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Copyright © 2026 ADP, Inc. ADP Earnings Call & Webcast Q4 Fiscal 2026 July 29, 2026
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2Copyright © 2026 ADP, Inc. DISCLAIMERS FORWARD-LOOKING STATEMENTS This document and other written or oral statements made from time to time by ADP may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by the use of words like “outlook,” “expects,”“assumes,” “projects,” “anticipates,” “estimates,” “we believe,” “could,” “is designed to” and other words of similar meaning, are forward-looking statements. These statements are based on management’s expectations and assumptions and depend upon or refer to future events or conditions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements or that could contribute to such difference include: ADP's success in obtaining and retaining clients, and selling additional services to clients; the pricing of products and services; the success of our new solutions; our ability to respond successfully to changes in technology, including artificial intelligence; compliance with existing or new legislation or regulations; changes in, or interpretations of, existing legislation or regulations; overall market, political and economic conditions, including interest rate and foreign currency trends and inflation; competitive conditions; our ability to maintain our current credit ratings and the impact on our funding costs and profitability; security or cyber breaches, fraudulent acts, and system interruptions and failures, including as a result of artificial intelligence; employment and wage levels; availability of skilled associates; the impact of new acquisitions and divestitures; the impact of any uncertainties related to major natural disasters or catastrophic events; and supply-chain disruptions. ADP disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. These risks and uncertainties, along with the risk factors discussed under “Item 1A. Risk Factors” of our most recent Annual Report on Form 10-K, and in other written or oral statements made from time to time by ADP, should be considered in evaluating any forward-looking statements contained herein. Adjusted EBIT, adjusted EBIT margin, adjusted diluted earnings per share, adjusted effective tax rate, and organic constant currency are all non-GAAP financial measures. Please refer to the Q4 fiscal 2026 earnings release available at investors.adp.com for a discussion of why ADP believes these measures are important and for a reconciliation of non-GAAP financial measures to their closest comparable GAAP financial measures. This presentation is a supplement to our Q4 fiscal 2026 earnings release; it is intended to be read in conjunction with, not as a substitute for, or in isolation from, the earnings release. NON-GAAP MEASURES
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3 Copyright © 2026 ADP, Inc. STRONG FY26 PERFORMANCE • 7% revenue growth and 11% adjusted diluted EPS1 growth • 6% Employer Services new business bookings growth to $2.2 billion • Retirement Services exceeded $1 billion in annual revenue • Employer Services retention remained strong at 92.1%, as company- wide client satisfaction scores reached new record highs STRATEGIC PROGRESS IN FY26 • Clients and their employees had more than 12 million conversations with ADP Assist Agents in FY26 • 94% increase in number of clients live on ADP Lyric HCM • Accelerated international bookings growth with demand growing for our unified global payroll, global HR, and global time offer • Enhanced The Zone with AI enablement across service and sales 3 1. For a reconciliation of this non-GAAP financial metric to its closest comparable GAAP metric see our Q4 fiscal 2026 earnings release available at investors.adp.com.
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4 Copyright © 2026 ADP, Inc. Q4 FY25 Q4 FY26 Q4 FISCAL 2026 FINANCIAL HIGHLIGHTS 1. For a reconciliation of these non-GAAP financial metrics to their closest comparable GAAP metrics see our Q4 fiscal 2026 earnings release available at investors.adp.com. Q4 FY25 Q4 FY26 Q4 FY25 Q4 FY26 $5,127M $5,474M $1,213M $1,372M $2.26 $2.64 TOTAL REVENUES 7% 6% Organic Constant Currency1 ADJUSTED EBIT1 13% Adjusted EBIT1 Margin 140 bps ADJUSTED DILUTED EPS1 17% (Unaudited)
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5 Copyright © 2026 ADP, Inc. FISCAL 2026 FINANCIAL HIGHLIGHTS 1. For a reconciliation of these non-GAAP financial metrics to their closest comparable GAAP metrics see our Q4 fiscal 2026 earnings release available at investors.adp.com. FY25 FY26 FY25 FY26FY25 FY26 $20,561M $21,947M $5,347M $5,875M $10.01 $11.12 TOTAL REVENUES 7% 6% Organic Constant Currency1 ADJUSTED EBIT1 10% Adjusted EBIT1 Margin 80 bps ADJUSTED DILUTED EPS1 11% (Unaudited)
