Broadridge Financial Solutions, Inc.

What they do

Broadridge serves banks, broker-dealers, asset and wealth managers, public companies, investors, and mutual funds with technology-driven solutions for investing, corporate governance, and communications. Its Investor Communication Solutions segment handles the proxy materials distribution and voting process for bank, broker-dealer, corporate issuer, and fund clients, including electronic and hard copy delivery, proxy voting by telephone, online, mobile or paper, and outsourced proxy campaigns. That segment also includes Data-Driven Fund Solutions, Corporate Issuer Solutions, and Customer Communications Solutions. Global Technology and Operations provides trading, investing, and wealth platforms.

Revenue drivers

• Investor Communication Solutions — The larger segment, representing approximately 74% of total fiscal 2026 and fiscal 2025 revenues; includes Regulatory Solutions (proxy distribution and voting), Data-Driven Fund Solutions, Corporate Issuer Solutions, and Customer Communications Solutions.
• Regulatory Solutions / beneficial proxy services — Broadridge contracts with Nominees to distribute proxy materials and tabulate voting instructions; most public company shares are held in street name through Cede & Co., making Broadridge a central intermediary in the beneficial proxy process.
• Recurring revenues — Fiscal 2026 recurring revenues were $4,878 million, up 8% on a reported and constant currency basis, driven by organic growth in ICS and GTO plus acquisitions in both segments.
• Event-driven and distribution revenues — Fourth quarter fiscal 2026 event-driven revenues fell 10% to $71 million on lower mutual fund proxy revenues, while distribution revenues rose 8% to $606 million, largely from roughly $32 million of postage rate increases.

Recent performance

Fourth quarter fiscal 2026 total revenues rose 7% to $2,220 million and diluted EPS rose 9% to $3.44. Full-year fiscal 2026 total revenues were $7,477 million, up 9%, with diluted EPS of $9.60 versus $7.10. Fourth quarter operating income was $546 million, a 10% increase, with margin of 24.6%, and adjusted operating income margin was 26.9%. Closed sales for the quarter rose 39% to $158 million, and full-year closed sales were $305 million, up 6%. Net earnings for the quarter increased 6% to $398 million.

Strategy

Management said Broadridge is positioning for a digital, agentic, and tokenized future, including enabling governance solutions for tokenized assets, reinventing shareholder engagement, and digitizing communications. It is transforming collateral management and integrating tokenized assets into its Wealth and Capital Markets platforms, and leaning into Agentic AI to drive growth and productivity. Fiscal 2026 recurring revenue and adjusted EPS objectives were achieved for the fifth consecutive three-year cycle. The Board approved a 12% dividend increase to $4.36 per share, described as the fourteenth double-digit increase in the past fifteen years.

Risks

• Regulatory change — The SEC's proposed Regulation E-Delivery would permit clients to default certain federally required communications to electronic delivery, which would reduce the volume of physically delivered communications Broadridge processes.
• Client concentration — Broadridge relies on a relatively small number of clients and depends on their continued financial health and continued use of its services on favorable pricing terms.
• Securities market activity — Declines in participation and activity in the securities markets could reduce demand across Broadridge's services.
• Cybersecurity and systems failure — A material security breach or cyberattack affecting client information, or a disaster, slowdown, or error in Broadridge's systems, could materially disrupt the proxy and communications services it performs centrally for clients.

Outlook

For fiscal 2027, management guides to recurring revenue growth of 6-8% constant currency and adjusted EPS growth of 8-12%. It also expects adjusted operating income margin of 21%, free cash flow conversion above 100%, and closed sales of $290-330 million. The announced annual dividend increase to $4.36 per share takes effect with that outlook.