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    BR
    Earnings call· Jun 2026(Q4 FY26)

    BROADRIDGE FINANCIAL SOLUTIONS Q4 FY26 earnings call BR

    Aug 4, 2026 Source

    Executive summary

    Broadridge Q4 FY26 — Strong Financial Results and Strategic Investments in AI and Tokenization

    Broadridge delivered strong financial results in Q4 and FY26, driven by robust recurring revenue growth and record closed sales, while simultaneously making significant strategic investments in digitization, agentic AI, and tokenization. The company is actively building the infrastructure for future financial markets, extending its capabilities across governance, capital markets, and wealth management, and expects these initiatives to be significant long-term tailwinds. Management also highlighted a commitment to shareholder returns through increased dividends and substantial share repurchases.

    Highlights

    5

    • Fiscal year 2026 revenue rose 8% in constant currency.

    • Fiscal year 2026 adjusted EPS rose 12% to $9.60.

    • Record fourth quarter closed sales of $158 million, bringing full-year closed sales to $305 million.

    • Board approved a 12% increase in annual dividend, marking 20 consecutive years of increases.

    • Returned over $1 billion to shareholders in fiscal '26 ($600M buybacks, $443M dividends).

    Concerns

    3

    • Lower interest rates and higher postage created a 40 basis point headwind to adjusted operating income margin in FY26.

    • Event-driven revenue of $71 million in Q4 was a modest headwind to total revenue growth, largely due to lower mutual fund proxy activity.

    • SEC e-delivery rule proposal is expected to cause a modest headwind to recurring revenue growth over a 2- to 3-year period beyond FY27.

    Guidance & targets

    13
    CategoryTargetConfidence
    Recurring Revenue Growth (constant currency)
    6% to 8%
    high materiality
    High
    Adjusted EPS Growth
    8% to 12%
    high materiality
    High
    Adjusted Operating Income Margin
    approximately 21%
    medium materiality
    High
    Closed Sales
    $290 million to $330 million
    medium materiality
    High
    AI-driven Productivity Gains
    $25 million
    medium materiality
    High
    Event-driven Revenues
    $250 million to $300 million
    low materiality
    Medium
    Distribution Revenues Growth
    mid-single-digit range
    low materiality
    Medium
    Expected Tax Rate
    22%
    low materiality
    High
    Adjusted EPS Contribution to Full Year
    11% to 13%
    low materiality
    High
    GTO License Tailwind
    4-point
    low materiality
    High
    Equity Revenue Position Growth
    high single-digit
    medium materiality
    Medium
    Fund Position Growth
    mid-single-digit
    medium materiality
    Medium
    DLR Volume Growth
    50%
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    ICS (Investor Communication Solutions)
    Strong growth in regulatory revenues driven by new sales and double-digit equity position growth. Benefited from global volumes and new shareholder engagement products. Lower interest rates were a 2-point headwind to organic growth in data-driven fund solutions. Signal acquisition contributed 2 points to Q4 customer communications growth.
    Regulatory revenues growth FY26: 12%Regulatory revenues growth Q4: 14%Equity position growth FY26: 16%Equity revenue position growth FY26: 12%Fund position growth FY26: 6%Data-driven fund solutions revenue growth FY26: 4%Data-driven fund solutions revenue growth Q4: 7%Issuer revenues growth FY26: 8%Issuer revenues growth Q4: 8%Customer communications revenues growth FY26: 5%Digital customer communications revenues growth FY26: 14%Customer communications revenues growth Q4: 1%Digitalization rates proxy communications: nearing 95%Digitalization rates funds: 80%
    		—8% (FY26 recurring revenue)10% (Q4 recurring revenue)—
    GTO (Global Technology and Operations)
    Capital markets growth driven by new sales and higher equity trading volume; CQG acquisition contributed 3 points to Q4 growth. Wealth and Investment Management growth driven by SIS acquisition, new sales, and strength in retail trading volume.
    Capital markets revenues growth FY26: 5%Capital markets revenues growth Q4: 7%Wealth and Investment Management revenues growth FY26: 10%Wealth and Investment Management revenues growth Q4: 1%Wealth and Investment Management revenues growth Q4 (ex-term licenses): 5%Q4 equity trading volume growth: double-digitQ4 fixed income trading volume growth: mid-single-digitQ4 total trade volumes growth: 15%
    		$1.2 billion (FY26 Capital Markets revenue)7% (FY26 GTO revenue)5% (Q4 GTO revenue)—

    Operational metrics

    28
    Recurring Revenue
    $4.9 billionup 8% constant currency
    FY26

    Delivered high single-digit recurring revenue growth while funding investments.

