BROADRIDGE FINANCIAL SOLUTIONS, INC. (BR): Results of Operations and Financial Condition
BROADRIDGE FINANCIAL SOLUTIONS, INC. (BR) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 Broadridge Reports Fourth Quarter and Fiscal Year 2026 Results Fiscal Year 2026 Recurring revenues grew 8% on a reported and constant currency basis Diluted EPS was $9.60 and Adjusted EPS grew 12% to $9.60 Closed sales rose to $305 million Raising annual dividend by
How this was made
The 30-second read
Why it matters
Traders can update models using the reported FY2026 EPS/recurring revenue and the explicit FY2027 ranges, and reassess capital return expectations after the 12% dividend increase.
Market read
The filing combines a full-year earnings print with quantified forward guidance and a dividend hike, creating a direct catalyst for BR’s near-term valuation and positioning.
What to watch
Effective tax rate rose versus the prior year quarter, and adjusted operating margin was roughly flat, which could limit multiple expansion even with EPS growth.
Broadridge Reports Fourth Quarter and Fiscal Year 2026 Results
Fiscal year 2026 recurring revenue grew 8% on a reported and constant currency basis, total revenue rose 9%, Adjusted EPS grew 12%, and the company issued fiscal year 2027 guidance for 6-8% recurring revenue growth constant currency and 8-12% Adjusted EPS growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fourth Quarter Total revenuesGAAP | $2,220 million | – | 7% |
| Fourth Quarter Recurring revenuesGAAP | $1,542 million | – | 8% |
| Fourth Quarter Recurring revenue growth constant currencynon-GAAP | 8% | – | – |
| Fourth Quarter Event-driven revenuesGAAP | $71 million | – | -10% |
| Fourth Quarter Distribution revenuesGAAP | $606 million | – | 8% |
| Fourth Quarter Operating incomeGAAP | $546 million | – | 10% |
| Fourth Quarter Operating income marginGAAP | 24.6% | – | – |
| Fourth Quarter Adjusted Operating incomenon-GAAP | $598 million | – | 7% |
| Fourth Quarter Adjusted Operating income marginnon-GAAP | 26.9% | – | – |
| Fourth Quarter Interest expense, netGAAP | $27 million | – | flat |
| Fourth Quarter effective tax rateGAAP | 23.7% | – | – |
| Fourth Quarter Net earningsGAAP | $398 million | – | 6% |
| Fourth Quarter Adjusted Net earningsnon-GAAP | $442 million | – | 5% |
| Fourth Quarter Diluted EPSGAAP | $3.44 | – | 9% |
| Fourth Quarter Adjusted EPSnon-GAAP | $3.82 | – | 8% |
| Fourth Quarter Closed salesother | $158 million | – | 39% |
| Fiscal Year Total revenuesGAAP | $7,477 million | – | 9% |
| Fiscal Year Recurring revenuesGAAP | $4,878 million | – | 8% |
| Fiscal Year Recurring revenue growth constant currencynon-GAAP | 8% | – | – |
| Fiscal Year Event-driven revenuesGAAP | $348 million | – | 9% |
| Fiscal Year Distribution revenuesGAAP | $2,251 million | – | 9% |
| Fiscal Year Operating incomeGAAP | $1,301 million | – | 9% |
| Fiscal Year Operating income marginGAAP | 17.4% | – | – |
| Fiscal Year Adjusted Operating incomenon-GAAP | $1,535 million | – | 9% |
| Fiscal Year Adjusted Operating income marginnon-GAAP | 20.5% | – | – |
| Fiscal Year Interest expense, netGAAP | $100 million | – | -$23 million |
| Fiscal Year effective tax rateGAAP | 22.2% | – | – |
| Fiscal Year Net earningsGAAP | $1,124 million | – | 34% |
| Fiscal Year Adjusted Net earningsnon-GAAP | $1,124 million | – | 11% |
| Fiscal Year Diluted EPSGAAP | $9.60 | – | 35% |
| Fiscal Year Adjusted EPSnon-GAAP | $9.60 | – | 12% |
| Fiscal Year Closed salesother | $305 million | – | 6% |
| Fiscal Year Free cash flow conversionnon-GAAP | 110% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ICS Fourth Quarter Total revenuesHigher Recurring revenues and Distribution revenues. | $1,732 million | – | 8% |
| ICS Fourth Quarter Recurring revenuesRecurring revenue growth constant currency was 10%, driven by 6pts of Internal Growth, 3pts of Net New Business, and 1pt from acquisitions. | $1,055 million | – | 10% |
| GTO Fourth Quarter Recurring revenuesRecurring revenue growth constant currency was 5%, driven by organic growth and the acquisition of CQG, Inc. | $488 million | – | 5% |
| ICS Fiscal Year Total revenuesHigher Recurring revenue and Event-driven revenue, partially offset by higher Operating expenses. | $5,561 million | – | 9% |
| ICS Fiscal Year Recurring revenuesRecurring revenue growth constant currency was 8%, driven by 7pts of organic growth. | $2,962 million | – | 8% |
| GTO Fiscal Year Recurring revenuesRecurring revenue growth constant currency was 7%, driven by 4pts of organic growth and 2pts from the acquisitions of Kyndryl’s Securities Industry Services business and CQG. | $1,916 million | – | 8% |
Fiscal Year 2027 outlook
- RevenueRecurring revenue growth constant currency (Non-GAAP) 6 - 8%
- NoteAdjusted Operating income margin (Non-GAAP) ~21%
- NoteAdjusted Earnings per share growth (Non-GAAP) 8 - 12%
- NoteFree cash flow conversion (Non-GAAP) 100%+
- NoteClosed sales $290 - $330 million
Capital returns
- Board approved a 12% increase in the annual dividend to $4.36 per share.
