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. Basis for Opinion 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. 42 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. 43 /s/ Deloitte & Touche LLP Morristown, New Jersey August 5, 2026 We have served as the Company’s auditor since 1968. 44 Automatic Data Processing, Inc. and Subsidiaries Statements of Consolidated Earnings (In millions, except per share amounts) Years ended June 30, 2026 2025 2024 REVENUES: Revenues, other than interest on funds held 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 EXPENSES: Costs of revenues: 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. See notes to the Consolidated Financial Statements. 45 Automatic Data Processing, Inc. and Subsidiaries Statements of Consolidated Comprehensive Income (In millions) Years ended June 30, 2026 2025 2024 Net earnings $ 4,413.5 $ 4,079.7 $ 3,752.0 Other comprehensive income/(loss): Currency translation adjustments (53.2) 89.0 (38.0) Unrealized net gains/(losses) on available-for-sale securities (30.6) 1,088.4 685.2 Tax effect 8.5 (250.7) (162.2) Reclassification of realized net (gains)/losses on available-for-sale securities to net earnings (2.9) 1.7 5.9 Tax effect 0.7 (0.3) (1.3) Unrealized net gains/(losses) on cash flow hedging activities 3.7 (15.6) — Tax effect (0.9) 3.8 — Amortization of unrealized net (gains)/losses on cash flow hedging activities 6.0 5.4 4.4 Tax effect (1.5) (1.3) (1.1) Pension net gains/(losses) arising during the year 63.9 8.5 5.6 Tax effect (15.8) (2.1) (1.1) Reclassification of pension liability adjustment to net earnings 4.4 (2.4) 0.1 Tax effect (1.0) 0.5 — Other comprehensive income/(loss), net of tax (18.7) 924.9 497.5 Comprehensive income $ 4,394.8 $ 5,004.6 $ 4,249.5 See notes to the Consolidated Financial Statements. 46 Automatic Data Processing, Inc. and Subsidiaries Consolidated Balance Sheets (In millions, except per share amounts) June 30, 2026 2025 Assets Current assets: Cash and cash equivalents $ 4,230.1 $ 3,347.8 Short-term marketable securities — 4,498.8 Accounts receivable, net of allowance for doubtful accounts of $44.5 and $47.1, respectively 3,521.1 3,579.1 Other current assets 852.1 840.8 Total current assets before funds held for clients 8,603.3 12,266.5 Funds held for clients 43,957.8 30,985.7 Total current assets 52,561.1 43,252.2 Property, plant and equipment, net 641.3 655.4 Operating lease right-of-use assets 388.6 374.1 Deferred contract costs 3,244.1 3,154.1 Other assets 1,420.5 1,057.0 Goodwill 3,284.4 3,273.5 Intangible assets, net 1,653.3 1,603.0 Total assets $ 63,193.3 $ 53,369.3 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 162.5 $ 169.1 Accrued expenses and other current liabilities 3,218.5 3,092.4 Accrued payroll and payroll-related expenses 1,039.4 973.1 Dividends payable 671.9 620.6 Short-term deferred revenues 267.5 262.8 Obligations under reverse repurchase agreements (A) 139.3 38.4 Obligations under commercial paper borrowings — 4,769.5 Income taxes payable 110.3 9.1 Total current liabilities before client funds obligations 5,609.4 9,935.0 Client funds obligations 44,415.5 31,343.3 Total current liabilities 50,024.9 41,278.3 Long-term debt 4,964.1 3,974.7 Operating lease liabilities 306.7 321.2 Other liabilities 1,141.4 1,058.3 Deferred income taxes 339.1 163.6 Long-term deferred revenues 385.9 385.2 Total liabilities 57,162.1 47,181.3 Commitments and Contingencies (Note 13) Stockholders' equity: Preferred stock, $1.00 par value: Authorized, 0.3 shares; issued, none — — Common stock, $0.10 par value: authorized,1,000.0 shares; issued, 638.7 shares at June 30, 2026 and June 30, 2025; outstanding, 397.8 and 405.3 shares at June 30, 2026 and June 30, 2025, respectively 63.9 63.9 Capital in excess of par value 3,067.9 2,788.3 Retained earnings 26,967.4 25,240.6 Treasury stock - at cost: 240.9 and 233.4 shares at June 30, 2026 and June 30, 2025, respectively (23,165.9) (21,021.4) Accumulated other comprehensive (loss)/income (902.1) (883.4) Total stockholders’ equity 6,031.2 6,188.0 Total liabilities and stockholders’ equity $ 63,193.3 $ 53,369.3 (A) As of June 30, 2026, $138.6 million of long-term marketable securities, and $0.7 million of cash and cash equivalents have been pledged as collateral under the Company's reverse repurchase agreements. As of June 30, 2025, $38.4 million of short-term marketable securities have been pledged as collateral under the Company's reverse repurchase agreements (see Note 9). See notes to the Consolidated Financial Statements. 47 Automatic Data Processing, Inc. and Subsidiaries Statements of Consolidated Stockholders' Equity (In millions, except per share amounts) Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock Accumulated Other Comprehensive Income/(Loss) Shares Amount Balance at June 30, 2023 638.7 $ 63.9 $ 2,102.3 $ 22,118.0 $ (18,469.3) $ (2,305.8) Net earnings — — — 3,752.0 — — Other comprehensive income — — — — — 497.5 Stock-based compensation expense — — 219.3 — — — Issuances relating to stock compensation plans — — 85.3 — 63.1 — Treasury stock acquired (5.1 million shares repurchased) — — — — (1,330.9) — Dividends ($5.45 per share) — — — (2,247.8) — — Balance at June 30, 2024 638.7 $ 63.9 $ 2,406.9 $ 23,622.2 $ (19,737.1) $ (1,808.3) Net earnings — — — 4,079.7 — — Other comprehensive income — — — — — 924.9 Stock-based compensation expense — — 234.9 — — — Issuances relating to stock compensation plans — — 146.5 — 73.0 — Treasury stock acquired (4.4 million shares repurchased) — — — — (1,357.3) — Dividends ($6.02 per share) — — — (2,461.3) — — Balance at June 30, 2025 638.7 $ 63.9 $ 2,788.3 $ 25,240.6 $ (21,021.4) $ (883.4) Net earnings — — — 4,413.5 — — Other comprehensive loss — — — — — (18.7) Stock-based compensation expense — — 223.3 — — — Issuances relating to stock compensation plans — — 56.3 — 34.0 — Treasury stock acquired (8.6 million shares repurchased) — — — — (2,178.5) — Dividends ($6.64 per share) — — — (2,686.7) — — Balance at June 30, 2026 638.7 $ 63.9 $ 3,067.9 $ 26,967.4 $ (23,165.9) $ (902.1) See notes to the Consolidated Financial Statements 48 Automatic Data Processing, Inc . and Subsidiaries Statements of Consolidated Cash Flows (In millions) Years ended June 30, 2026 2025 2024 Cash Flows from Operating Activities: Net earnings $ 4,413.5 $ 4,079.7 $ 3,752.0 Adjustments to reconcile net earnings to cash flows provided by operating activities: Depreciation and amortization 585.9 582.4 561.9 Amortization of deferred contract costs 1,200.5 1,145.3 1,067.6 Deferred income taxes 156.4 37.0 (37.4) Stock-based compensation expense 242.6 266.1 243.5 Bad debt expense 47.5 53.2 54.6 Net pension (income)/expense (15.4) (19.7) (22.9) Net accretion of discounts and amortization of premiums on available-for-sale securities (88.2) (72.2) (42.6) Other 4.2 13.4 (1.7) Changes in operating assets and liabilities: (Increase)/decrease in accounts receivable 1.0 (146.6) (483.7) Increase in deferred contract costs (1,307.9) (1,290.3) (1,271.2) Increase in other assets (204.5) (59.8) (157.2) Increase/(decrease) in accounts payable (4.5) 60.6 1.8 Increase in accrued expenses and other liabilities 410.1 290.6 492.9 Net cash flows provided by operating activities 5,441.2 4,939.7 4,157.6 Cash Flows from Investing Activities: Purchases of corporate and client funds marketable securities (12,359.7) (7,857.9) (6,835.3) Proceeds from the sales and maturities of corporate and client funds marketable securities 8,344.7 6,539.1 6,039.5 Capital expenditures (196.6) (168.7) (208.4) Additions to intangibles (468.5) (378.3) (355.0) Acquisitions of businesses, net of cash acquired (22.8) (1,165.1) (33.6) Proceeds from the sale of property, plant, and equipment and other assets — 10.8 28.3 Other (10.9) (14.9) (24.5) Net cash flows used in investing activities (4,713.8) (3,035.0) (1,389.0) Cash Flows from Financing Activities: Net increase/(decrease) in client funds obligations 13,242.6 (8,274.0) 1,014.1 Net cash (distributed)/received from the Internal Revenue Service 24.0 (552.2) 602.7 Payments of debt (1.1) (1,001.2) (0.9) Proceeds from the issuance of debt 985.7 1,980.3 — Settlement of cash flow hedges 3.7 (15.6) — Repurchases of common stock (2,083.3) (1,280.5) (1,231.7) Net (repurchases)/proceeds from stock-based compensation plans and stock purchase plan (1.0) 131.0 47.2 Dividends paid (2,626.3) (2,398.9) (2,183.1) Net (payments)/proceeds related to reverse repurchase agreements 106.2 (331.8) 320.0 Net (payments)/proceeds from issuance of commercial paper (4,769.5) 4,769.5 — Net cash flows provided by/(used in) financing activities 4,881.0 (6,973.4) (1,431.7) Effect of exchange rate changes on cash, cash equivalents, restricted cash, and restricted cash equivalents (37.8) 37.3 (22.4) Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents 5,570.6 (5,031.4) 1,314.5 Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year 5,054.6 10,086.0 8,771.5 Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of year $ 10,625.2 $ 5,054.6 $ 10,086.0 Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets Cash and cash equivalents $ 4,230.1 $ 3,347.8 $ 2,913.4 Restricted cash and restricted cash equivalents included in funds held for clients (A) 6,395.1 1,706.8 7,172.6 Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 10,625.2 $ 5,054.6 $ 10,086.0 Supplemental disclosures of cash flow information: Cash paid for interest $ 439.6 $ 426.8 $ 353.9 Cash paid for income taxes, net of income tax refunds $ 1,006.7 $ 1,198.0 $ 1,185.2 (A) See Note 5 for a reconciliation of restricted cash and restricted cash equivalents in funds held for clients on the Consolidated Balance Sheets. See notes to the Consolidated Financial Statements. 