    Adjusted EPS
    $9.60up 12%
    FY26

    Another year of double-digit adjusted EPS growth.

    Adjusted Operating Income Margin
    20.5%rose slightly
    FY26

    Overcame headwinds from lower interest rates and higher postage.

    Adjusted Operating Income Margin
    26.9%down 10 bps YoY
    Q4 FY26

    Operating leverage from scale business was offset by the timing of growth investments.

    Capital Returned to Shareholders
    $1.043 billionjust under $9 per share
    FY26

    Returned via share repurchases and dividends.

    Share Repurchases
    $600 millionrecord
    FY26

    Record amount repurchased, with a significant portion in Q4.

    Dividend Per Share
    $4.3612% increase
    Annual

    Board approved increase, underscoring commitment to shareholder value.

    Share Repurchase Authorization
    $1.5 billionincreased
    Ongoing

    Positions the company to continue actively repurchasing shares while having capacity for strategic M&A.

    Leverage Ratio
    1.9x
    June 30

    Comfortably below target, providing financial flexibility.

    Capital Spending and Software
    $113 million
    FY26

    Investment in internal infrastructure.

    Client Onboarding Spend
    $46 million
    FY26

    Investment to onboard clients onto platforms.

    Digital Assets Holdings
    $265 million
    June 30

    Holdings include coins and digital asset treasury-related investments.

    Gain on Digital Assets Holdings
    $227 million
    FY26

    Recognized gain, adjusted out of non-GAAP earnings.

    Closed Sales
    $305 million
    FY26

    Record fourth quarter closed sales contributed to the full-year total.

    Retention Rate
    98%
    Q4 and FY26

    Consistent high retention rates for the quarter and full year.

    AI-driven Productivity Gains
    $25 million
    FY27

    Expected primarily in the technology organization, to be used to fund investments and deliver earnings growth.

    Platform and Innovation Sales Share
    nearly 40%up 60%
    FY26

    Growing share of sales driven by platform-enabled AI and next-generation products, including shareholder engagement, DLR, and digital communications.

    Pipeline at Year-End
    up significantlyup by more than 1/3 YoY
    FY26 end

    Highlights growing demand for next-generation solutions, providing momentum into fiscal '27.

    Equity Record Growth
    16%
    FY26

    Powered by the continued popularity of managed accounts.

    Equity Revenue Position Growth
    12%
    FY26

    Driven by market innovation bringing in new investors and portfolio diversification.

    Fund Position Growth
    6%
    FY26

    Funds benefiting from increased innovation in both passive and active strategies.

    Proxy Policy Engine AUM
    $800 billion
    FY26

    AI-powered custom policy engine empowering proxy votes for U.S. AUM.

    Pass-Through Voting Funds
    900up from 600 last year
    FY26

    Using voting choice capability to extend governance decisions to underlying shareholders.

    Pass-Through Voting AUM
    $8 trillionup from $4 trillion last year
    FY26

    Reflects increased adoption of pass-through voting solutions.

    Standing Voting Instruction Clients
    6
    FY26

    Platform has a year of proven success improving retail voting participation.

    DLR Volume
    $360 billionup 3x from May '25
    June

    Daily volume of tokenized repo transactions on the distributed ledger repo platform.

    DLR Institutions
    nearly 20
    FY26

    Institutions on the platform or in the process of onboarding.

    AI Partnership Model Cost Reduction
    up to 30%
    Day 1

    Operational cost reduction with additional savings over time from the agentic AI partnership model.

    Industry KPIs

    3
    MetricValueDetails
    Retention rate98%%
    Client funds balances yield—
    New business bookings growth$305 millionUSD

    Orderbook & backlog

    1
    Closed Sales Backlog$470 millionFY26 end

    up $40 million YoY

    Provides strong visibility into the largest drivers of expected growth in fiscal '27 and '28.

    Product announcements

    8
    ProductTypeDetails
    AI-powered custom policy enginelaunch
    Pass-through voting solutionexpansion
    Standing Voting Instruction (SVI) solutionsmilestone
    Agentic AI partnership modellaunch
    Next-generation digital asset capabilitylaunch
    DLx (end-to-end multi-asset tokenization and digital asset platform)launch
    Digital asset capabilities for Canadian wealth marketexpansion
    Digital asset capabilities for U.S. wealth clientsexpansion

    Deals & partnerships

    8
    CQGStrengthen futures and options capabilities.

    Acquisition closed in early May.

