Broadridge Reports First Quarter Fiscal 2027 Results
BROADRIDGE FINANCIAL SOLUTIONS, INC. (BR) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 Broadridge Reports First Quarter Fiscal 2027 Results Recurring revenues grew 11% on a reported and constant currency basis Diluted EPS was $0.83 and Adjusted EPS grew 3% to $1.56 Closed sales grew 10% to $36 million Reaffirming FY’27 guidance, including 6-8% Recurrin
Facts are quoted from the filing text and checked against it. Details that could not be matched to the text are left out.
How this was made
The 30-second read
Why it matters
The reaffirmed guidance and sizable share repurchase provide a mixed signal, balancing short‑term earnings weakness with long‑term confidence.
Market read
The earnings release is material for investors in BR and peers in the financial‑technology space.
What to watch
Event‑driven revenue decline and tax benefits may mask underlying profitability trends.
Recurring revenues grew 11% on a reported and constant currency basis; diluted EPS was $0.83 and Adjusted EPS grew 3% to $1.56; FY’27 guidance was reaffirmed.
Recurring revenue, closed sales, Adjusted EPS and free cash flow improved, but total revenue growth was moderated by lower event-driven revenue and GAAP operating income, net earnings and diluted EPS declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $1.67B | – | 5% |
| Recurring revenuesGAAP | $1.08B | – | 11% |
| Recurring revenue growth constant currencynon-GAAP | 11% | – | 11% |
| Event-driven revenuesGAAP | $67.4M | – | (41%) |
| Distribution revenuesGAAP | $518.2M | – | 4% |
| Cost of revenuesGAAP | $1.24B | – | – |
| Selling, general and administrative expensesGAAP | $254.9M | – | – |
| Total operating expensesGAAP | $1.50B | – | – |
| Operating incomeGAAP | $173.5M | – | (8%) |
| Operating income marginGAAP | 10.4% | – | – |
| Adjusted Operating incomenon-GAAP | $229.6M | – | (9%) |
| Adjusted Operating income marginnon-GAAP | 13.8% | – | – |
| Interest expense, netGAAP | $27.1M | – | – |
| Other non-operating income (expenses), netGAAP | −$36.7M | – | – |
| Earnings before income taxesGAAP | $109.7M | – | – |
| Effective tax rateGAAP | 13.6% | – | – |
| Provision for income taxesGAAP | $14.9M | – | – |
| Net earningsGAAP | $94.8M | – | (43%) |
| Adjusted Net earningsnon-GAAP | $177.9M | – | flat |
| Basic earnings per shareGAAP | $0.83 | – | – |
| Diluted earnings per shareGAAP | $0.83 | – | (41%) |
| Adjusted earnings per sharenon-GAAP | $1.56 | – | 3% |
| Weighted-average shares outstanding, basicGAAP | 113.6M | – | – |
| Weighted-average shares outstanding, dilutedGAAP | 114.3M | – | – |
| Closed salesother | $35.6M | – | 10% |
| Equity positionsother | 16% | – | – |
| Equity revenue positionsother | 11% | – | – |
| Mutual fund / ETF positionsother | 16% | – | – |
| Internal Trade Growthother | 7% | – | – |
| Net cash flows from operating activitiesGAAP | $93.2M | – | – |
| Capital expendituresGAAP | −$15.3M | – | – |
| Software purchases and capitalized internal use softwareGAAP | −$1.6M | – | – |
| Free cash flownon-GAAP | $76.3M | – | – |
| Cash and cash equivalentsGAAP | $284.1M | – | – |
| Long-term debtGAAP | $3.35B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Investor Communication SolutionsRecurring revenues increased $50 million, or 10%, to $567.6 million, while event-driven revenues decreased $46 million, or 41%, to $67.4 million and distribution revenues increased $20 million, or 4%, to $518.2 million. | $1.15B | – | 2% |
| Global Technology and OperationsRecurring revenue growth constant currency was 13%, driven by 10pts of Organic growth and 3pts from the acquisition of CQG, Inc. (“CQG”). | $515.5M | – | 12% |
| ICS RegulatoryEquity revenue position growth was 11% and Mutual fund/ETF position growth was 16%. | $230.3M | – | 17% |
