ADP · 8-K · 20261028PR000033

Client Funds Interest

AUTOMATIC DATA PROCESSING INC · 2026-10-28 · Importance 42 · Surprise 40

Interest on funds held for clients increased 15% year over year to $329.3 million for the quarter ended September 30, 2026. Average client funds balances grew 6% to $36.9 billion, while the average yield rose 30 basis points to 3.6%. The net impact from the client funds strategy increased 26% to $332.9 million, including $106.1 million of corporate extended interest income and $102.5 million of related short-term financing expense.

Key facts

• ADP's fiscal 2027 client-funds interest outlook is $1.59 billion to $1.61 billion, based on anticipated client funds balance growth of 4% to 5% and an average yield anticipated to increase to approximately 3.8%. source
• ADP's fiscal 2027 total contribution from the client funds extended investment strategy is forecast at $1.59 billion to $1.61 billion. source
• For the first quarter of fiscal 2027, ADP's average client funds investment balance at cost was $36.9 billion, up 6% from $34.9 billion a year earlier. source
• For the first quarter of fiscal 2027, ADP's net impact from the Client Funds Strategy was $332.9 million, up 26% from $263.7 million. source
• For the first quarter of fiscal 2027, interest on funds held for ADP clients increased 15% to $329 million. source
• At September 30, 2026, ADP's funds held for clients totaled $44,733.3 million. source
• For the first quarter of fiscal 2027, ADP average client funds balances increased 6% to $36.9 billion. source
• For the first quarter of fiscal 2027, the average interest yield on ADP client funds increased 30 basis points to 3.6%. source