49 Automatic Data Processing, Inc. and Subsidiaries Notes to the Consolidated Financial Statements (Tabular dollars in millions, except per share amounts or where otherwise stated) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Basis of Preparation. The accompanying Consolidated Financial Statements and footnotes thereto of Automatic Data Processing, Inc., its subsidiaries and variable interest entity (“ADP” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Intercompany balances and transactions have been eliminated in consolidation. The Company has a grantor trust, which holds the majority of the funds provided by its clients pending remittance to employees of those clients, tax authorities, and other payees. The Company is the sole beneficial owner of the trust. The trust meets the criteria in Accounting Standards Codification (“ASC”) 810, “Consolidation” to be characterized as a variable interest entity (“VIE”). The Company has determined that it has a controlling financial interest in the trust because it has both (1) the power to direct the activities that most significantly impact the economic performance of the trust (including the power to make all investment decisions for the trust) and (2) the right to receive benefits that could potentially be significant to the trust (in the form of investment returns) and therefore, consolidates the trust. Further information on these funds and the Company’s obligations to remit to its clients’ employees, tax authorities, and other payees is provided in Note 5, “Corporate Investments and Funds Held for Clients.” The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the assets, liabilities, revenues, expenses, and other comprehensive income that are reported in the Consolidated Financial Statements and footnotes thereto. Actual results may differ from those estimates. Certain amounts from the comparative financial statements have been reclassified in order to conform to the current year's presentation. B. Description of Business. The Company is a provider of cloud-based Human Capital Management (“HCM”) solutions. The Company classifies its operations into the following two reportable segments: Employer Services and Professional Employer Organization (“PEO”) Services. C. Revenue Recognition. Revenues are primarily attributable to fees for providing services (e.g., Employer Services' payroll processing fees), interest on funds held for clients, payroll tax filing funds, other Employer Services' client-related funds, and fees charged to implement clients on the Company's solutions. The Company enters into agreements for a fixed fee per transaction (e.g., number of payees). The Company enters into service agreements with clients that include anywhere from one service to a full suite of services. The Company’s agreements vary in duration having a legally enforceable term of 30 days to 7 years. The performance obligations in the agreements are generally combined into one performance obligation, as they are considered a series of distinct services, and are satisfied over time because the client simultaneously receives and consumes the benefits provided as the Company performs the services. The Company uses the output method based on a fixed fee per employee serviced to recognize revenue, as the value to the client of the goods or services transferred to date (e.g., number of payees) appropriately depicts our performance towards complete satisfaction of the performance obligation. The timing of revenue recognition is generally consistent with client invoicing, which occurs monthly either as services are provided or in arrears. The Company does not recognize contract assets because its right to consideration becomes unconditional at the time revenue is recognized. PEO, a component of the HR Outsourcing (“HRO”) business, provides a comprehensive human resources outsourcing solution, including offering benefits, providing workers’ compensation insurance, and administering state unemployment insurance, among other human resources functions. Amounts collected from PEO worksite employers include payroll and payroll taxes, fees for benefits, and an administrative fee that also includes payroll taxes, fees for workers’ compensation and state unemployment taxes. The payroll and payroll taxes collected from the worksite employers are presented in revenue net, as the Company does not retain risk and acts as an agent with respect to this aspect of the PEO arrangement. With respect to the payroll and payroll taxes, the PEO worksite employer is primarily responsible for providing the service and has discretion in establishing wages. The fees collected from the worksite employers for benefits (i.e., PEO zero-margin benefits pass-throughs), workers’ compensation and state unemployment taxes are presented in revenues and the associated costs of benefits, workers’ compensation and state unemployment taxes are included in operating expenses, as the Company does retain risk and acts as a 50 principal with respect to this aspect of the arrangement. With respect to these fees, the Company is primarily responsible for fulfilling the service and has discretion in establishing price. We recognize client fund interest income 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. Set up fees received from certain clients to implement the Company's solutions are considered a material right. Therefore, the Company defers revenue associated with these set up fees and records them over the period in which such clients are expected to benefit from the material right, which is approximately five to seven years. Collection of consideration the Company expects to receive to perform its services typically occurs within 30 to 60 days of billing. We assess the collectability of revenues based primarily on the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer's payment history and their intention to pay the consideration. D. Deferred Costs. Incremental Costs of Obtaining a Contract Incremental costs of obtaining a contract (e.g., sales commissions) that are expected to be recovered are capitalized and amortized on a straight-line basis over a period of three to eight years, depending on the business unit. Incremental costs of obtaining a contract include only those costs the Company incurs to obtain a contract that it would not have incurred if the contract had not been obtained. These costs are included in selling, general, and administrative expenses. Costs to fulfill a Contract The Company capitalizes costs incurred to fulfill its contracts that i) relate directly to the contract ii) are expected to generate resources that will be used to satisfy the Company's performance obligations under the contract and iii) are expected to be recovered through revenue generated under the contract. Costs incurred to implement clients on our solutions (e.g., direct labor) are capitalized and amortized on a straight-line basis over the expected client relationship period if the Company expects to recover those costs. The expected client relationship period ranges from three to eight years. These costs are included in operating expenses. The Company has estimated the amortization periods for the deferred costs by using its historical client retention by business units to estimate the pattern during which the service transfers. E. Cash and Cash Equivalents. Highly liquid investment securities with a maturity of ninety days or fewer at the time of purchase are considered cash equivalents. The fair value of our cash and cash equivalents approximates carrying value. F. Corporate Investments and Funds Held for Clients. All of the Company's marketable securities are considered to be “available-for-sale” and, accordingly, are carried on the Consolidated Balance Sheets at fair value. Unrealized gains and losses, net of the related tax effect, are excluded from earnings and are reported as a separate component of accumulated other comprehensive income (loss) on the Consolidated Balance Sheets until realized. Realized gains and losses from the sale of available-for-sale securities are aggregated and are included in other (income)/expense, net on the Statements of Consolidated Earnings. If the fair value of an available-for-sale debt security is below its amortized cost, the Company assesses whether it intends to sell the security or if it is more likely than not the Company will be required to sell the security before recovery. If either of those two conditions are met, the Company would recognize a charge in earnings equal to the entire difference between the security's amortized cost basis and its fair value. If the Company does not intend to sell a security or it is not more likely than not that it will be required to sell the security before recovery, the unrealized loss is separated into an amount representing the credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in accumulated other comprehensive income (loss). Premiums and discounts are amortized or accreted over the expected life of the related available-for-sale security as an adjustment to the yield using the effective-interest method. Dividend and interest income are recognized when earned. 51 G. Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date and is based upon the Company’s principal, or most advantageous, market for a specific asset or liability. U.S. GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows: Level 1 Fair value is determined based upon quoted prices for identical assets or liabilities that are traded in active markets. Level 2 Fair value is determined based upon inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including: · quoted prices for similar assets or liabilities in active markets; · quoted prices for identical or similar assets or liabilities in markets that are not active; · inputs other than quoted prices that are observable for the asset or liability; or · inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 Fair value is determined based upon inputs that are unobservable and reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based upon the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). The Company's corporate investments and funds held for clients (see Note 5) are measured at fair value on a recurring basis as described below. Over 99% of the Company's available-for-sale securities included in Level 2 are valued based on prices obtained from an independent pricing service. To determine the fair value of the Company's Level 2 investments, the independent pricing service uses pricing models for each asset class that are consistent with what other market participants would use, including the market approach. Inputs and assumptions to the pricing model used by the independent pricing service are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and other market-related data. Since many fixed income securities do not trade on a daily basis, the independent pricing service applies available information, as applicable, through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare valuations. For the purposes of valuing the Company’s mortgage-backed securities (that are included within Other securities in Note 5) and asset-backed securities, the independent pricing service includes additional inputs to the model such as monthly payment information, new issue data, and collateral performance. For the purposes of valuing the Company’s Municipal bonds, the independent pricing service includes quoted prices for similar assets, benchmark yield curves, and market corroborated inputs. While the Company is not provided access to the proprietary models of the third party pricing service, each quarterly reporting period, the Company reviews the inputs utilized by the independent pricing service and compares the valuations received from the independent pricing service to valuations from at least one other observable source for reasonableness. The Company has not adjusted the prices obtained from the independent pricing service and the Company believes the prices received from the independent pricing service are representative of the prices that would be received to sell the assets at the measurement date (exit price). The Company had no available-for-sale securities included in Level 1 and Level 3 at June 30, 2026. The Company issued five series of fixed-rate notes with staggered maturities of 7 and 10-years totaling $5.0 billion (collectively the “Notes”). The fair value of the Notes are estimated in Note 10 utilizing a variety of inputs obtained from an independent pricing service, including benchmark yields, reported trades, non-binding broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. The Notes are senior unsecured obligations, and interest is payable in arrears, semi-annually. The Company reviews the values generated by the independent pricing service for reasonableness by comparing the valuations received from the independent pricing service to valuations from at least one other observable source. The Company has not adjusted the prices obtained from the independent pricing service. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the fair value hierarchy. In certain instances, the inputs used to measure fair value may meet the definition of more than one level of the fair value hierarchy. The significant input with the lowest level priority is used to determine the applicable level in the fair value hierarchy. H. Property, Plant and Equipment. Property, plant and equipment is stated at cost less accumulated depreciation on the Consolidated Balance Sheets. Depreciation is recognized over the estimated useful lives of the assets using the straight-line method. Leasehold improvements are amortized over the shorter of the term of the lease or the estimated useful lives of the 52 improvements. The estimated useful lives of assets are primarily as follows: Data processing equipment 3 to 10 years Buildings 20 to 40 years Furniture and fixtures 4 to 7 years I. Leases. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. The lease liabilities are measured by discounting future lease payments at the Company’s collateralized incremental borrowing rate for financing instruments of a similar term, unless the implicit rate is readily determinable. ROU assets also include adjustments related to prepaid or deferred lease payments and lease incentives. Lease ROU assets are amortized over the life of the lease and assessed for impairment in the event there is a modification or an early termination. J. Goodwill. Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is tested annually for impairment or more frequently when an event or circumstance indicates that goodwill might be impaired. The Company's annual goodwill impairment assessment as of June 30, 2026 was performed for all reporting units using a quantitative approach by comparing the fair value of each reporting unit to its carrying value. We estimated the fair value of each reporting unit using, as appropriate, the income approach, which is derived using the present value of future cash flows discounted at a risk-adjusted weighted-average cost of capital, and the market approach, which is based upon using market multiples of companies in similar lines of business. Significant assumptions used in determining the fair value of our reporting units include projected revenue growth rates, profitability projections, working capital assumptions, the weighted average cost of capital, the determination of appropriate market comparison companies, and terminal growth rates. Several of these 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. As such, the determination of fair value requires management to make significant estimates and assumptions related to forecasts of future revenue and operating margins. Based upon the quantitative assessment, the Company has concluded that goodwill is not impaired. K. Impairment of Long-Lived Assets. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. L. Foreign Currency. The net assets of the Company's foreign subsidiaries are translated into U.S. dollars based on exchange rates in effect for each period, and revenues and expenses are translated at average exchange rates in the periods. Gains or losses from balance sheet translation are included in accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. Currency transaction gains or losses, which are included in the results of operations, are not significant for all periods presented. M. Foreign Currency Risk Management Programs and Derivative Financial Instruments. The Company transacts business in various foreign jurisdictions and is therefore exposed to market risk from changes in foreign currency exchange rates that could impact its consolidated results of operations, financial position, or cash flows. The Company manages its exposure to these market risks through its regular operating and financing activities and, when deemed appropriate, through the use of derivative financial instruments. The Company does not use derivative financial instruments for trading purposes. 53 N. Earnings per Share (“EPS”). The Company computes EPS in accordance with ASC 260. The calculations of basic and diluted EPS are as follows: Years ended June 30, Basic Effect of Employee Stock Option Shares Effect of Employee Restricted Stock Shares Diluted 2026 Net earnings $ 4,413.5 $ 4,413.5 Weighted average shares (in millions) 402.3 0.3 0.7 403.3 EPS $ 10.97 $ 10.94 2025 Net earnings $ 4,079.7 $ 4,079.7 Weighted average shares (in millions) 407.1 0.6 1.0 408.7 EPS $ 10.02 $ 9.98 2024 Net earnings $ 3,752.0 $ 3,752.0 Weighted average shares (in millions) 410.6 0.7 0.9 412.2 EPS $ 9.14 $ 9.10 Shares that could potentially dilute basic EPS in the future include outstanding share-based compensation awards, which are discussed in Note 11. For fiscal 2026, there were 0.6 million shares excluded from the calculation of diluted EPS because their inclusion would have been anti-dilutive, and for fiscal 2025 and 2024, there were no shares excluded from the calculation of diluted EPS. O. Stock-Based Compensation. The Company recognizes stock-based compensation expense in net earnings based on the fair value of the award on the date of the grant, and in the case of international units settled in cash, adjusts this fair value based on changes in the Company's stock price during the vesting period. Time-based restricted stock units are valued based on the closing price of the Company's common stock on the date of the grant and, in the case of performance based restricted stock units, are valued based on the grant date fair value of such awards and are adjusted for changes to probabilities of achieving performance targets. See Note 11 for additional information on the Company's stock-based compensation programs. P. Internal Use Software. Expenditures for major software purchases and software developed or obtained for internal use are capitalized and amortized generally over a three to five-year period on a straight-line basis. Software developed as part of the Company's next-generation platforms are depreciated over ten years. The Company begins to capitalize costs incurred for computer software developed for internal use when the preliminary development efforts are successfully completed, management has authorized and committed to funding the project, and it is probable that the project will be completed and the software will be used as intended. Capitalization ceases when a computer software project is substantially complete and ready for its intended use. The Company's policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, the Company also capitalizes certain payroll and payroll-related costs for employees who are directly associated with internal use computer software projects. The amount of capitalizable payroll costs with respect to these employees is limited to the time directly spent on such projects. Costs associated with preliminary project stage activities, training, maintenance, and all other post-implementation stage activities are expensed as incurred. The Company also expenses internal costs related to minor upgrades and enhancements, as it is impractical to separate these costs from normal maintenance activities. Fees related to cloud-based subscriptions for which the Company has the right to take possession of the software at any time during the hosting period (without significant penalty) and can run the software on internal hardware, or through contract with a third party vendor to host the software, is recognized as an intangible asset and capitalized following the Internal Use Software 54 guidance under ASC 350-40. Subscriptions where the Company accesses the software through the cloud but cannot take possession of the software during the hosting period is treated as a service contract, and as such hosting fees are expensed. Q. Acquisitions. Assets acquired and liabilities assumed in business combinations are recorded on the Company’s Consolidated Balance Sheets as of the respective acquisition dates based upon their estimated fair values at such dates. The results of operations of businesses acquired by the Company are included in the Statements of Consolidated Earnings since their respective dates of acquisition. The excess of the purchase price over the estimated fair values of the underlying assets acquired and liabilities assumed is allocated to goodwill. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions and subject to revision when the Company receives final information, including appraisals and other analysis. Accordingly, the measurement period for such purchase price allocations will end when the information, or the facts and circumstances, becomes available, but will not exceed twelve months. R. Income Taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity's financial statements or tax returns. Judgment is required in addressing the future tax consequences of events that have been recognized in our Consolidated Financial Statements or tax returns (e.g., realization of deferred tax assets, changes in tax laws or interpretations thereof). A change in the assessment of the outcomes of such matters could materially impact our Consolidated Financial Statements. There is a financial statement recognition threshold and measurement attribute for tax positions taken or expected to be taken in a tax return. Specifically, the likelihood of an entity's tax benefits being sustained must be “more likely than not,” assuming that these positions will be examined by tax authorities with full knowledge of all relevant information prior to recording the related tax benefit in the financial statements. If a tax position drops below the “more likely than not” standard, the benefit can no longer be recognized. Assumptions, judgment, and the use of estimates are required in determining if the “more likely than not” standard has been met when developing the provision for income taxes. As of June 30, 2026 and 2025, the Company's liabilities for unrecognized tax benefits, which include interest and penalties, were $152.5 million and $163.0 million, respectively. S. Workers’ Compensation Costs. The Company employs a third-party actuary to assist in determining the estimated claim liability related to workers’ compensation coverage for PEO Services worksite employees. In estimating ultimate loss rates, we utilize historical loss experience, exposure data, and actuarial judgment, together with a range of inputs which are primarily based upon the worksite employee's job responsibilities, their location, the historical frequency and severity of workers’ compensation claims, and an estimate of future cost trends. For each reporting period, changes in the actuarial assumptions resulting from changes in actual claims experience and other trends are incorporated into our workers’ compensation claims cost estimates. PEO Services has secured a workers’ compensation and insurance policy that caps the exposure for each claim at $1 million per occurrence and has also secured aggregate stop loss insurance that caps aggregate losses at a certain level in the year ended June 30, 2012 and prior from an admitted and licensed insurance company of AIG. The Company has obtained approximately $390 million of irrevocable standby letters of credit in favor of licensed insurance companies of AIG to secure TotalSource workers’ compensation obligations if ADP were to fail to reimburse AIG for workers’ compensation payments. The Company had no drawdowns during June 30, 2026 and 2025 under the letters of credit. Additionally, starting in the year ended June 30, 2013, ADP Indemnity paid premiums to enter into reinsurance arrangements with ACE American Insurance Company, a wholly-owned subsidiary of Chubb Limited, to cover substantially all losses incurred by the Company up to $1 million per occurrence related to workers’ compensation deductible reimbursement insurance protection for PEO services worksite employees. Each of these reinsurance arrangements limit our overall exposure incurred up to a certain limit. The Company believes the likelihood of ultimate losses exceeding this limit is remote. ADP Indemnity paid a premium of $278.0 million to enter into a reinsurance arrangement with Chubb Limited to cover substantially all losses incurred by ADP Indemnity for the fiscal 2026 policy year up to $1 million per occurrence. ADP Indemnity paid a premium of $327.8 million in July 2026 to enter into a reinsurance arrangement to cover substantially all losses for the year ending June 30, 2027 ("fiscal 2027") policy year on terms substantially similar to the fiscal 2026 policy. T. Contingencies. In the normal course of business, the Company is subject to loss contingencies, such as claims and assessments arising from litigation and other legal proceedings, contractual indemnities, and tax matters. Accruals for loss contingencies are recorded when the Company determines that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. If the estimate of the amount of the loss is a range and some amount within the range appears to be a better estimate than any other amount within the range, that amount is accrued as a liability. If no amount within the range is a better estimate than any other amount, the minimum amount of the range is accrued as a liability. These accruals are adjusted periodically as assessments change or additional information becomes available. Loss contingencies are included in selling, general, and administrative expenses. 55 If no accrual is made for a loss contingency because the amount of loss cannot be reasonably estimated, the Company will disclose material contingent liabilities when there is at least a reasonable possibility that a loss or an additional loss may have been incurred. Legal fees and other costs related to litigation and other legal proceedings or services are expensed as incurred and are included in selling, general, and administrative expenses. Any claim for insurance recovery is recognized only when realization becomes probable. U. Recently Issued Accounting Pronouncements. Recently Adopted Accounting Pronouncements Effective June 30, 2026, the Company adopted Accounting Standard Update ("ASU") No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures", applying the new requirements prospectively. This update enhanced the transparency and decision usefulness of income tax disclosures. The adoption of ASU 2023-09 did not impact the Company's consolidated results of operations, financial condition, or cash flows. Refer to Note 12 for further details. Recently Issued Accounting Pronouncements Standard Description Effective Date Effect on Financial Statements or Other Significant Matters ASU 2025-06 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software This update modernizes the accounting guidance for internal-use software costs and requires capitalization of software costs to begin when (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. July 1, 2028 (fiscal 2029) The Company is assessing this guidance and has not yet determined the impact of ASU 2025-06 on its consolidated results of operations, financial condition, or cash flows. ASU 2024-03 Disaggregation of Income Statement Expenses (Subtopic 220-40) This update improves financial reporting by requiring enhanced disclosures of the expense captions in the Income Statement within the Notes to the financial statements. June 30, 2028 (fiscal 2028) The Company is assessing this guidance. The adoption will modify disclosures but will not have an impact on the Company's consolidated results of operations, financial condition, or cash flows. NOTE 2. REVENUE Based upon similar operational and economic characteristics, the Company’s revenues are disaggregated as follows: Human Capital Management (“HCM”), HR Outsourcing (“HRO”), and Global Solutions (“Global”), with separate disaggregation for PEO zero-margin benefits pass-through revenues and client fund interest revenues. The Company believes these revenue categories depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. 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. 56 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. The following tables provide details of the Company's revenues and includes a reconciliation to the Company’s reportable segments: Years Ended June 30, Types of Revenues 2026 2025 2024 HCM $ 9,110.6 $ 8,674.5 $ 8,155.7 HRO, excluding PEO zero-margin benefits pass-throughs 3,973.5 3,782.3 3,544.2 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 Reconciliation of disaggregated revenue to our reportable segments for the year ended June 30, 2026: 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 PEO zero-margin benefits pass-throughs — 4,607.3 4,607.3 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 Employer Services PEO Total HCM $ 8,684.5 $ — $ 8,684.5 HRO, excluding PEO zero-margin benefits pass-throughs 1,394.3 2,390.6 3,784.9 PEO zero-margin benefits pass-throughs — 4,289.0 4,289.0 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 57 Reconciliation of disaggregated revenue to our reportable segments for the year ended June 30, 2024: Types of Revenues Employer Services PEO Total HCM $ 8,164.2 $ — $ 8,164.2 HRO, excluding PEO zero-margin benefits pass-throughs 1,299.1 2,248.4 3,547.5 PEO zero-margin benefits pass-throughs — 3,975.9 3,975.9 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 Contract Balances The timing of revenue recognition for our HCM, HRO and Global Solutions services is generally consistent with client invoicing, which occurs monthly either as services are provided or in arrears. When invoicing occurs in arrears, our right to consideration is unconditional and arises solely from the passage of time. Accordingly, the Company does not recognize contract assets related to the timing of revenue recognition and invoicing. Changes in deferred revenue related to set up fees for the year ended June 30, 2026 were as follows: Contract Liability Contract liability, July 1, 2025 $ 520.2 Recognition of revenue included in beginning of year contract liability (139.5) Contract liability, net of revenue recognized on contracts during the year 147.5 Currency translation adjustments (2.6) Contract liability, June 30, 2026 $ 525.6 Deferred costs The balance is as follows: June 30, 2026 2025 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. NOTE 3. ACQUISITIONS In October 2024, the Company acquired WorkForce Software, a premier workforce management solutions provider that specializes in supporting large, global enterprises, utilizing cash on hand. The results of WorkForce Software are reported within the Company’s Employer Services segment. Pro forma information has not been presented because the effect of the acquisition is not material to the Company's consolidated financial results. 58 The following table reconciles the purchase price to the cash paid for the acquisition, net of cash acquired: Purchase price $ 1,170.8 Less: cash acquired (12.5) Cash paid for acquisition of business, net of cash acquired $ 1,158.3 The acquisition was accounted for using the acquisition method of accounting. The Company recognized assets acquired and liabilities assumed at their fair value as of the date of acquisition, with the excess recorded to goodwill. The purchase price allocation for WorkForce Software is as follows: Cash $ 12.5 Accounts receivable, net of allowance for doubtful accounts 20.0 Identifiable intangible assets (1) 292.0 Goodwill 885.8 Deferred income taxes, net of valuation allowance 45.9 All other assets 14.8 Total assets acquired $ 1,271.0 Deferred revenue $ 39.6 All other liabilities 60.6 Total liabilities assumed $ 100.2 Total net assets acquired $ 1,170.8 (1) Intangible assets are recorded at estimated fair value, as determined by management based on available information which includes an estimated valuation by an independent third-party. The fair values assigned to identifiable intangible assets were determined through the use of the income approach, specifically the relief from royalty and the multi-period excess earnings methods. The major assumptions used in arriving at the estimated identifiable intangible asset values included management’s estimates of future cash flows, discounted at an appropriate rate of return which are based on the weighted average cost of capital for both the Company and other market participants, projected customer attrition rates, as well as applicable royalty rates for comparable assets. The useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that are expected to contribute directly or indirectly to the future cash flows. The estimated fair value of intangible assets and related useful lives as included in the purchase price allocation include: Estimated Fair Value Estimated Useful Life (in years) Technology $ 115.0 7 Customer/Partner relationships $ 170.0 8 Tradename $ 7.0 4 The goodwill recorded as a result of the WorkForce Software transaction represents future economic benefits the Company expects to achieve as a result of the acquisition, including expected synergies along with the value of the assembled workforce. None of the goodwill resulting from the acquisition is tax deductible. 