Company: ADP
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0000008670-25-000047
Chunk: 9

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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22.5 %22.6 %Net earnings  $1,013.0 $956.3 6 %Adjustments:Legal settlements (b)— (0.3)Income tax provision for legal settlements (c)— 0.1 Adjusted net earnings  $1,013.0 $956.1 6 %Diluted EPS  $2.49 $2.34 6 %Adjustments:Legal settlements (b) (c)— — Adjusted diluted EPS  $2.49 $2.33 7 %

Note: Numbers may not foot due to rounding.

(a) In adjusted EBIT, we include the interest income earned on investments associated with our client funds extended investment strategy and interest expense on borrowings related to our client funds extended investment strategy as we believe these amounts to be fundamental to the underlying operations of our business model. The adjustments in the table above represent the interest income and interest expense that are not related to our client funds extended investment strategy and are labeled as “All other interest expense” and “All other interest income.”

(b) In the three months ended September 30, 2024, this represents a reserve reversal of a legal reserve recorded during the year ended June 30, 2023.

(c) The income tax provision was calculated based on the annualized marginal rate in effect during the quarter of the adjustment.

(d) The adjusted effective tax rate is calculated as our adjusted provision for income taxes divided by the sum of our adjusted net earnings plus our adjusted provision for income taxes.

The following table reconciles our reported growth rates to the non-GAAP measure of organic constant currency, which excludes the impact of acquisitions, the impact of dispositions, and the impact of foreign currency. The impact of acquisitions and dispositions is calculated by excluding the current year revenues of acquisitions until the one-year anniversary of the transaction and by excluding the prior year revenues of divestitures for the one-year period preceding the transaction.  The impact of foreign currency is determined by calculating the current year results using foreign exchange rates consistent with the prior year. The PEO segment is not impacted by acquisitions, dispositions or foreign currency.

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Three Months EndedSeptember 30,2025Consolidated revenue growth as reported7 %Adjustments:Impact of acquisitions(1)%Impact of foreign currency(1)%Consolidated revenue growth, organic constant currency6 %Employer Services revenue growth as reported7 %Adjustments:Impact of acquisitions