BR · Broadridge Financial Solutions, Inc.

Broadridge Financial Solutions reported strong fiscal third quarter 2026 results, with total revenues increasing 8% to $1,954 million and recurring revenues up 7% (6% constant currency) to $1,288 million. Growth was driven by Investor Communication Solutions (ICS) recurring revenue up 8% constant currency, fueled by 11% equity revenue position growth and 6% mutual fund/ETF position growth, along with contributions from acquisitions. Global Technology and Operations (GTO) recurring revenue grew 3% constant currency, with wealth and investment management up 8% offset by capital markets flat due to lower software term license revenue. Operating income rose 4% to $359.5 million, with GAAP margin declining 60 bps to 18.4% due to higher distribution expenses and float income impact; adjusted operating income margin fell 90 bps to 21.5%. Net earnings increased 14% to $276.3 million, and diluted EPS grew 15% to $2.36. Adjusted EPS rose 11% to $2.72, benefiting from lower interest expense and a lower effective tax rate (18.9% vs 21.8%). Management highlighted strong investor participation trends and execution on strategic initiatives including tokenization, digital communications, and AI. The company raised its fiscal 2026 guidance: recurring revenue growth constant currency to at or above 7% (from higher end of 5-7%), adjusted EPS growth to 10-12% (from 9-12%), while maintaining adjusted operating margin guidance of 20-21%. Closed sales guidance was revised down to $240-290 million from $290-330 million. Additionally, Broadridge completed the acquisition of CQG, a futures/options execution management system provider, for approximately $173 million on April 30, 2026, which will be reported in GTO. Free cash flow for the nine months was $590.9 million, up from $393.2 million in the prior year period, supporting balanced capital allocation including share repurchases and dividends.