ADP · 10-Q · 2026Q3 · Full report
Interest Rate Environment
AUTOMATIC DATA PROCESSING INC · 2026-10-30 · Importance 46 · Surprise 56 · In source text
For the three months ended September 30, 2026, interest revenue on funds held for clients increased $42.5 million year over year to $329.3 million, exceeding the filing’s $165 million revenue materiality threshold. ADP attributed the increase to average client funds balances rising 5.7% to $36.9 billion and the average interest rate earned increasing to 3.6% from 3.3%. Interest income on corporate funds also increased by $32.2 million, reflecting higher average investment balances and a 30-basis-point increase in average interest rates.
Key facts
- ADP average commercial paper and reverse repurchase outstanding balances increased by $0.8 billion; average interest rates on commercial paper and reverse repurchases decreased by 60 and 70 basis points, respectively. source
- ADP interest expense increased by $12.8 million due to senior notes issued during the year ended June 30, 2026, and by $0.8 million related to commercial paper and reverse repurchase borrowings. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | mixed | realized | — | ADP average commercial paper and reverse repurchase outstanding balances increased by $0.8 billion; average interest rates on commercial… |