Broadridge Financial Solutions, Inc.

Broadridge reported fiscal 2026 recurring revenue growth of 8% on a constant-currency basis to $4.9 billion, with organic growth of 6%. Adjusted EPS increased 12% to $9.60, adjusted operating margin rose slightly to 20.5%, and closed sales were $305 million for the year. In Q4, recurring revenue grew 8% to $1.5 billion, adjusted EPS rose 8% to $3.82, total revenue increased 7% to $2.2 billion, and adjusted operating margin was 26.9%. Forward guidance for fiscal 2027 calls for recurring revenue growth of 6% to 8%, adjusted EPS growth of 8% to 12%, adjusted operating margin of approximately 21%, and closed sales of $290 million to $330 million. Management also said event-driven revenue is expected to moderate to $250 million to $300 million, and first-quarter adjusted EPS should represent about 11% to 13% of full-year earnings.

Tim Gokey framed the year as both a delivery story and a platform-building story, emphasizing Broadridge's push into digitization, agentic AI, and tokenized market infrastructure. His tone was confident and expansive, repeatedly saying the company is building for the markets of tomorrow while executing well today. He highlighted tokenization as a significant tailwind, said the company is the first provider to support all three tokenized equity models, and argued Broadridge is uniquely positioned to solve the resulting governance and servicing complexity.

Ashima Ghei stressed that the business model is working, citing 8% recurring revenue growth, 12% adjusted EPS growth, $1.2 billion of free cash flow, and 110% free cash flow conversion. She noted the full-year adjusted operating margin of 20.5% was held back by a 40 basis point headwind from lower interest rates and higher postage, while Q4 margin was 26.9%, down 10 basis points year over year. On capital allocation, she said Broadridge repurchased a record $600 million of stock, paid $443 million in dividends, invested $113 million in capital spending and software plus $46 million to onboard clients, made $283 million of acquisitions, and held leverage at 1.9x versus a 2.5x target. She also said the board raised the annual dividend 12% to $4.36 per share and increased buyback authorization to $1.5 billion.

Analysts focused on the record closed sales, the durability of ICS growth, the SEC's e-delivery proposal, tokenization economics, buybacks versus M&A, DLR growth, and AI savings. Management said the sales beat reflected both large delayed deals and faster flow-through of midsized deals, with pipeline up more than one-third year over year and half of it now platform-enabled. On e-delivery, they said the SEC proposal should not affect fiscal 2027, would likely be a margin tailwind longer term, and would not materially change competitive dynamics because Broadridge already offers a dual digital/print workflow. On tokenization, management said it is using the same rate schedules for synthetic, custodial, and native models, and that DLR growth, intraday expansion, global rollout, and the new DLX platform provide multiple growth vectors. They also said AI productivity gains of $25 million in fiscal 2027 are being reinvested into the roadmap, not simply passed through immediately to clients.