Broadridge Financial Solutions (NYSE:BR) Posts Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Broadridge Financial Solutions (NYSE:BR) issued its quarterly earnings results on Tuesday. The business services provider reported $3.82 EPS for the quarter, topping the consensus estimate of $3.76 by $0.06, Zacks reports. The firm had revenue of $2.22 billion during the quarter, compared to analysts’ expectations of $2.17 billion. Broadridge Financial Solutions had a return on equity of 40.25% and a net margin of 15.04%.The firm’s revenue for the quarter was up 7.5% on a year-over-year basis. During the same period in the previous year, the business earned $3.55 earnings per share. Broadridge Financial Solutions updated its FY 2027 guidance to 10.370-10.750 EPS.

Here are the key takeaways from Broadridge Financial Solutions’ conference call:

• Strong fiscal 2026 performance: Recurring revenue grew 8% in constant currency to $4.9 billion, adjusted EPS rose 12% to $9.60, free cash flow increased 17% to $1.2 billion, and closed sales reached a record $305 million.
• Healthy outlook for fiscal 2027: Broadridge guided to 6%-8% recurring-revenue growth and 8%-12% adjusted EPS growth, supported by a $470 million sales backlog, continued equity and fund position growth, and $25 million of expected AI-driven productivity gains.
• Tokenization is emerging as a major growth opportunity: DLR processed $360 billion in tokenized repo transactions in June, with additional Tier 1 clients onboarding and expected volume growth of 50% by December. The planned DLX platform will extend tokenization across equities, funds, alternatives, money-market instruments, and related servicing.
• Capital returns remain a priority: The company repurchased a record $600 million of stock in fiscal 2026, raised its dividend 12% to $4.36 per share, and increased its repurchase authorization to $1.5 billion while maintaining leverage at 1.9x.
• Event-driven revenue is expected to moderate: Fiscal 2027 event-driven revenue is forecast at $250 million-$300 million after a record fiscal 2026, while the SEC’s proposed e-delivery rule could create a modest recurring-revenue headwind over two to three years, although management expects limited impact on earnings growth.

Broadridge Financial Solutions Trading Down 0.5%

Shares of NYSE:BR traded down $0.82 during mid-day trading on Thursday, reaching $162.59. 62,941 shares of the company were exchanged, compared to its average volume of 1,428,012. Broadridge Financial Solutions has a 1 year low of $133.83 and a 1 year high of $271.91. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.24 and a quick ratio of 0.94. The firm’s 50-day simple moving average is $147.70 and its 200 day simple moving average is $163.24. The firm has a market cap of $18.81 billion, a price-to-earnings ratio of 16.85 and a beta of 0.87.

Broadridge Financial Solutions Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 5th. Investors of record on Thursday, September 3rd will be given a dividend of $1.09 per share. This represents a $4.36 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Thursday, September 3rd. This is an increase from Broadridge Financial Solutions’s previous quarterly dividend of $0.97. Broadridge Financial Solutions’s dividend payout ratio is 45.32%.

Insider Activity at Broadridge Financial Solutions

In other news, insider Hope M. Jarkowski sold 1,966 shares of Broadridge Financial Solutions stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $155.00, for a total value of $304,730.00. Following the completion of the sale, the insider directly owned 1 shares of the company’s stock, valued at approximately $155. The trade was a 99.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 1.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Invesco Ltd. increased its position in shares of Broadridge Financial Solutions by 7.9% during the fourth quarter. Invesco Ltd. now owns 1,547,488 shares of the business services provider’s stock worth $345,353,000 after acquiring an additional 113,806 shares during the period. Axxcess Wealth Management LLC increased its holdings in Broadridge Financial Solutions by 17.6% during the 4th quarter. Axxcess Wealth Management LLC now owns 32,247 shares of the business services provider’s stock worth $7,197,000 after purchasing an additional 4,833 shares during the period. Corient Private Wealth LLC increased its holdings in Broadridge Financial Solutions by 4.0% during the 4th quarter. Corient Private Wealth LLC now owns 473,957 shares of the business services provider’s stock worth $104,671,000 after purchasing an additional 18,173 shares during the period. Mercer Global Advisors Inc. ADV raised its position in Broadridge Financial Solutions by 12.0% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 15,015 shares of the business services provider’s stock valued at $3,206,000 after purchasing an additional 1,607 shares in the last quarter. Finally, Caitlin John LLC purchased a new position in shares of Broadridge Financial Solutions in the 4th quarter valued at about $281,000. Hedge funds and other institutional investors own 90.03% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. DA Davidson lowered their price target on shares of Broadridge Financial Solutions from $228.00 to $214.00 and set a “buy” rating on the stock in a research report on Tuesday, May 5th. UBS Group dropped their price target on Broadridge Financial Solutions from $250.00 to $165.00 and set a “neutral” rating for the company in a research report on Monday, May 4th. Needham & Company LLC cut their price target on Broadridge Financial Solutions from $255.00 to $230.00 and set a “buy” rating for the company in a report on Friday, May 1st. Royal Bank Of Canada lifted their price objective on Broadridge Financial Solutions from $200.00 to $225.00 and gave the stock an “outperform” rating in a research report on Wednesday. Finally, Weiss Ratings lowered Broadridge Financial Solutions from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, May 11th. Four research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $225.14.

Broadridge Financial Solutions Company Profile

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.