10-Q · April 30, 2026
Broadridge Financial reported its fiscal Q3 2026 with revenues of $1.954 billion, projecting a notable increase of approximately 7.6% from the prior quarter and a year-over-year growth of 7%. Gross margins improved to…
Earnings analysis · 10-K
BR earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Broadridge delivered a solid FY2026 operating performance, with revenue up 9% to $7.477B, recurring revenue up 8%, and FCF up 17% to $1.233B. GTO provided the key profitability inflection, expanding pre-tax margin to…
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Broadridge delivered a solid FY2026 operating performance, with revenue up 9% to $7.477B, recurring revenue up 8%, and FCF up 17% to $1.233B. GTO provided the key profitability inflection, expanding pre-tax margin to 15.5%, while ICS growth remained robust but its pre-tax margin fell 0.8 points to 19.8%. GAAP earnings benefited materially from $227.0M of digital-asset gains, and the proposed SEC e-delivery rule creates a medium-term structural headwind to paper-based communications despite management's expectation of no FY2027 impact.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $9.6
What stood out
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Three-year revenue and operating-income expansion
FY2026 revenue rose 9% to $7.477B, following 6% growth to $6.889B in FY2025 and 6% growth to $6.507B in FY2024. GAAP operating income rose to $1.301B from $1.189B and $1.017B, respectively, with operating margin broadly stable at 17.4% versus 17.3% in FY2025.
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GTO margin expansion offsets ICS dilution
GTO is the principal margin inflection: revenue rose 8% to $1.916B while pre-tax income increased 48% to $297.8M, expanding pre-tax margin 4.2 points to 15.5%. ICS remained the larger earnings engine, delivering $5.561B of revenue and $1.104B of pre-tax income.
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Infrastructure scale and product roadmap
Broadridge positions its moat around mission-critical, scaled financial-market infrastructure: its capital-markets technology processes clearance and settlement across more than 100 markets, while its ICS platform manages proxy distribution, voting and regulatory communications. Product development explicitly includes agentic AI, distributed-ledger repo, tokenized-asset capabilities and cloud-enabled platforms.
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Recurring engine remains broad-based
Recurring revenue grew 8% to $4.878B, with 3 points each from net new business and internal growth, 2 points from acquisitions and 1 point from FX. ICS Regulatory recurring revenue grew 12% as equity revenue positions grew 12%; GTO wealth and investment-management recurring revenue rose 11%.
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Higher FCF funds returns and acquisitions
Cash generation improved: operating cash flow increased to $1.346B from $1.171B and free cash flow increased to $1.233B from $1.056B. Capital allocation included $603.7M of treasury-stock purchases, $443.5M of dividends paid, $282.7M of net acquisition spending, and a dividend increase to $1.09 quarterly ($4.36 annualized) after year-end.
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GAAP EPS lifted by digital-asset gains
GAAP net earnings increased 34% to $1.124B and diluted EPS increased to $9.60 from $7.10; however, the result includes $227.0M of gains on digital assets. Adjusted EPS was $9.60, versus $8.55 in FY2025, because FY2026 adjustments netted to approximately zero.
What to watch
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SEC e-delivery proposal threatens paper volumes
A newly proposed July 16, 2026 SEC Regulation E-Delivery could permit electronic delivery as the default without affirmative consent, reducing paper communications. Management expects no FY2027 impact but a modest recurring-revenue-growth decrease over two to three years and lower distribution revenue; its risk factor states paper volumes would decline and physical distribution could require restructuring.
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New material Canton Coin valuation exposure
Digital assets became a material and volatile balance-sheet and earnings exposure: Canton Coins had a $216.1M fair value at June 30, 2026, including $189.9M of 1.3B coins restricted under the lockup framework. FY2026 other income included $227.0M of digital-asset gains, so changes in adoption, regulation, price, liquidity or custody could produce material reversals.
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AI deployment expands compliance and model risk
The filing newly emphasizes risks from Generative and Agentic AI, including accuracy, bias, IP infringement, confidential-data leakage, privacy and cybersecurity failures. Management is investing in AI offerings and joined Anthropic's Project Glasswing in 2026, but states AI initiatives may not improve products or operating results and could trigger regulatory scrutiny, fines or litigation.
Management's outlook
The 10-K contains no company-wide FY2027 numeric outlook. Management says proposed SEC Regulation E-Delivery is expected to have no financial-results impact in FY2027; over a two-to-three-year period it anticipates a modest reduction in recurring-revenue growth and lower distribution revenue, largely offset by new solutions and with adverse earnings impact mitigated.
Earlier filings 4
10-Q · February 3, 2026
Broadridge reported quarterly revenue of $1,713.9M and diluted EPS of $2.42 for the three months ended December 31, 2025 (fiscal Q2), beating consensus. Net earnings rose to $284.6M from $142.4M a year earlier, driven…
10-Q · November 4, 2025
Broadridge reported quarterly revenue of $1,589.4 million and diluted EPS of $1.40 for the three months ended September 30, 2025, up versus the prior year. Operating income improved to $188.8 million (11.9% operating…
10-Q · May 1, 2025
Broadridge reported quarterly revenue of $1,811.7M and diluted EPS of $2.05 for the three months ended March 31, 2025, both up versus the prior-year quarter. Gross margin expanded to 31.8% and operating margin to 19.0%,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.