The Investor
03 Nov 2026, 16:03
Broadridge Reaffirms FY27 Outlook as Recurring Revenue Grows 11%
Broadridge Financial Solutions (NYSE: BR) reported a solid start to fiscal 2027, with double-digit recurring revenue growth and stronger closed sales, while profitability was pressured by lower event-driven revenue and higher expenses.
First-quarter recurring revenue increased 11% to $1.08 billion, including 9% organic growth. Total revenue rose 5% to $1.67 billion, while closed sales increased 10% to $36 million.
Adjusted EPS rose 3% to $1.56 from $1.51. However, adjusted operating income declined 9% to $230 million and adjusted operating margin fell to 13.8% from 15.8%. GAAP operating income decreased 8% to $174 million.
The Investor Communication Solutions segment posted 10% recurring revenue growth, helped by regulatory and data-driven fund solutions. However, event-driven revenue fell 41% to $67 million, largely due to lower mutual fund proxy activity.
Global Technology and Operations remained stronger. Recurring revenue increased 12% to $516 million, or 13% at constant currency, while pre-tax earnings rose 47% to $99 million. Capital Markets recurring revenue grew 17%, supported by organic growth and the CQG acquisition.
Broadridge reaffirmed its fiscal 2027 guidance for 6%-8% recurring revenue growth at constant currency, 8%-12% adjusted EPS growth, adjusted operating margin of about 21% and closed sales of $290 million-$330 million.
The company also continued returning capital to shareholders, repurchasing $200 million of stock during the quarter and paying $111 million in dividends.
Broadridge Financial Solutions (NYSE: BR) reported a solid start to fiscal 2027, with double-digit recurring revenue growth and stronger closed sales, while profitability was pressured by lower event-driven revenue and higher expenses.
First-quarter recurring revenue increased 11% to $1.08 billion, including 9% organic growth. Total revenue rose 5% to $1.67 billion, while closed sales increased 10% to $36 million.
Adjusted EPS rose 3% to $1.56 from $1.51. However, adjusted operating income declined 9% to $230 million and adjusted operating margin fell to 13.8% from 15.8%. GAAP operating income decreased 8% to $174 million.
The Investor Communication Solutions segment posted 10% recurring revenue growth, helped by regulatory and data-driven fund solutions. However, event-driven revenue fell 41% to $67 million, largely due to lower mutual fund proxy activity.
Global Technology and Operations remained stronger. Recurring revenue increased 12% to $516 million, or 13% at constant currency, while pre-tax earnings rose 47% to $99 million. Capital Markets recurring revenue grew 17%, supported by organic growth and the CQG acquisition.
Broadridge reaffirmed its fiscal 2027 guidance for 6%-8% recurring revenue growth at constant currency, 8%-12% adjusted EPS growth, adjusted operating margin of about 21% and closed sales of $290 million-$330 million.
The company also continued returning capital to shareholders, repurchasing $200 million of stock during the quarter and paying $111 million in dividends.