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6 Copyright © 2026 ADP, Inc. Q4 FY25 Q4 FY26 FY27 ES OUTLOOK Q4 FISCAL 2026 EMPLOYER SERVICES SEGMENT RESULTS 1. For a reconciliation of this non-GAAP financial metrics to its closest comparable GAAP metric see our Q4 fiscal 2026 earnings release available at investors.adp.com. Q4 FY25 Q4 FY26 $3,466M $3,697M • U.S. pays per control 1% • Average client funds balances 8% • Average client funds yield of 3.5%, up from 3.2% in prior year 33.5% 34.4% • Margin increase driven by operational productivity improvements and the contribution from client funds interest revenue growth ES REVENUES 7% 6% Organic Constant Currency1 ES MARGIN 90 bps (Unaudited) Fiscal 2026 (unaudited) July 29, 2026 Fiscal 2027 Outlook Revenues $14,831M 5 to 6% ES New Business Bookings $2.2B 4 to 7% Client Revenue Retention 92.1% (30) to (10) bps U. S. Pays Per Control 1% 0 to 1%
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7 Copyright © 2026 ADP, Inc. Q4 FISCAL 2026 PEO SERVICES SEGMENT RESULTS • Revenues excluding zero-margin benefits pass-throughs (ZMPT) 5% • Average worksite employees (WSEs) 2% to about 775,000 • Margin decline driven mainly by faster growth in zero-margin pass-through revenues, and higher workers’ compensation and selling expenses Q4 FY25 Q4 FY26Q4 FY25 Q4 FY26 PEO REVENUES 7% PEO MARGIN 100 bps $1,664M $1,779M 13.2% 12.2% (Unaudited) Fiscal 2026 (unaudited) July 29, 2026 Fiscal 2027 Outlook Revenues $7,128M 5 to 7% Revenues Ex ZMPT $2,521M 3 to 5% Average WSEs 762,000 ~2% FY27 PEO OUTLOOK
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8 Copyright © 2026 ADP, Inc. FISCAL 2027 OUTLOOK 1. Outlook contemplates the anticipated impact of foreign currency in revenue and operating results. 2. For a reconciliation of these non-GAAP financial metrics to their closest comparable GAAP metrics see our Q4 fiscal 2026 earnings release available at investors.adp.com. Fiscal 2026 (unaudited) July 29, 2026 Fiscal 2027 Outlook 1 Total ADP Revenues $21,947M 5 to 6% Adj. EBIT Margin 2 26.8% 70 to 90 bps Adj. Effective Tax Rate 2 23.0% ~23% Adj. Diluted EPS 2 $11.12 9 to 11% Employer Services Revenues $14,831M 5 to 6% ES New Business Bookings $2.2B 4 to 7% Client Revenue Retention 92.1% (30) to (10) bps U.S. Pays Per Control 1% 0 to 1% PEO Services Revenues $7,128M 5 to 7% Revenues Ex Zero-Margin Pass-throughs $2,521M 3 to 5% Average WSEs 762,000 ~2% Client Funds Interest Average Client Funds Balances $40.4B 3 to 4% Yield on Client Funds Portfolio 3.4% ~3.7% Client Funds Interest Revenue $1,355M $1,540 to $1,560M Net Impact from Client Funds Extended Strategy $1,315M $1,545 to $1,565M
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9 Copyright © 2026 ADP, Inc. APPENDIX: CLIENT FUNDS INVESTMENT STRATEGY DETAIL Interest on the Extended Portfolio flows into two separate sections of the Statements of Consolidated Earnings. 1. Reported as Interest on Funds Held for Clients in the revenue section of the Statements of Consolidated Earnings. 2. A component of Interest Income on Corporate Funds, reported within Other Income, net, on the Statements of Consolidated Earnings. Average Balances ($) Average Rates Interest Income / (Expense) ($) Fiscal 2026 (unaudited) July 29, 2026 Fiscal 2027 Outlook Fiscal 2026 (unaudited) July 29, 2026 Fiscal 2027 Outlook Fiscal 2026 (unaudited) July 29, 2026 Fiscal 2027 Outlook Client Short 9.5B 9.4 – 9.5B 3.3% ~3.5% 315M 325 – 330M Client Extended 16.6B 17.1 – 17.3B 3.5% ~4.1% 573M 695 – 705M Client Long 14.3B 15.0 – 15.2B 3.3% ~3.5% 467M 520 – 525M Funds Held for Clients1 40.4B 41.5 – 42.0B 3.4% ~3.7% 1,355M 1,540 to 1,560M Corporate Extended Interest Income2 7.8B ~8.7B 3.6% ~4.1% 278M ~350M Short-term Financing to Support Client Funds Extended Strategy 7.8B ~8.7B 4.1% ~4.0% (318)M ~(345M) Net Impact from Client Funds Extended Strategy 1,315M 1,545 to 1,565M
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10 Copyright © 2026 ADP, Inc. APPENDIX: CLIENT FUNDS PORTFOLIO MATURITIES Client Funds Investment Strategy Portfolio1 at June 30, 2026 Available for Sale Securities Maturities and Book Yields 1. Chart represents maturities for Client Long and Client Extended portfolios. $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 >FY34 2.6% 3.8% 4.0% 3.9% 3.8% 3.3% 4.5% 4.6% % of portfolio maturing: 16% 15% 18% 21% 15% 4% 4% 3% 4% Market Value ($ Millions) 4.4%