| ICS Data-driven fund solutionsGrowth from the acquisitions of Acolin and iJoin and in data and analytics revenues. | $121.6M | – | 10% |
| ICS IssuerGrowth in disclosure solutions. | $34M | – | 4% |
| ICS Customer communicationsGrowth in digital and print revenues, as well as the acquisition of Signal Agency Limited (“Signal”). | $181.6M | – | 3% |
| GTO Capital marketsDriven by 12pts of Organic growth, including a 4pt benefit from higher software term license revenues and 5pts from the acquisition of CQG. | $327.2M | – | 17% |
| GTO Wealth and investment managementAll Organic, including 3pts of higher software term license revenues. | $188.3M | – | 5% |
FY’27 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
- NoteOperating income margin % (GAAP) ~19%
- NoteDiluted earnings per share (GAAP) (8%) - (4%)
- NoteCash flow from operating activities relative to net earnings (GAAP) 100% +
- NoteImpact of foreign currency exchange (0%) - 0%
Capital returns
- Dividends paid $(111.2) million
- Purchases of Treasury stock $(200.2) million
- The Company repurchased $200 million in the quarter while returning an additional $111 million to shareholders via its dividend.
What drove it
- Recurring revenue growth constant currency was 11%, driven by 9pts from Organic growth.
- Distribution revenues increased $20 million, or 4%, driven primarily by the postage rate increase of approximately $18 million.
- GTO recurring revenue growth constant currency was 13%, driven by 10pts of Organic growth and 3pts from the CQG acquisition.
- ICS earnings before income taxes were affected by higher Recurring revenue, lower Event-driven revenues and higher Operating expenses.
- GTO earnings before income taxes increased as higher revenues more than offset higher expenses.
Concerns
- Event-driven revenues decreased $46 million, or 41%, to $67 million, as lower mutual fund proxy revenues were partially offset by higher equity and other revenue.
- Operating income decreased $15 million, or 8%, and Adjusted Operating income decreased $22 million, or 9%.
- Corporate and Other loss before income taxes decreased $112 million due to non-cash Losses on Digital Assets of $40 million in the current year period compared to a gain of $46 million in the prior year period, and Restructuring and Other Related Costs of $15 million.
- Operating expenses in ICS rose 5%, or $46 million, and operating expenses in GTO rose 6%, or $25 million.
What to watch
- FY’27 recurring revenue growth constant currency guidance of 6 - 8%.
- FY’27 Adjusted Operating income margin guidance of ~21%.
- FY’27 Adjusted earnings per share growth guidance of 8 - 12%.
- FY’27 Free cash flow conversion guidance of 100%+.
- FY’27 Closed sales guidance of $290 - $330 million.
- Broadridge Investor Day on Tuesday, December 8, 2026, when executive leadership will provide new three-year financial objectives.
Balance sheet and cash flow
- Cash and cash equivalents were $284.1 million at September 30, 2026, compared to $402.9 million at June 30, 2026.
- Long-term debt was $3,347.1 million at September 30, 2026, compared to $3,254.6 million at June 30, 2026.
- Net cash flows from operating activities were $93.2 million, compared to $42.3 million.
- Free cash flow was $76.3 million, compared to $12.7 million.
- Net cash flows from financing activities were $(192.4) million, compared to $(214.2) million.
Analysis
Broadridge reported first-quarter fiscal 2027 total revenues of $1,668.7 million, up 5%, with recurring revenues of $1,083.1 million up 11%. Recurring revenue growth constant currency was also 11% and included 9pts from Organic growth. Total growth was held back by event-driven revenues, which declined 41% to $67.4 million as lower mutual fund proxy revenues were only partly offset by higher equity and other revenue. Distribution revenues increased 4% to $518.2 million, primarily reflecting the postage rate increase of approximately $18 million.
