| Automatic Data Processing, Inc. and Subsidiaries |
| Fiscal 2025 to Fiscal 2026 Non-GAAP Guidance Reconciliation |
| (in millions, except per share amounts) | | | | | |
| (Unaudited) | | | | | |
| | | | | Fiscal 2026 |
| | | Fiscal 2025 | | Outlook |
| Earnings before income taxes / margin (GAAP) | | $ | 5,310.1 | | 25.8 | % | | 40 to 60 bps |
| All other interest expense (a) | | 114.8 | 60 bps | | 10 bps |
| All other interest income (a) | | (94.2) | (50) bps | | 10 bps |
| Gain on sale of assets - FY25 | | (2.6) | - | | - |
| Transformation initiatives - FY25 | | 0.1 | - | | - |
| Legal settlements - FY25 | | (0.4) | - | | - |
| Optimization initiatives - FY25 | | 19.3 | 10 bps | | (10) bps |
| Adjusted EBIT margin (Non-GAAP) | | $ | 5,347.1 | | 26.0 | % | | 50 to 70 bps |
| | | | | | |
| Effective tax rate (GAAP) | | | 23.2 | % | | 23.0 | % |
| Transformation initiatives - FY25 | | | - | | - |
| Legal settlements - FY25 | | | - | | - |
| Optimization initiatives - FY25 | | | - | | - |
| Adjusted effective tax rate (Non-GAAP) | | | 23.2 | % | | 23.0 | % |
| | | | | | |
| Diluted earnings per share (GAAP) | | | $ | 9.98 | | | 8% to 10% |
| Transformation initiatives - FY25 | | | - | | - |
| Legal settlements - FY25 | | | - | | - |
| Optimization initiatives - FY25 | | | 0.03 | | | - |
| Adjusted diluted earnings per share (Non-GAAP) | | | $ | 10.01 | | | 8% to 10% |
| | | | | | |