59 NOTE 4. OTHER (INCOME)/EXPENSE, NET 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) Realized (gains)/losses on available-for-sale securities, net (2.9) 1.7 5.9 Gain on sale of assets — (5.0) (17.1) Non-service components of pension income, net (28.3) (31.3) (34.2) Net (gain)/loss on ADP Ventures' investments (8.4) — — Other (income)/expense, net $ (410.6) $ (354.1) $ (286.7) NOTE 5. CORPORATE INVESTMENTS AND FUNDS HELD FOR CLIENTS Corporate investments and funds held for clients at June 30, 2026 and 2025 were as follows: June 30, 2026 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (A) Type of issue: Money market securities, cash and other cash equivalents $ 10,625.2 $ — $ — $ 10,625.2 Available-for-sale securities: Corporate bonds 18,643.3 48.1 (342.0) 18,349.4 U.S. Treasury securities 10,873.1 17.8 (57.4) 10,833.5 Asset-backed securities 2,437.3 10.4 (15.0) 2,432.7 Canadian government obligations and Canadian government agency obligations 2,055.0 13.9 (22.0) 2,046.9 Canadian provincial bonds 1,186.2 15.3 (19.6) 1,181.9 U.S. government agency securities 930.3 1.9 (70.5) 861.7 Other securities 2,035.3 7.8 (47.9) 1,995.2 Total available-for-sale securities 38,160.5 115.2 (574.4) 37,701.3 Total corporate investments and funds held for clients $ 48,785.7 $ 115.2 $ (574.4) $ 48,326.5 (A) 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 included in Level 2 of the fair value hierarchy. 60 June 30, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (B) Type of issue: 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 Canadian government obligations and 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 1,328.5 2.3 (80.0) 1,250.8 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. 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, 2026, are as follows: June 30, 2026 Securities in unrealized loss position less than 12 months Securities in unrealized loss position greater than 12 months Total Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value Corporate bonds $ (83.5) $ 7,318.7 $ (258.5) $ 6,252.1 $ (342.0) $ 13,570.8 U.S. Treasury securities (51.8) 6,176.1 (5.6) 308.2 (57.4) 6,484.3 Asset-backed securities (8.8) 992.6 (6.2) 298.1 (15.0) 1,290.7 Canadian government obligations and Canadian government agency obligations (2.2) 283.0 (19.8) 444.4 (22.0) 727.4 Canadian provincial bonds (1.4) 129.8 (18.2) 379.4 (19.6) 509.2 U.S. government agency securities (1.3) 75.0 (69.2) 659.9 (70.5) 734.9 Other securities (5.8) 834.0 (42.1) 587.5 (47.9) 1,421.5 $ (154.8) $ 15,809.2 $ (419.6) $ 8,929.6 $ (574.4) $ 24,738.8 61 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: June 30, 2025 Securities in unrealized loss position less than 12 months Securities in unrealized loss position greater than 12 months Total Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value Corporate bonds $ (5.4) $ 690.4 $ (414.8) $ 10,218.8 $ (420.2) $ 10,909.2 U.S. Treasury securities (0.8) 732.2 (42.9) 1,801.7 (43.7) 2,533.9 Canadian government obligations and Canadian government agency obligations (1.4) 219.2 (31.0) 870.2 (32.4) 1,089.4 Asset-backed securities (0.2) 101.4 (15.3) 481.4 (15.5) 582.8 U.S. government agency securities (0.1) 8.0 (79.9) 1,093.8 (80.0) 1,101.8 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 $ (10.2) $ 1,963.9 $ (672.1) $ 16,184.9 $ (682.3) $ 18,148.8 At June 30, 2026, Corporate bonds include investment-grade debt securities, with a wide variety of issuers, industries, and sectors, primarily carry credit ratings of A and above, and have maturities ranging from July 2026 through June 2036. At June 30, 2026, asset-backed securities include AAA-rated senior tranches of securities with predominately prime collateral of fixed-rate auto loan, credit card, and device payment plan agreement receivables with fair values of $968.7 million, $853.1 million, and $359.2 million, respectively. These securities are collateralized by the cash flows 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 30, 2026. At June 30, 2026, U.S. government agency securities primarily include debt directly issued by Federal Farm Credit Banks and Federal Home Loan Banks with fair values of $654.0 million and $135.4 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 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 million, commercial mortgage-backed securities of $320.2 million, and AAA-rated supranational bonds of $230.2 million. Classification of corporate investments on the Consolidated Balance Sheets is as follows: June 30, 2026 2025 Corporate investments: Cash and cash equivalents $ 4,230.1 $ 3,347.8 Short-term marketable securities (a) — 4,498.8 Long-term marketable securities (b) 138.6 — Total corporate investments $ 4,368.7 $ 7,846.6 (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. (b) - Long-term marketable securities are included within Other assets on the Consolidated Balance Sheets. Funds held for clients represent assets that, based upon the Company's intent, are restricted for use solely for the purposes of satisfying the obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on our Consolidated Balance Sheets. 62 Funds held for clients have been invested in the following categories: June 30, 2026 2025 Funds held for clients: Restricted cash and cash equivalents held to satisfy client funds obligations $ 6,395.1 $ 1,706.8 Restricted short-term marketable securities held to satisfy client funds obligations 5,871.3 3,155.7 Restricted long-term marketable securities held to satisfy client funds obligations 31,691.4 26,123.2 Total funds held for clients $ 43,957.8 $ 30,985.7 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 $44,415.5 million and $31,343.3 million as of June 30, 2026 and 2025, respectively. The Company has classified funds held for clients as a current asset since these funds are held solely for the purposes of satisfying the client funds obligations. Of the Company’s funds held for clients at June 30, 2026, $38,969.2 million are held in the grantor trust. The liabilities held within the trust are intercompany liabilities to other Company subsidiaries and eliminate in consolidation. The Company has reported the cash flows related to the purchases of corporate and client funds marketable securities and related to the proceeds from the sales and maturities of corporate and client funds marketable securities on a gross basis in the investing section of the Statements of Consolidated Cash Flows. The Company has reported the cash and cash equivalents related to client funds investments with original maturities of ninety days or less, within the beginning and ending balances of cash, cash equivalents, restricted cash, and restricted cash equivalents. The Company has reported the cash flows related to the cash received from and paid on behalf of clients on a net basis within net increase in client funds obligations in the financing activities section of the Statements of Consolidated Cash Flows. All available-for-sale securities were rated as investment grade at June 30, 2026. Expected maturities of available-for-sale securities at June 30, 2026 are as follows: One year or less $ 5,871.3 One year to two years 5,668.1 Two years to three years 6,585.0 Three years to four years 8,075.4 After four years 11,501.5 Total available-for-sale securities $ 37,701.3 NOTE 6. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment at cost and accumulated depreciation at June 30, 2026 and 2025 are as follows: June 30, 2026 2025 Property, plant and equipment: Land and buildings $ 648.4 $ 637.2 Data processing equipment 1,330.7 1,264.5 Furniture, leaseholds and other 705.3 675.7 2,684.4 2,577.4 Less: accumulated depreciation (2,043.1) (1,922.0) Property, plant and equipment, net $ 641.3 $ 655.4 Depreciation of property, plant and equipment was $201.1 million, $201.8 million, and $190.3 million for fiscal 2026, 2025 and 2024, respectively. As of June 30, 2026, the Company had certain assets classified as held for sale with a carrying value of approximately $7.0 million, which is not material for reclassification separately on the Consolidated Balance Sheet. As of June 30, 2025, the Company did not have any assets classified as held for sale. 63 NOTE 7. LEASES The Company records leases on the Consolidated Balance Sheets as operating lease 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 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 years. The components of operating lease expense were as follows: Year ended June 30, 2026 2025 2024 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 The following table provides supplemental cash flow information related to the Company's leases: Year ended June 30, 2026 2025 2024 Cash paid for operating lease liabilities $ 157.5 $ 127.5 $ 125.5 Operating lease ROU assets obtained in exchange for new operating lease liabilities $ 133.9 $ 100.7 $ 97.4 Other information related to our operating lease liabilities is as follows: June 30, June 30, 2026 2025 Weighted-average remaining lease term (in years) 6 6 Weighted-average discount rate 3.9 % 3.6 % Current operating lease liability $ 103.6 $ 100.8 As of June 30, 2026, maturities of operating lease liabilities are as follows: Twelve months ending June 30, 2027 $ 112.3 Twelve months ending June 30, 2028 90.6 Twelve months ending June 30, 2029 64.4 Twelve months ending June 30, 2030 53.4 Twelve months ending June 30, 2031 44.2 Thereafter 98.2 Total undiscounted lease obligations 463.1 Less: Imputed interest (52.8) Net lease obligations $ 410.3 64 NOTE 8. GOODWILL AND INTANGIBLE ASSETS, NET Changes in goodwill for the years ended June 30, 2026 and 2025 are as follows: Employer Services PEO Services Total 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) Balance at June 30, 2026 $ 3,279.6 $ 4.8 $ 3,284.4 Components of intangible assets, net, are as follows: June 30, 2026 2025 Intangible assets: Software and software licenses $ 4,369.7 $ 4,103.6 Customer contracts and lists 1,487.0 1,429.4 Other intangibles 250.1 249.8 6,106.8 5,782.8 Less accumulated amortization: Software and software licenses (3,023.4) (2,830.3) Customer contracts and lists (1,184.4) (1,105.6) Other intangibles (245.7) (243.9) (4,453.5) (4,179.8) Intangible assets, net $ 1,653.3 $ 1,603.0 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 million, and $371.6 million for fiscal 2026, 2025, and 2024, respectively. Estimated future amortization expenses of the Company's existing intangible assets are as follows: Amount Twelve months ending June 30, 2027 $ 424.7 Twelve months ending June 30, 2028 $ 298.7 Twelve months ending June 30, 2029 $ 261.1 Twelve months ending June 30, 2030 $ 215.7 Twelve months ending June 30, 2031 $ 176.0 NOTE 9. SHORT TERM FINANCING The Company has a $5.7 billion, 364-day credit agreement that matures in June 2027 with a 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 30, 2026 and 2025 under the credit agreements. 