Broadridge tops Q1 profit estimates, reaffirms fiscal 2027 guidance

Broadridge Financial Solutions (BR) topped the $1.41 consensus estimate for adjusted earnings per share in its fiscal first quarter, the company said on Nov. 3, 2026. Revenue of $1.67 billion was below the $1.7 billion estimate.

Adjusted EPS was $1.56 for the quarter ended Sept. 30, 2026, up 3% from $1.51 a year earlier. The company provides investing, governance and communications technology to the financial services industry, and it employs approximately 16,000 associates in 28 countries.

Here's how the company did:

• Adjusted EPS: $1.56 vs. $1.51 a year earlier
• Diluted EPS: $0.83 vs. $1.40 a year earlier
• Revenue: $1.67 billion vs. $1.59 billion a year earlier

Recurring revenue grew 11% on a reported basis and in constant currency, with 9 points from organic growth, the company said. Closed sales rose 10% to $36 million.

"Broadridge is driving digital engagement, scaling agentic AI, and accelerating tokenization while delivering strong financial results," CEO Tim Gokey said.

Segment results

Investor Communication Solutions revenue rose 2% to $1.15 billion. Recurring revenue in the segment rose 10% to $568 million, and regulatory revenue rose 17%.

Segment earnings before income taxes fell 18% to $104 million. Operating expenses rose 5% to $1.05 billion, driven by distribution and technology costs and the impact of acquisitions.

Global Technology and Operations recurring revenue rose 12% to $516 million. Capital Markets revenue rose 17%, including 5 points from the CQG acquisition.

Segment earnings before income taxes rose 47% to $99 million, as higher revenue more than offset higher expenses.

Revenue has risen in each of the last three quarters, from $1.59 billion in the first quarter of fiscal 2026 to $2.22 billion in the fourth quarter, according to its SEC filings.

Fiscal 2027 guidance

The company reaffirmed its fiscal 2027 guidance with no changes. It expects recurring revenue growth of 6% to 8% in constant currency, adjusted EPS growth of 8% to 12%, an adjusted operating income margin of about 21%, free cash flow conversion of 100% or more, and closed sales of $290 million to $330 million.

Broadridge will hold an Investor Day on Dec. 8, 2026, in New York City, where its executive leadership team will provide new three-year financial objectives.

Costs and capital returns

Loss before income taxes in Corporate and Other was $93 million. It included a $40 million non-cash loss on digital assets and $15 million of restructuring costs.

The restructuring costs were severance tied to workforce actions linked to the company's AI and productivity initiatives. The company said it continues to evaluate expanding these actions.

The company repurchased $200 million of its shares in the quarter and paid $111 million in dividends.