Automatic Data Processing (ADP) official guidance

•PEO Services average worksite employee count growth of about 2%

Our outlook assumes average worksite employee growth of around 2%.

•PEO Services average worksite employee count growth of about 2%

•Interest on funds held for clients of $1.59 to $1.61 billion; this is based on anticipated growth in client funds balances of 4% to 5% and an average yield that is anticipated to increase to approximately 3.8%

We also expect that our average client funds balances will grow 3%-4% in fiscal 2027, compared to the 7% growth experienced in fiscal 2026, driven by some moderation in wages growth.

•Interest on funds held for clients of $1.540 to $1.560 billion; this is based on anticipated growth in client funds balances of 3% to 4% and an average yield that is anticipated to increase to approximately 3.7%

•Total contribution from the client funds extended investment strategy of $1.59 to $1.61 billion

Meanwhile, we expect that the net impact from our client funds strategy will increase from $1.31 billion in fiscal 2026 to a range of $1.545-1.565 billion in fiscal 2027.

•Total contribution from the client funds extended investment strategy of $1.545 to $1.565 billion

•Interest on funds held for clients of $1.59 to $1.61 billion; this is based on anticipated growth in client funds balances of 4% to 5% and an average yield that is anticipated to increase to approximately 3.8%

Putting this all together, we expect that our client funds interest revenue will increase from $1.35 billion in fiscal 2026 to a range of $1.54-1.56 billion in fiscal 2027.

•Interest on funds held for clients of $1.540 to $1.560 billion; this is based on anticipated growth in client funds balances of 3% to 4% and an average yield that is anticipated to increase to approximately 3.7%

•Interest on funds held for clients of $1.59 to $1.61 billion; this is based on anticipated growth in client funds balances of 4% to 5% and an average yield that is anticipated to increase to approximately 3.8%

We expect that our average yield will increase from 3.4% in fiscal 2026 to 3.7% in fiscal 2027, which contemplates the market's current expectations for between 25 and 50 basis points of Fed funds rate hikes over the course of fiscal 2027.

•Interest on funds held for clients of $1.540 to $1.560 billion; this is based on anticipated growth in client funds balances of 3% to 4% and an average yield that is anticipated to increase to approximately 3.7%

Second, as a result of our laddering strategy, we remain positioned for continued tailwinds from our client funds portfolio as anticipated reinvestment rates remain above the average yield of our maturing securities, driving overall yields expected on the portfolio above fiscal 2026 levels.

•Employer Services client revenue retention decrease of 10 to 30 basis points

For ES retention, we forecast a 10-30 basis point decline from our unchanged 92.1% fiscal 2026 result.

•Employer Services client revenue retention decrease of 10 to 30 basis points

We expect our effective tax rate to be around 23% in fiscal 2027, Adjusted EPS growth of 9%-11%, supported by continued healthy share repurchase activity.

•Adjusted diluted EPS growth of 10% to 12%

We expect our effective tax rate to be around 23% in fiscal 2027, Adjusted EPS growth of 9%-11%, supported by continued healthy share repurchase activity.

•Adjusted diluted EPS growth of 9% to 11%

•Employer Services new business bookings growth of 4% to 7%

We expect ES new business bookings to grow by 4%-7%, reinforced by our investments in Salesforce headcount growth as well as AI-enabled productivity tools like The Zone.

•Employer Services new business bookings growth of 4% to 7%

•Adjusted EBIT margin expansion of 70 to 90 basis points

We expect Adjusted EBIT margin expansion of 70 to 90 basis points.

•Adjusted EBIT margin expansion of 70 to 90 basis points

•Increase in U.S. pays per control of about 1%

With U.S. pays per control growth remaining at 1% in the fourth quarter and for fiscal 2026, our outlook assumes a flat to 1% growth for fiscal 2027.

•Increase in U.S. pays per control of 0% to 1%

•Employer Services revenue growth of about 6%

Beginning with Employer Services, we expect revenue growth of 5%-6%, driven by the following key assumptions.

•Employer Services revenue growth of 5% to 6%

•PEO Services revenue growth of 5% to 7%

We expect PEO revenues to grow 5%-7% and PEO revenues excluding zero-margin pass-throughs to grow 3%-5% in fiscal 2027.

•PEO Services revenue growth of 5% to 7%

•Revenue growth of about 6%

Adding it all up, our consolidated revenue outlook calls for 5%-6% growth in fiscal 2027.

•Revenue growth of 5% to 6%

•PEO Services revenue, excluding zero-margin benefits pass-throughs, growth of 3% to 5%

We expect PEO revenues to grow 5%-7% and PEO revenues excluding zero-margin pass-throughs to grow 3%-5% in fiscal 2027.

•PEO Services revenue, excluding zero-margin benefits pass-throughs, growth of 3% to 5%

•Adjusted effective tax rate of approximately 23%

•Diluted EPS growth of 11% to 13%