65 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 June 30, 2026 the Company had no commercial paper outstanding. As of June 30, 2025, the Company had $4.8 billion of commercial paper outstanding, which was repaid in early July 2025. Details of the borrowings under the commercial paper program are as follows: Years ended June 30, 2026 2025 Average daily borrowings (in billions) $ 4.2 $ 4.1 Weighted average interest rates 4.0 % 4.8 % Weighted average maturity (approximately in days) 3 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 30, 2026 and 2025, the Company had $139.3 million and $38.4 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: Years ended June 30, 2026 2025 Average outstanding balances (in billions) $ 3.6 $ 2.9 Weighted average interest rates 4.1 % 4.8 % NOTE 10. DEBT The Company issued five series of fixed-rate notes with staggered maturities of 7 and 10-years totaling $5.0 billion (collectively the “Notes”). The Notes are senior unsecured obligations, and interest is payable in arrears, semi-annually. 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. 66 The principal amounts and associated effective interest rates of the Notes and other debt as of June 30, 2026 and 2025 are as follows: Debt instrument Effective Interest Rate June 30, 2026 June 30, 2025 Fixed-rate 1.70% notes due May 15, 2028 1.85% 1,000.0 1,000.0 Fixed-rate 1.25% notes due September 1, 2030 1.83% 1,000.0 1,000.0 Fixed-rate 4.75% notes due May 8, 2032 4.95% 1,000.0 1,000.0 Fixed-rate 4.45% notes due September 9, 2034 4.75% 1,000.0 1,000.0 Fixed-rate 5.00% notes due May 7, 2036 5.14% 1,000.0 — Other 1.8 2.9 5,001.8 4,002.9 Less: current portion (a) (1.0) (1.0) Less: unamortized discount and debt issuance costs (36.7) (27.2) Total long-term debt $ 4,964.1 $ 3,974.7 (a) - Current portion of long-term debt as of June 30, 2026 is included within accrued expenses and other current liabilities on the Consolidated Balance Sheets. The effective interest rates for the Notes include the interest on the Notes and amortization of the discount and debt issuance costs. As of June 30, 2026, the fair value of the Notes, based on Level 2 inputs, was $4,803.0 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." NOTE 11. EMPLOYEE BENEFIT PLANS A. Stock-based Compensation Plans 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. •Restricted Stock. •Time-Based Restricted Stock Units. Time-based restricted stock units generally vest ratably over 3 years. Awards are generally forfeited if the employee ceases to be employed by the Company prior to vesting. Time-based restricted stock units granted to employees with a home country of the United States are settled in stock and cannot be transferred during the vesting period. Time-based restricted stock units granted to employees with a home country outside the United States are generally settled in cash and cannot be transferred during the vesting period. Compensation expense relating to the issuance of share-settled units is measured based on the fair value of the award on the grant date and recognized on a straight-line basis over the vesting period. Compensation expense relating to the issuance of cash-settled units is recorded over the vesting period and is initially based on the fair value of the award on the grant date and is subsequently remeasured at each reporting date during the vesting period based on the change in the ADP stock price. Dividend cash equivalents are paid on share-settled units, and dividend cash equivalents are not paid on cash-settled units. 67 •Performance-Based Restricted Stock Units. Performance-based restricted stock units generally vest over a one to three-year performance period and a subsequent service period of up to 38 months. Under these programs, the Company communicates “target awards” at the beginning of the performance period with possible payouts at the end of the performance period ranging from 0% to 200% of the “target awards.” Awards are generally forfeited if the employee ceases to be employed by the Company prior to vesting. Performance-based restricted stock units cannot be transferred and are settled in either cash or stock, depending on the employee's home country. Compensation expense relating to the issuance of performance-based restricted stock units settled in cash is recognized over the vesting period initially based on the fair value of the award on the grant date with subsequent adjustments to the number of units awarded during the performance period based on probable and actual performance against targets. In addition, compensation expense is remeasured at each reporting period during the vesting period based on the change in the ADP stock price. Compensation expense relating to the issuance of performance-based restricted stock units settled in stock is recorded over the vesting period based on the fair value of the award on the grant date with subsequent adjustments to the number of units awarded based on the probable and actual performance against targets. Dividend equivalents are paid on awards under the performance-based restricted stock unit program. •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 million shares in fiscal 2026 as compared to 4.4 million shares repurchased in fiscal 2025. 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 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. 68 In fiscal 2026, the following activity occurred under the Company’s existing plans: Stock Options: Number of Options (in thousands) Weighted Average Price (in dollars) Options outstanding at July 1, 2025 1,035 $ 164 Options exercised (199) $ 167 Options outstanding at June 30, 2026 836 $ 163 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. Time-Based Restricted Stock Units: Number of Units (in thousands) Restricted units outstanding at July 1, 2025 1,174 Restricted units granted 627 Restricted units vested (576) Restricted units forfeited (60) Restricted units outstanding at June 30, 2026 1,165 Performance-Based Restricted Stock Units: Number of Units (in thousands) Restricted units outstanding at July 1, 2025 778 Restricted units granted 405 Restricted units vested (372) Restricted units forfeited (26) Restricted units outstanding at June 30, 2026 785 The weighted average fair values of shares/units granted were as follows: Years ended June 30, 2026 2025 2024 (in dollars) Performance-based restricted shares/units $ 299.31 $ 283.84 $ 262.56 Time-based restricted shares/units $ 301.02 $ 277.10 $ 255.29 B. Pension Plans 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 69 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: June 30, 2026 2025 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: June 30, 2026 2025 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. 70 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: June 30, 2026 2025 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: June 30, 2026 2025 Accumulated benefit obligation $ 108.3 $ 107.9 Fair value of plan assets $ 11.6 $ 9.2 The components of net pension (income)/expense were as follows: 2026 2025 2024 Service cost – benefits earned during the year $ 8.1 $ 6.0 $ 5.2 Interest cost on projected benefits 86.9 87.4 84.6 Expected return on plan assets (113.4) (116.0) (115.9) Net amortization and deferral 3.0 3.2 2.9 Special termination benefits, plan curtailments, and settlement charges — (0.3) 0.3 Net pension (income)/expense $ (15.4) $ (19.7) $ (22.9) The net actuarial loss and prior service cost for the defined benefit pension plans that are included in accumulated other comprehensive income (loss) that have not yet been recognized as components of net periodic benefit cost are $210.5 million and $0.9 million, respectively, at June 30, 2026. There is no remaining transition obligation for the defined benefit pension plans included in accumulated other comprehensive income (loss). Assumptions used to determine the actuarial present value of benefit obligations were: Years ended June 30, 2026 2025 Discount rate 5.55 % 5.35 % Interest crediting rate 3.95 % 3.85 % Increase in compensation levels N/A N/A Assumptions used to determine the net pension (income)/expense generally were: Years ended June 30, 2026 2025 2024 Discount rate 5.35 % 5.40 % 5.10 % Interest crediting rate 3.85 % 3.70 % 3.50 % Expected long-term rate of return on assets 5.90 % 6.00 % 6.00 % Increase in compensation levels N/A N/A N/A The discount rate is based upon published rates for high-quality fixed-income investments that produce cash flows that approximate the timing and amount of expected future benefit payments. The interest crediting rate is based on the current and expected future ten-year U.S. Treasury rates or a minimum of 3.25%. The expected long-term rate of return on assets is determined based on historical and expected future rates of return on plan assets considering the target asset mix and the long-term investment strategy. 