively:

Years ended June 30, 2026 2025 2024

Operating expenses $ 32.9 $ 36.0 $ 30.0

Selling, general, and administrative expenses 176.0 193.7 179.5

Research and development 33.7 36.4 34.0

Total pretax stock-based compensation expense $ 242.6 $ 266.1 $ 243.5

Income tax benefit $ 60.0 $ 66.0 $ 60.2

As of June 30, 2026, the total remaining unrecognized compensation cost related to unvested restricted stock units amounted to $ 216.1 million, which will be amortized over the weighted-average remaining requisite service period of 1.7 years. As of June 30, 2026, there were no remaining unrecognized compensation costs related to restricted stock and stock options, as these awards were fully vested.

Employee Stock Purchase Plan. The Company offers an employee stock purchase plan that allows eligible employees to purchase shares of common stock at a price equal to 95 % of the market value of the Company's common stock on the last day of the offering period. This plan has been deemed non-compensatory and, therefore, no compensation expense has been recorded. As of June 30, 2026, approximately 4.3 million shares were available for future issuances from the 70.0 million shares previously authorized for issuance under the employee stock purchase plan.

The Company currently utilizes treasury stock to satisfy stock option exercises and issuances related to restricted stock units and the Company's employee stock purchase plan. From time to time, the Company may repurchase shares of its common stock under its authorized share repurchase program. The Company repurchased 8.6 2.9 million shares in fiscal 2026 as compared to 4.4 and 1.2 million shares repurchased in fiscal the three months ended September 30, 2026 and 2025, respectively. The Company considers several factors in determining when to execute share repurchases, including, among other things, actual and potential acquisition activity, cash balances and cash flows, issuances due to employee benefit plan activity, and market conditions. Cash payments related to the settlement of vested time-based restricted stock units and performance-based restricted stock units were approximately $ 26.0 million, $ 24.0 million, and $ 24.1 million during fiscal years 2026, 2025, and 2024, respectively.

The following table represents pre-tax stock-based compensation expense for the three months ended September 30, 2026 and 2025, respectively:

Operating expenses $ 10.4 $ 8.6

Selling, general and administrative expenses 47.0 41.4

Research and development 9.8 8.7

Total stock-based compensation expense $ 67.2 $ 58.7

In fiscal During the three months ended September 30, 2026, the following activity occurred under the Company s existing plans:

1 unchanged paragraph

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

Options exercised ( 199 ) $ 167

Options exercisable at June 30, 2026 836 $ 163

The aggregate intrinsic value of outstanding and exercisable stock options as of June 30, 2026 was $ 50.5 million with a remaining life of 3 years. The aggregate intrinsic value for stock options exercised in fiscal 2026, 2025, and 2024 was $ 20.6 million, $ 134.0 million, and $ 63.2 million, respectively.

Options outstanding at June 30, July 1, 2026 836 $ 163

Options exercised ( 91 ) $ 152

Options outstanding at September 30, 2026 745 $ 165

1 unchanged paragraph

Restricted units outstanding at July 1, 2025 1,174 2026 1,165

Restricted units granted 627

Restricted units vested ( 576 )

Restricted units forfeited ( 60 )

Restricted units outstanding at June September 30, 2026 1,165 1,288

1 unchanged paragraph

The weighted average fair values of shares/units granted were as follows:

Years ended June 30, 2026 2025 2024

Performance-based restricted shares/units $ 299.31 $ 283.84 $ 262.56

Time-based restricted shares/units $ 301.02 $ 277.10 $ 255.29

Restricted units outstanding at July 1, 2025 778 2026 785

Restricted units granted 405

Restricted units vested ( 372 )

Restricted units forfeited ( 26 )

Restricted units outstanding at June September 30, 2026 785 882

Note B: Pension Plans 96 changes

The Company has a defined benefit cash balance pension plan. The U.S. pension plan, which is currently closed to new entrants, was frozen effective July 1, 2020. As of July 1, 2020 and onward, participants will retain their accrued benefits and will not accrue any future benefits due to pay and/or service. The plan interest credit rate varies from year-to-year based on the ten-year U.S. Treasury rate. The Company's policy is to make contributions within the range determined by generally accepted actuarial principles.

