Financial research concept

Payroll Client Funds Average Yield

Payroll Client Funds Average Yield measures the average interest rate ADP earns on funds held for clients.

By Lee BaileyPublished Sep 24, 2026
Research context

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Research date
Sep 24, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context
15 connected conceptsPart of the reviewed Payroll & HCM Economics; issuer definitions remain distinct where disclosed.
Company examples
1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.
  1. Why it matters
  2. Investor caution
  3. Part of the Payroll & HCM Economics
  4. See It in Company Research
  5. Continue Research

Payroll Client Funds Average Yield measures the average interest rate earned on ADP's funds held for clients.

ADP reported an average client-funds yield of 3.4% in fiscal 2026, up from 3.2% in fiscal 2025.

Why it matters

Yield links the client-funds balance to interest income. Changes in market rates, portfolio duration, reinvestment timing, and the mix of short, extended, and long client-funds portfolios affect the realized rate.

Investor caution

The average yield is not the Federal Funds rate or the yield on newly purchased securities. ADP's portfolio contains securities acquired at different times and maturities, so changes in market rates flow through with a lag.

Source:

Part of the Payroll & HCM Economics

Connect recurring Employer Services economics, PEO worksite and benefits-pass-through economics, and client-funds float earnings to understand payroll and HCM business economics.

How the model fits together
  • Employer Services growth and retention: Employer Services revenue combines recurring payroll and HCM relationships with new business starts, client revenue retention, pricing, pays per control, and other drivers. New business bookings are an earlier sales measure, while organic constant-currency growth and segment margin show later revenue and profitability outcomes.
  • PEO worksite volume and pass-through economics: PEO revenue combines service economics with zero-margin benefits pass-throughs. Revenue excluding pass-throughs isolates the service revenue base, average worksite employees adds the core population driver, and segment margin shows profitability against the issuer's reported revenue denominator.
  • Client-funds balance, yield, and earnings: Average client funds balances multiplied by portfolio yield provide the core economic bridge into interest revenue, while the extended investment strategy net impact includes additional investment and financing effects. Client funds remain restricted by corresponding client obligations rather than functioning as unrestricted corporate cash.

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

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Compare payroll and HCM stocks

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