71 Plan Assets The Company's pension plans' asset allocations for the U.S. plan at June 30, 2026 and 2025 by asset category were as follows: 2026 2025 Cash and cash equivalents 1 % 5 % Fixed income securities 73 % 69 % U.S. equity securities 17 % 11 % International equity securities 9 % 6 % Global equity securities — % 9 % 100 % 100 % The Company's pension plans' asset investment strategy is designed to ensure prudent management of assets, consistent with long-term return objectives and the prompt fulfillment of all pension plan obligations. The investment strategy and asset mix were developed in coordination with an asset liability study conducted by external consultants to maximize the funded ratio with the least amount of volatility. The pension plans' assets are currently invested in various asset classes with differing expected rates of return, correlations, and volatilities, including large capitalization and small capitalization U.S. equities, international equities, U.S. fixed income securities, and cash. The target asset allocation ranges for the U.S. plan are generally as follows: U.S. fixed income securities and cash 70% - 80% U.S. equity securities 9% - 19% International equity securities 4% - 11% Global equity securities —% - 11% As of June 30, 2026 and 2025, the U.S. pension plan asset allocations are within the target ranges. The pension plans' fixed income portfolio is designed to match the duration and liquidity characteristics of the pension plans' liabilities. In addition, the pension plans invest only in investment-grade debt securities to ensure preservation of capital. The pension plans' equity portfolios are subject to diversification guidelines to reduce the impact of losses in single investments. Investment managers are prohibited from buying or selling commodities and from the short selling of securities. None of the pension plans' assets are directly invested in the Company's stock, although the pension plans may hold a minimal amount of Company stock to the extent of the Company's participation in equity indices. The pension plans' investments included in Level 2 are valued utilizing inputs obtained from an independent pricing service, which are reviewed by the Company for reasonableness. To determine the fair value of our Level 2 plan assets, a variety of inputs are utilized, including benchmark yields, reported trades, non-binding broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, new issue data, and monthly payment information. The pension plans have no Level 1 and Level 3 investments at June 30, 2026. 72 The following table presents the investments of the pension plans measured at fair value at June 30, 2026: Level 1 Level 2 Level 3 Total Commingled trusts $ — $ 534.2 $ — $ 534.2 Government securities — 536.3 — 536.3 Corporate and municipal bonds — 854.4 — 854.4 Mortgage-backed security bonds — 38.6 — 38.6 Total pension asset investments $ — $ 1,963.5 $ — $ 1,963.5 In addition to the investments in the above table, the pension plans also held cash and cash equivalents of $21.7 million as of June 30, 2026, which have been classified as Level 1 in the fair value hierarchy. The following table presents the investments of the pension plans measured at fair value at June 30, 2025: Level 1 Level 2 Level 3 Total Commingled trusts $ — $ 501.6 $ — $ 501.6 Government securities — 532.4 — 532.4 Corporate and municipal bonds — 783.6 — 783.6 Mortgage-backed security bonds — 15.7 — 15.7 Total pension asset investments $ — $ 1,833.3 $ — $ 1,833.3 In addition to the investments in the above table, the pension plans also held cash and cash equivalents of $104.9 million as of June 30, 2025, which have been classified as Level 1 in the fair value hierarchy. Contributions During fiscal 2026, the Company contributed $17.8 million to the pension plans. The Company expects to contribute $8.2 million to the pension plans during fiscal 2027. Estimated Future Benefit Payments The benefits expected to be paid in each year from fiscal 2027 to the year ended June 30, 2031 are $117.6 million, $123.0 million, $126.7 million, $130.5 million, and $134.6 million, respectively. The aggregate benefits expected to be paid in the five fiscal years from the year ended June 30, 2032 to the year ended June 30, 2036 are $662.9 million. The expected benefits to be paid are based on the same assumptions used to measure the Company's pension plans' benefit obligations at June 30, 2026 and includes estimated future employee service. C. Retirement and Savings Plan. The Company has a 401(k) retirement and savings plan, which allows eligible employees to contribute up to 50% of their compensation annually and allows highly compensated employees to contribute up to 12% of their compensation annually. The Company matches a portion of employee contributions, which amounted to approximately $199.9 million, $191.2 million, and $184.1 million for the calendar years ended December 31, 2025, 2024, and 2023, respectively. NOTE 12. INCOME TAXES Earnings before income taxes shown below are based on the geographic location to which such earnings are attributable. Years ended June 30, 2026 2025 2024 Earnings before income taxes: United States $ 5,198.7 $ 4,825.6 $ 4,408.0 Foreign 531.6 484.5 464.3 $ 5,730.3 $ 5,310.1 $ 4,872.3 73 The provision (benefit) for income taxes consists of the following components: Years ended June 30, 2026 2025 2024 Current: Federal $ 785.4 $ 880.5 $ 847.4 Foreign 217.2 136.0 132.8 State 157.9 176.9 177.5 Total current 1,160.5 1,193.4 1,157.7 Deferred: Federal 160.1 0.7 (18.7) Foreign (14.2) 19.4 (6.6) State 10.4 16.9 (12.1) Total deferred 156.3 37.0 (37.4) Total provision for income taxes $ 1,316.8 $ 1,230.4 $ 1,120.3 A reconciliation between the Company's effective tax rate and the U.S. federal statutory rate is as follows: Years ended June 30, 2026 % U.S. Federal Statutory Tax Rate 1,203.4 21.0 Increase/(decrease) in provision from: State and local income taxes, net of federal income tax effect (a) 151.0 2.6 Foreign tax effects 82.8 1.5 Effect of cross-border tax laws (50.7) (0.9) Tax credits (43.5) (0.7) Nontaxable or nondeductible items 2.0 — Changes in unrecognized tax benefits (12.7) (0.2) Other (15.5) (0.3) $ 1,316.8 23.0 (a) State taxes in California, New York, New Jersey, and Illinois, made up the majority (greater than 50 percent) of the tax effect in this category. Differences between the U.S. statutory federal rate and the Company's effective income tax rate for periods prior to the adoption of ASU 2023-09 are as follows: Years ended June 30, 2025 % 2024 % Provision for taxes at U.S. statutory rate $ 1,115.1 21.0 $ 1,023.2 21.0 Increase/(decrease) in provision from: State taxes, net of federal tax benefit 128.0 2.4 120.6 2.5 Foreign rate differential 39.0 0.7 41.0 0.9 Excess tax benefit - Stock-based compensation (24.3) (0.4) (17.1) (0.4) Other (27.4) (0.5) (47.4) (1.0) $ 1,230.4 23.2 $ 1,120.3 23.0 74 The effective tax rate in fiscal 2026 and 2025 was 23.0% and 23.2%, respectively. The decrease in the effective tax rate is primarily due to a decrease in uncertain tax positions and an increase in tax credits offset by a lower benefit for adjustments to prior year tax liabilities and a lower excess tax benefit on stock-based compensation for fiscal 2026 as compared to fiscal 2025. The effective tax rate for fiscal 2025 and 2024 was 23.2% and 23.0%, respectively. The increase in the effective tax rate is primarily due to higher reserves for uncertain tax positions in fiscal 2025 and a valuation allowance release in fiscal 2024 offset by an increase in the excess tax benefit on stock-based compensation in fiscal 2025. The significant components of deferred income tax assets and liabilities and their balance sheet classifications are as follows: Years ended June 30, 2026 2025 Deferred tax assets: Accrued expenses not currently deductible $ 294.9 $ 256.7 Stock-based compensation expense 59.8 56.0 Foreign tax credits 9.6 8.8 Fixed and intangible assets 80.7 216.8 Net operating losses 57.4 59.3 Disallowed business interest expense carryforward — 30.9 Unrealized investment losses, net 106.1 98.4 Other 32.2 28.5 640.7 755.4 Less: valuation allowances (24.1) (23.8) Deferred tax assets, net $ 616.6 $ 731.6 Deferred tax liabilities: Deferred contract costs $ 664.9 $ 654.0 Prepaid expenses 122.3 103.1 Prepaid retirement benefits 76.6 53.1 Tax on unrepatriated earnings 10.4 12.0 Other 17.3 16.9 Deferred tax liabilities 891.5 839.1 Net deferred tax (liabilities)/assets $ (274.9) $ (107.5) There are $64.2 million and $56.1 million of long-term deferred tax assets included in other assets on the Consolidated Balance Sheets at June 30, 2026 and 2025, respectively. Income taxes have not been provided on undistributed earnings of certain foreign subsidiaries in an aggregate amount of approximately $55.5 million as the Company considers such earnings to be permanently reinvested outside of the United States. As of June 30, 2026, it is not practicable to estimate the unrecognized tax liability that would occur upon distribution. The Company has estimated foreign net operating loss carry-forwards of approximately $173.5 million as of June 30, 2026, of which $18.8 million expire through the year ending June 30, 2046 and $154.7 million have an indefinite utilization period. As of June 30, 2026, the Company has approximately $24.0 million of federal net operating loss carry-forwards from acquired companies. The net operating losses have an annual utilization limitation pursuant to section 382 of the Internal Revenue Code, of which $8.7 million expire through the year ending June 30, 2036 and $15.3 million have an indefinite utilization period. The Company has state net operating loss carry-forwards of approximately $140.0 million as of June 30, 2026, which expire through the year ending June 30, 2046. The Company has recorded valuation allowances of $24.1 million and $23.8 million at June 30, 2026 and 2025, respectively, to reflect the estimated amount of domestic and foreign deferred tax assets that may not be realized. 75 Years ended June 30, 2026 U.S. Federal $ 672.5 U.S. State 167.9 Foreign 166.3 Total income taxes paid $ 1,006.7 Income tax payments were approximately $1,198.0 million and $1,185.2 million for fiscal 2025 and 2024, respectively. As of June 30, 2026, 2025, and 2024 the Company's liabilities for unrecognized tax benefits, which include interest and penalties, were $152.5 million, $163.0 million, and $126.9 million, respectively. The amount that, if recognized, would impact the effective tax rate is $110.2 million, $119.0 million, and $91.8 million, respectively. The remainder, if recognized, would principally impact deferred taxes. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: 2026 2025 2024 Unrecognized tax benefits at beginning of the year $ 163.0 $ 126.9 $ 116.9 Additions for tax positions 28.2 29.5 17.2 Additions for tax positions of prior periods 33.6 26.7 17.8 Reductions for tax positions of prior periods (47.6) (1.8) (12.8) Settlement with tax authorities (18.1) (0.1) (9.0) Expiration of the statute of limitations (5.1) (17.5) (2.9) Impact of foreign exchange rate fluctuations (1.5) (0.7) (0.3) Unrecognized tax benefit at end of year $ 152.5 $ 163.0 $ 126.9 Interest expense and penalties associated with uncertain tax positions have been recorded in the provision for income taxes on the Statements of Consolidated Earnings. During the year ended June 30, 2026, the Company recorded interest benefit of $0.8 million. During the years ended June 30, 2025, and 2024, the Company recorded interest expense of $4.3 million, and $5.7 million, respectively. Penalties recorded during fiscal years 2026, 2025, and 2024 were not significant. At June 30, 2026 and June 30, 2025, the Company had accrued interest of $27.6 million and $36.9 million, respectively, recorded on the Consolidated Balance Sheets within other liabilities. At June 30, 2026 and June 30, 2025, the Company had accrued penalties of $0.2 million and $0.3 million recorded on the Consolidated Balance Sheets within other liabilities. The Company is routinely examined by the IRS and tax authorities in foreign countries in which it conducts business, as well as tax authorities in states in which it has significant business operations. The tax years currently under examination vary by jurisdiction. Examinations in progress in which the Company has significant business operations are as follows: Taxing Jurisdiction Fiscal Years under Examination U.S. (IRS) 2025 - 2026 Arizona 2016 - 2020 Massachusetts 2016 - 2023 Michigan 2020 - 2023 New Jersey 2020 - 2022 New York City 2022 - 2024 New York State 2022 - 2024 India 2014 - 2023 76 The Company regularly considers the likelihood of assessments resulting from examinations in each of the jurisdictions. The resolution of tax matters is not expected to have a material effect on the consolidated financial condition of the Company, although a resolution could have a material impact on the Company's Statements of Consolidated Earnings for a particular future period and on the Company's effective tax rate. NOTE 13. COMMITMENTS AND CONTINGENCIES As of June 30, 2026, the Company has purchase commitments of approximately $2,850.5 million, including a reinsurance premium with Chubb for the fiscal 2026 policy year, as well as obligations related to software license agreements, third-party software services and purchase and maintenance agreements on our software, equipment, and other assets, of which $604.6 million relates to the year ending June 30, 2027, $1,095.9 million relates to the years ending June 30, 2028 through 2029, $694.1 million relates to the years ending June 30, 2030 through 2031, and the remaining relates to fiscal years thereafter. In May 2020, a putative class action complaint was filed against ADP, TotalSource and related defendants in the U.S. 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 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 current liabilities on the Consolidated Balance Sheet. Additionally, the Company recorded insurance receivables of $30 million within accounts receivable on the Consolidated Balance Sheet, which represents recoveries considered probable from purchased insurance. The Company is subject to various claims, litigation, and regulatory compliance matters in the normal course of business. When a loss is considered probable and reasonably estimable, the Company records a liability in the amount of its best estimate for the ultimate loss. Management currently believes that the resolution of these claims, litigation and regulatory compliance matters against us, individually or in the aggregate, will not have a material adverse impact on our consolidated results of operations, financial condition or cash flows. These matters are subject to inherent uncertainties and management's view of these matters may change in the future. It is not the Company’s business practice to enter into off-balance sheet arrangements. In the normal course of business, the Company may enter into contracts in which it makes representations and warranties that relate to the performance of the Company’s services and products. The Company does not expect any material losses related to such representations and warranties. 77 NOTE 14. RECLASSIFICATION OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME ("AOCI") Comprehensive income is a measure of income that includes both net earnings and other comprehensive income/(loss). Other comprehensive income/(loss) results from items deferred on the Consolidated Balance Sheets in stockholders' equity. Other comprehensive income/(loss) was ($18.7) million, $924.9 million, and $497.5 million in fiscal 2026, 2025, and 2024, respectively. Changes in AOCI by component are as follows: Currency Translation Adjustment Net Gains/(Losses) on Available-for-sale Securities Cash Flow Hedging Activities Pension Liability Accumulated Other Comprehensive Income/(Loss) Balance at June 30, 2023 $ (340.8) $ (1,705.6) $ (23.3) $ (236.1) $ (2,305.8) Other comprehensive income/(loss) before reclassification adjustments (38.0) 685.2 — 5.6 652.8 Tax effect — (162.2) — (1.1) (163.3) Reclassification adjustments to net earnings — 5.9 (A) 4.4 (C) 0.1 (B) 10.4 Tax effect — (1.3) (1.1) — (2.4) Balance at June 30, 2024 $ (378.8) $ (1,178.0) $ (20.0) $ (231.5) $ (1,808.3) Other comprehensive (loss)/income before reclassification adjustments 89.0 1,088.4 (15.6) 8.5 1,170.3 Tax effect — (250.7) 3.8 (2.1) (249.0) Reclassification adjustments to net earnings — 1.7 (A) 5.4 (C) (2.4) (B) 4.7 Tax effect — (0.3) (1.3) 0.5 (1.1) Balance at June 30, 2025 $ (289.8) $ (338.9) $ (27.7) $ (227.0) $ (883.4) Other comprehensive income/(loss) before reclassification adjustments (53.2) (30.6) 3.7 63.9 (16.2) Tax effect — 8.5 (0.9) (15.8) (8.2) Reclassification adjustments to net earnings — (2.9) (A) 6.0 (C) 4.4 (B) 7.5 Tax effect — 0.7 (1.5) (1.0) (1.8) Balance at June 30, 2026 $ (343.0) $ (363.2) $ (20.4) $ (175.5) $ (902.1) (A) Reclassification adjustments out of AOCI are included within Other (income)/expense, net, on the Statements of Consolidated Earnings. (B) Reclassification adjustments out of AOCI are included in Net pension (income)/expense (see Note 11). (C) Reclassification adjustments out of AOCI are included in Interest expense on the Statements of Consolidated Earnings (see Note 10). NOTE 15. FINANCIAL DATA BY SEGMENT AND GEOGRAPHIC AREA Based upon similar economic and operational characteristics, the Company’s strategic business units have been aggregated into the following two reportable segments: Employer Services and PEO Services. Certain revenues and expenses are charged to the reportable segments at a standard rate for management reasons. Other costs are recorded based on management responsibility. The Company's Chief Operating Decision Maker ("CODM") is the Chief Executive Officer. For each reportable segment, the CODM uses earnings before income taxes, including plan-to-actual and forecast-to-actual results, to assess segment performance and allocate resources (including personnel and capital resources) amongst its strategic business units. The CODM does not review assets at the reportable segment level, hence segment disclosure relating to total assets has not been provided. 78 The following tables present the Company's revenues, significant segment expenses, and earnings before income taxes by reportable segment: Year ended June 30, 2026 Employer Services PEO Services Total Revenues from external customers $ 13,476.9 $ 7,115.7 $ 20,592.6 Interest on funds held for clients 1,342.4 12.4 1,354.8 Intercompany revenues 12.1 — 12.1 Total segment revenues 14,831.4 7,128.1 21,959.5 Reconciliation of revenues: Intercompany eliminations (12.1) Total consolidated revenues $ 21,947.4 Less segment expenses: (a) Selling and marketing 2,365.7 415.6 Zero-margin benefits pass-through costs — 4,607.3 Workers' compensation coverage and state unemployment taxes — 718.4 Other segment expenses (b) 7,028.9 450.7 Total segment earnings before income taxes 5,436.8 936.1 6,372.9 Reconciliation of earnings before income taxes: Other (c) (642.6) Total consolidated earnings before income taxes $ 5,730.3 Year ended June 30, 2025 Employer Services PEO Services Total Revenues from external customers $ 12,692.2 $ 6,679.6 $ 19,371.8 Interest on funds held for clients 1,178.3 10.8 1,189.1 Intercompany revenues 12.6 — 12.6 Total segment revenues 13,883.1 6,690.4 20,573.5 Reconciliation of revenues: Intercompany eliminations (12.6) Total consolidated revenues $ 20,560.9 Less segment expenses: (a) Selling and marketing 2,177.1 362.8 Zero-margin benefits pass-through costs — 4,289.0 Workers' compensation coverage and state unemployment taxes — 681.3 Other segment expenses (b) 6,697.5 406.8 Total segment earnings before income taxes 5,008.5 950.5 5,959.0 Reconciliation of earnings before income taxes: Other (c) (648.9) Total consolidated earnings before income taxes $ 5,310.1 79 Year ended June 30, 2024 Employer Services PEO Services Total Revenues from external customers $ 11,953.6 $ 6,224.3 $ 18,177.9 Interest on funds held for clients 1,015.4 9.3 1,024.7 Intercompany revenues 11.8 — 11.8 Total segment revenues 12,980.8 6,233.6 19,214.4 Reconciliation of revenues: Intercompany eliminations (11.8) Total consolidated revenues $ 19,202.6 Less segment expenses: (a) Selling and marketing 2,025.0 330.5 Zero-margin benefits pass-through costs — 3,975.9 Workers' compensation coverage and state unemployment taxes — 613.4 Other segment expenses (b) 6,400.3 392.3 Total segment earnings before income taxes 4,555.5 921.5 5,477.0 Reconciliation of earnings before income taxes: Other (c) (604.7) Total consolidated earnings before income taxes $ 4,872.3 (a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intercompany expenses are included in the amounts shown. (b) Other segment expenses for both reportable segments include operating, research and development, depreciation and amortization, and other general and administrative expenses. (c) Other represents certain corporate overhead charges and expenses that have not been allocated to the reportable segments, including corporate functions, legal settlements, company-wide severance initiatives, non-recurring gains and losses, the elimination of intercompany transactions, and interest income and expense. The following table presents the Company's depreciation and amortization included in earnings before income taxes for each reportable segment: Years ended June 30, 2026 2025 2024 Employer Services $ 525.1 $ 512.4 $ 486.6 PEO Services 2.2 6.7 6.8 Other 58.6 63.3 68.5 Total depreciation and amortization $ 585.9 $ 582.4 $ 561.9 80 The following table presents the Company's revenues, which is based on the location of the billing entity, and assets by geographic area: United States EMEA Canada Other Total Year ended June 30, 2026 Revenues $ 19,279.8 $ 1,733.3 $ 523.7 $ 410.6 $ 21,947.4 Assets $ 54,851.4 $ 3,544.3 $ 4,025.8 $ 771.8 $ 63,193.3 Year ended June 30, 2025 Revenues $ 18,179.2 $ 1,533.5 $ 489.3 $ 358.9 $ 20,560.9 Assets $ 46,763.0 $ 3,025.5 $ 2,750.7 $ 830.1 $ 53,369.3 Year ended June 30, 2024 Revenues $ 16,934.2 $ 1,451.4 $ 473.7 $ 343.3 $ 19,202.6 Assets $ 47,989.9 $ 2,800.8 $ 2,796.6 $ 775.4 $ 54,362.7