- 20th consecutive annual dividend increase.
- Strong Free cash flow conversion of 110% helped drive record share repurchases.
What drove it
- Fiscal year recurring revenue growth constant currency was driven by organic growth and acquisitions in ICS and GTO.
- Fiscal year event-driven revenues increased $29 million, or 9%, to $348 million, driven by higher equity and other communications.
- Fiscal year distribution revenues increased $189 million, or 9%, to $2,251 million, primarily driven by postage rate increases of approximately $123 million and higher volumes.
- ICS fiscal year Regulatory recurring revenue rose 12%, while Data-driven fund solutions rose 4%, Issuer rose 8%, and Customer communications rose 5%.
- GTO fiscal year Capital Markets recurring revenue rose 6% and Wealth and Investment Management recurring revenue rose 11%.
- GTO fiscal year earnings before income taxes increased by $96 million, or 48%, as higher revenues more than offset higher expenses, including the impact of the SIS and CQG acquisitions.
Concerns
- Fiscal year Adjusted Operating income margin was 20.5%, unchanged from the prior year, as higher distribution revenue and the impact of lower rates on float income negatively impacted margins by 40 basis points.
- ICS fiscal year Operating expenses rose 10%, or $398 million, to $4,457 million, driven by distribution expenses, other volume-related expenses and the impact of acquisitions.
- ICS fiscal year pre-tax margins decreased to 19.8% from 20.6%.
- Fourth quarter event-driven revenues decreased $8 million, or 10%, to $71 million, primarily due to lower mutual fund proxy revenues.
- Fourth quarter Corporate and Other loss before income taxes increased by $24 million, primarily due to a non-cash Loss on Digital Assets of $11 million and higher technology spending, including the impact of investments.
- The fiscal year effective tax rate increased to 22.2% from 20.7%, primarily driven by an increase in pre-tax income and a decrease in total discrete tax benefits.
What to watch
- Delivery against fiscal year 2027 guidance for 6 - 8% recurring revenue growth constant currency.
- Delivery against fiscal year 2027 guidance for 8 - 12% Adjusted Earnings per share growth.
- Whether Adjusted Operating income margin reaches the fiscal year 2027 guidance of ~21%.
- Closed sales relative to the fiscal year 2027 guidance range of $290 - $330 million.
- The effects of lower rates on float income, distribution revenue mix, acquisition-related expenses, and technology investments.
Balance sheet and cash flow
- Free cash flow conversion was 110%.
- Interest expense, net was $100 million, a decrease of $23 million, primarily due to lower average borrowings and lower borrowing costs.
Analysis
Broadridge reported broad fiscal year 2026 growth. Total revenues increased 9% to $7,477 million and recurring revenues increased 8% to $4,878 million. Recurring revenue growth constant currency was also 8%, with the company attributing the result to organic growth and acquisitions in ICS and GTO. Closed sales increased 6% to $305 million, while fourth quarter closed sales rose 39% to $158 million.
The mix showed growth across recurring, event-driven, and distribution revenues for the full year. Event-driven revenues increased 9% to $348 million on higher equity and other communications. Distribution revenues increased 9% to $2,251 million, primarily from postage rate increases of approximately $123 million and higher volumes. In the fourth quarter, however, event-driven revenues decreased 10% to $71 million because of lower mutual fund proxy revenues, while distribution revenue growth was primarily supported by postage rate increases of approximately $32 million.