The Company also has various retirement plans for its non-U.S. employees and maintains a Supplemental Officers Retirement Plan ( SORP ). The SORP is a defined benefit plan pursuant to which the Company pays supplemental pension benefits to certain corporate officers upon retirement based upon the officers' years of service and compensation. The SORP, which is currently closed to new entrants, was frozen effective July 1, 2019, with no future accruals due to pay and/or service.

A June 30 measurement date was used in determining the Company's benefit obligations and fair value of plan assets.

The Company is required to (a) recognize in its Consolidated Balance Sheets an asset for a plan's net overfunded status or a liability for a plan's net underfunded status, (b) measure a plan's assets and its obligations that determine its funded status as of the end of the employer's fiscal year, and (c) recognize changes in the funded status of a defined benefit plan in the year in which the changes occur in accumulated other comprehensive income (loss).

The Company's pension plans' funded status as of June 30, 2026 and 2025 is as follows:

Change in plan assets:

Fair value of plan assets at beginning of year $ 1,938.2 $ 1,879.6

Actual return on plan assets 151.6 147.7

Employer contributions 17.8 20.1

Currency translation adjustments ( 3.5 ) 3.7

Benefits paid ( 118.9 ) ( 112.9 )

Fair value of plan assets at end of year $ 1,985.2 $ 1,938.2

Change in benefit obligation:

Benefit obligation at beginning of year $ 1,718.6 $ 1,706.2

Service cost 8.1 6.0

Interest cost 86.9 87.4

Actuarial loss/(gain) (a) ( 28.3 ) 26.0

Currency translation adjustments ( 3.0 ) 5.9

Curtailments and special termination benefits ( 0.5 ) ( 0.3 )

Benefits paid ( 118.4 ) ( 112.6 )

Projected benefit obligation at end of year $ 1,663.4 $ 1,718.6

Funded status - plan assets less benefit obligations $ 321.8 $ 219.6 (a) The actuarial gain for fiscal 2026 was primarily due to changes in the discount rate.

The amounts recognized on the Consolidated Balance Sheets as of June 30, 2026 and 2025 consisted of:

Noncurrent assets $ 431.1 $ 334.2

Current liabilities ( 6.5 ) ( 5.9 )

Noncurrent liabilities ( 102.8 ) ( 108.7 )

Net amount recognized $ 321.8 $ 219.6

The accumulated benefit obligation for all defined benefit pension plans was $ 1,638.0 million and $ 1,694.9 million at June 30, 2026 and 2025, respectively.

The Company's pension plans with projected benefit obligations in excess of plan assets as of June 30, 2026 and 2025 had the following projected benefit obligation and fair value of plan assets:

Projected benefit obligation $ 154.1 $ 151.3

Fair value of plan assets $ 44.8 $ 36.7

The Company's pension plans with accumulated benefit obligations in excess of plan assets as of June 30, 2026 and 2025 had the following accumulated benefit obligation and fair value of plan assets:

Accumulated benefit obligation $ 108.3 $ 107.9

Fair value of plan assets $ 11.6 $ 9.2

1 unchanged paragraph

Interest cost on projected benefits 86.9 87.4 84.6

and 61 more changes in the filing

Note 12: Income Taxes 86 changes

and 86 more changes in the filing

Note 13: Commitments and Contingencies 1 change

3 unchanged paragraphs

and 1 more change in the filing

Forward-looking statements 205 changes

3 unchanged paragraphs

1 unchanged paragraph

1 unchanged paragraph

2 unchanged paragraphs

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

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2 unchanged paragraphs

1 unchanged paragraph

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1 unchanged paragraph

10 unchanged paragraphs

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

1 unchanged paragraph

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2 unchanged paragraphs

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and 205 more changes in the filing

Market risk 38 changes

4 unchanged paragraphs

2 unchanged paragraphs

1 unchanged paragraph

1 unchanged paragraph

2 unchanged paragraphs

1 unchanged paragraph

and 38 more changes in the filing

Controls and procedures 28 changes

and 28 more changes in the filing

Legal proceedings 2 changes

and 2 more changes in the filing

Risk factors 54 changes

and 54 more changes in the filing

Other information 32 changes

and 32 more changes in the filing