Broadridge Financial Solutions Q4 Earnings Call Highlights

Key Points

• Fiscal 2026 results were strong: Broadridge reported 8% constant-currency recurring-revenue growth to $4.9 billion and a 12% increase in adjusted EPS to $9.60. Fourth-quarter sales were a record $158 million, bringing the full-year total to $305 million.
• Fiscal 2027 guidance calls for continued growth: The company expects recurring-revenue growth of 6% to 8% and adjusted EPS growth of 8% to 12%, supported by a $470 million sales backlog and projected $25 million in AI-driven productivity gains.
• Broadridge is expanding capital returns and digital capabilities: The board raised the annual dividend 12% to $4.36 per share and increased the buyback authorization to $1.5 billion, while the company advances AI, tokenized-asset platforms and digital communications.

Broadridge Financial Solutions NYSE: BR reported fiscal 2026 recurring revenue growth of 8% on a constant-currency basis and a 12% increase in adjusted earnings per share, as the company cited demand for governance, capital-markets and wealth-management technology alongside investments in artificial intelligence and tokenized-market infrastructure.

Adjusted EPS for the year rose to $9.60, while recurring revenue reached $4.9 billion. Fourth-quarter recurring revenue increased 8% on a constant-currency basis to $1.5 billion, and adjusted EPS rose 8% to $3.82. The company closed a record $158 million in sales during the fourth quarter, bringing full-year closed sales to $305 million.

“The real story of fiscal 2026 is that Broadridge is delivering today, building for tomorrow,” Chief Executive Officer Tim Gokey said, pointing to the company’s work in digital communications, agentic AI and tokenized assets.

Fiscal 2027 Outlook and Capital Returns

For fiscal 2027, Broadridge guided for constant-currency recurring revenue growth of 6% to 8% and adjusted EPS growth of 8% to 12%. The outlook includes expected organic growth of 5% to 7%, with acquisitions contributing another percentage point to recurring revenue growth.

Chief Financial Officer Ash Ghei said the company’s $470 million closed-sales backlog, up $40 million from the prior year, provides visibility into growth in fiscal 2027 and 2028. Broadridge expects closed sales of $290 million to $330 million in fiscal 2027.

The company forecast adjusted operating income margin of about 21%, compared with 20.5% in fiscal 2026. It expects $25 million of AI-driven productivity gains during fiscal 2027, primarily in its technology organization, which it plans to use to support investments and earnings growth.

Broadridge generated $1.2 billion in free cash flow during fiscal 2026, up 17% year over year, representing 110% of adjusted earnings. The company repurchased a record $600 million of shares and paid $443 million in dividends. Its board approved a 12% increase in the annual dividend to $4.36 per share and increased the share-repurchase authorization to $1.5 billion.

Gokey said the company expects to maintain balanced capital allocation, including internal investment, dividends, selective acquisitions and share repurchases. He said Broadridge views its shares as a compelling value at current levels and anticipates “continued healthy levels” of repurchases while retaining capacity for tuck-in acquisitions.

Segment Performance

Investor Communication Solutions, or ICS, recurring revenue rose 8% for the full year and 10% in the fourth quarter. Regulatory revenue increased 12% for the year and 14% in the fourth quarter, supported by equity and fund position growth. Fourth-quarter equity position growth was 17%, including 14% growth in revenue-generating positions, while fund positions grew 7%.

Data-Driven Fund Solutions revenue grew 4% for the full year and 7% in the fourth quarter. Issuer revenue increased 8% in both periods. Customer Communications revenue rose 5% for the year, including 14% growth in digital revenue, though it grew 1% in the fourth quarter as a contribution from the Signal acquisition offset lower print volumes.

Global Technology and Operations, or GTO, revenue grew 7% for the year and 5% in the fourth quarter. Capital-markets revenue increased 5% for the full year and 7% in the quarter, with the recently acquired CQG contributing three percentage points to fourth-quarter growth. Wealth and investment-management revenue rose 10% for the full year and 1% in the quarter; excluding lower term-license revenue, fourth-quarter growth was 5%.

Broadridge expects GTO revenue growth to fall at the higher end of its overall recurring-revenue guidance range in fiscal 2027, partly due to the CQG acquisition.

Digital Delivery, AI and Tokenization

The company said its proxy-communications digitization rate is nearing 95%, while fund communications are 80% digital. Gokey said Broadridge views the Securities and Exchange Commission’s proposed electronic-delivery rule as a potential catalyst for digital-first client communications, although Ghei said the company expects no fiscal 2027 impact from the proposal.

Looking beyond fiscal 2027, Ghei said the rule could reduce pass-through distribution revenue and create a modest recurring-revenue growth headwind over two to three years as clients implement changes. He said Broadridge expects to largely offset that effect with new digital solutions and does not anticipate a significant impact on adjusted earnings growth.

Broadridge also emphasized its expansion in tokenized securities and digital assets. Its Distributed Ledger Repo platform processed $360 billion in tokenized repo transactions daily in June, up threefold from May 2025, according to Gokey. The company expects platform volume to rise 50% by December as it onboards additional Tier 1 banks.

The company announced governance relationships with synthetic tokenized-equity issuer Ondo and infrastructure provider Alpaca, while noting that it completed what it described as the first on-chain voting for tokenized equities with Galaxy. Broadridge is also launching DLX, a multi-asset tokenization and digital-asset platform that will extend its DLR capabilities to equities, funds, alternatives and money-market instruments.

Gokey said platform-enabled AI and next-generation products, including shareholder engagement, digital communications and DLR, rose 60% and represented nearly 40% of closed sales during fiscal 2026. He added that Broadridge’s sales pipeline was up by more than one-third from a year earlier, with about half of the pipeline now platform enabled.

About Broadridge Financial Solutions (NYSE:BR)

Broadridge Financial Solutions is a global fintech company that provides technology-driven solutions and outsourcing services to the financial services industry. The firm's core offerings center on investor communications, securities processing and post-trade services, and technology platforms that support capital markets and wealth management operations. Broadridge positions itself as a provider of mission-critical infrastructure that helps financial institutions manage regulatory requirements, investor engagement and operational complexity.

Products and services include proxy and shareholder communications, investor disclosure and digital communications, proxy voting and tabulation, clearing and settlement support, trade processing and reconciliation, and a range of software-as-a-service platforms for wealth and asset managers.

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