Profitability improved in absolute dollars, but margin development was uneven. Fiscal year operating income increased 9% to $1,301 million and GAAP operating income margin increased to 17.4% from 17.3%. Adjusted Operating income increased 9% to $1,535 million, while Adjusted Operating income margin was unchanged at 20.5%. The company said higher distribution revenue and lower rates on float income negatively impacted margins by 40 basis points. Net earnings increased 34% to $1,124 million and diluted EPS increased 35% to $9.60, while Adjusted Net earnings increased 11% to $1,124 million and Adjusted EPS increased 12% to $9.60.
ICS remained the principal revenue contributor, with fiscal year total revenues of $5,561 million, up 9%, and recurring revenues of $2,962 million, up 8%. Its pre-tax margin decreased to 19.8% from 20.6% as Operating expenses rose 10%, or $398 million, to $4,457 million. GTO recurring revenues increased 8% to $1,916 million, and GTO earnings before income taxes increased 48% to $298 million, with pre-tax margin increasing to 15.5% from 11.3%.
Capital allocation included record share repurchases supported by 110% Free cash flow conversion and a Board-approved 12% increase in the annual dividend to $4.36 per share. For fiscal year 2027, Broadridge guided to 6 - 8% recurring revenue growth constant currency, ~21% Adjusted Operating income margin, 8 - 12% Adjusted EPS growth, Free cash flow conversion of 100%+, and closed sales of $290 - $330 million. The key reported pressure points are the lower-rate impact on float income, elevated distribution and volume-related expenses, acquisition-related costs, higher technology spending, and the fourth-quarter decline in event-driven revenue.
Management, verbatim
Broadridge is delivering strong results today while positioning our company for an exciting digital, agentic, and tokenized future,
Tim Gokey, Broadridge’s CEO
Fiscal year 2026 Recurring revenue growth constant currency was 8%, Adjusted EPS grew 12%, and Closed sales topped $305 million. Strong Free cash flow conversion of 110% helped drive record share repurchases. As a result, we achieved our three-year Recurring revenue and Adjusted EPS growth objectives for the fifth consecutive cycle.
Tim Gokey, Broadridge’s CEO
Our fiscal year 2027 guidance calls for another year of strong financial performance, with 6-8% Recurring revenue growth constant currency, 8-12% Adjusted EPS growth, Free cash flow conversion greater than 100%, and Closed sales of $290-330 million. I’m also pleased to announce that our Board has approved a 12% increase in our annual dividend to $4.36 per share, marking the fourteenth double-digit increase in the past fifteen years,
Tim Gokey, Broadridge’s CEO
Not in the filing
stated, not guessed- Fiscal year 2025 Net earnings value
- Fiscal year 2025 Adjusted Net earnings value
- Fourth quarter 2025 Net earnings value
- Fourth quarter 2025 Adjusted Net earnings value
- Prior-year values for fiscal year and fourth quarter event-driven revenues
- Prior-year values for fiscal year and fourth quarter distribution revenues
- Cash balance
- Debt balance
- Operating cash flow
- Free cash flow dollar amount
- Share repurchase dollar amount and share count
- Gross profit and gross margin
- Consolidated operating expenses
- Fiscal year 2027 total revenue guidance
- Fiscal year 2027 gross margin guidance
- Fiscal year 2027 operating expense guidance
- Fiscal year 2027 tax-rate guidance
- Prior-quarter comparisons
- Total revenue for the GTO segment
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with Broadridge’s Q4 and full fiscal year 2026 results and FY2027 guidance.
Ticker impact
Broadridge reported FY2026 results and issued FY2027 guidance for 6-8% recurring revenue growth and 8-12% adjusted EPS growth.
Moderately positive bias for BR as guidance and dividend raise support earnings and capital-return expectations.
The filing includes specific FY2026 EPS and recurring revenue growth, plus a quantified FY2027 outlook and a board-approved dividend hike, all of which are actionable for valuation and positioning.
Market effects
Supports sentiment for financial market infrastructure and capital markets software/services names via continued recurring revenue growth and digital transformation narrative.
Primarily US-listed large-cap impact; limited direct regional spillover beyond broader market-infrastructure sentiment.
Tokenized-asset and capital-markets digitization themes may reinforce global investor appetite for market infrastructure providers.
Counterpoint
Guidance is growth-oriented but not a clear acceleration versus prior performance, so upside may be capped if investors expected a step-change in margins or closed sales.
Key entities
- companyBroadridge Financial Solutions, Inc.
Reported Q4 and FY2026 results, announced FY2027 guidance ranges, and approved a 12% annual dividend increase.
- executiveTim Gokey
CEO quoted on performance and FY2027 guidance.