Investor Communication Solutions generated $1,153.2 million of revenue, up 2%. Its recurring revenue rose 10% to $567.6 million, led by Regulatory growth of 17% and Data-driven fund solutions growth of 10%, while its event-driven revenues fell 41%. Global Technology and Operations generated $515.5 million of revenue, up 12%, and reported 13% recurring revenue growth constant currency. GTO benefited from 10pts of Organic growth and 3pts from the CQG acquisition, with Capital markets revenue up 17% and Wealth and investment management revenue up 5%.
Profitability declined on both a reported and adjusted basis. GAAP operating income fell 8% to $173.5 million and the operating income margin was 10.4%, compared with 11.9%. Adjusted Operating income declined 9% to $229.6 million and its margin was 13.8%, compared with 15.8%. GAAP net earnings fell 43% to $94.8 million and diluted EPS declined 41% to $0.83. Adjusted Net earnings were $177.9 million compared with $178.1 million, while Adjusted EPS increased 3% to $1.56. The current period included Gains or Losses on Digital Assets of $40.2 million and Restructuring and Other Related Costs of $15.2 million in the adjusted earnings reconciliation.
Cash generation improved, with operating cash flow of $93.2 million compared with $42.3 million and free cash flow of $76.3 million compared with $12.7 million. The company paid $111.2 million in dividends and purchased $200.2 million of Treasury stock. Cash and cash equivalents were $284.1 million at September 30, 2026, while long-term debt was $3,347.1 million. Broadridge reaffirmed FY’27 guidance for 6 - 8% recurring revenue growth constant currency, ~21% Adjusted Operating income margin, 8 - 12% Adjusted EPS growth, 100%+ free cash flow conversion and $290 - $330 million of closed sales.
Management, verbatim
Broadridge is driving digital engagement, scaling agentic AI, and accelerating tokenization while delivering strong financial results.
Tim Gokey, Broadridge CEO
Fiscal first quarter Recurring revenue grew 11% constant currency, including 9% Organic growth, and Closed sales rose 10% to $36 million. Adjusted EPS increased 3% to $1.56.
Tim Gokey, Broadridge CEO
With a strong start to the year, we are reaffirming our fiscal year 2027 guidance, including 6-8% Recurring revenue growth constant currency, 8-12% Adjusted EPS growth, Free cash flow conversion of 100%+, and strong Closed sales of $290-$330 million.
Tim Gokey, Broadridge CEO
Not in the filing
stated, not guessed- Gross margin for the first quarter fiscal 2027 and first quarter fiscal 2026 was not reported.
- Gross-margin guidance was not reported.
- Operating-expense guidance was not reported.
- Tax-rate guidance was not reported.
- Prior-quarter figures for income-statement and cash-flow metrics were not reported.
- A previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. 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
Broadridge Financial Solutions (NYSE:BR) filed an 8‑K reporting its Q1 FY2027 earnings, showing revenue growth but a sharp drop in diluted EPS.
Ticker impact
Broadridge reported Q1 FY2027 results, reaffirming FY27 guidance and announcing a $200M share repurchase.
likely modest pressure as EPS fell sharply, tempered by buyback support.
The EPS decline signals short‑term downside, but the $200M repurchase and unchanged guidance may limit the sell‑off.
Market effects
Strong recurring‑revenue growth may boost fintech service providers.
U.S. market participants may adjust exposure to financial‑technology stocks.
Limited; impact confined to U.S. listed fintech sector.
Counterpoint
Buyback could signal confidence, suggesting a longer‑term upside despite the EPS miss.
Key entities
- ExecutiveTim Gokey
CEO of Broadridge who commented on the results and buyback.