    Acolin and [I join]Contributed to data-driven fund solutions growth.

    Acquisitions contributed to Q4 growth. [I join] is a transcription note for a potentially garbled name.

    SignalContributed to customer communications growth.

    Acquisition contributed to Q4 growth.

    OndoProvide market-leading solution for synthetic tokenized U.S. equities and ETFs to enable governance exercise. Extended relationship to provide governance solutions for custodial model in U.S.

    Relationship announced for synthetic tokenized U.S. equities and ETFs. Extended for custodial model they intend to launch in the U.S.

    AlpacaProvide full suite of governance and shareholder communication services to clients on their network for tokenized assets.

    Agreement signed with a leading provider of custody, clearing, and infrastructure services supporting tokenized assets.

    GalaxyCompleted the first and only on-chain voting for tokenized equities. Integrating capability into shearling voting solution.

    First and only on-chain voting for tokenized equities completed. Integrating into their [ shearling ] voting solution.

    AvisoOnboarding as a wealth platform client in the Canadian market.

    Latest platform client for Canadian wealth.

    Leading Canadian bankSignificant win for wealth platform in the Canadian market.

    Recorded another significant win with a leading Canadian bank.

    Risks & headwinds

    3
    Lower interest rates and higher postage costsFY26

    40 basis point headwind to adjusted operating income margin

    Mitigation: Offset by strong recurring revenue, record event revenue, and operating leverage; AI productivity gains expected in FY27.

    Lower mutual fund proxy activityQ4 FY26

    $71 million event-driven revenue, modest headwind to Q4 total revenue growth

    Mitigation: Not explicitly stated, but overall strong performance and diversification.

    SEC's e-delivery rule proposal2- to 3-year period beyond FY27

    Modest headwind to recurring revenue growth

    Mitigation: Expect to largely offset with new solutions; not anticipating significant impact on adjusted earnings growth; Broadridge is well-positioned to help clients through the change.

    What to watch in Q1 FY27

    5

    DLR Volume Growth

    by December (FY27 H1)
    Current$360 billion in June
    Target50% growth

    Why it matters

    DLR is a key tokenization initiative, and its growth indicates adoption of Broadridge's distributed ledger technology.

    DLR volume rose to $360 billion in June, up 3x from May of '25. We're currently onboarding multiple Tier 1 banks to our platform, and we expect 50% growth by December with further scaling as the fiscal year progresses.

    Q&A highlights

    6

    Asked for deeper insight into the strong Q4 closed sales, why larger deals closed this quarter after being difficult, and the significance of the pipeline for next year.

    Management attributed strong Q4 sales to larger deals closing after earlier market uncertainty, alongside a faster flow-through of mid-sized deals. The pipeline is up significantly (over 1/3) from a year ago, giving confidence in another year of $300M+ sales, especially for platform-enabled and innovative products.

    “If you look at our pipeline right now compared to what it was a year ago, it's up by more than 1/3.”

    asked by Daniel Perlin · answered by Timothy Gokey

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Investments in Future Markets

    Broadridge is actively building infrastructure for digitized, agentic, and tokenized financial markets. This includes driving digital communications, scaling agentic AI, and accelerating tokenized assets across governance, capital markets, and wealth management, positioning the company for significant long-term tailwinds. These investments are central to the company's strategy for future growth and market leadership.

    02

    Tokenization Initiatives and Partnerships

    The company is shaping the evolution of tokenized markets by building trusted, scalable infrastructure. This involves extending proxy voting and disclosure capabilities to support synthetic, custodial, and native tokenized equity models through partnerships with Ondo, Alpaca, and Galaxy. Broadridge is also expanding its Distributed Ledger Repo (DLR) platform into DLx for multi-asset tokenization across equities, funds, alternatives, and money market instruments, aiming to provide a unified platform for traditional and digital assets.

    03

    Digitalization and Regulatory Changes

    Broadridge is nearing 95% digitalization rates in proxy communications and 80% for funds, with digital revenues in customer communications growing over 10% for the fourth consecutive year. The SEC's e-delivery rule proposal is viewed as an exciting step forward, expected to be an important catalyst for demand for digital-first communications. Broadridge is well-positioned to assist clients through this transition with its Wealth InFocus platform, which offers seamless dual capability for digital and print communications.

    04

    AI-Driven Productivity and Innovation

    AI initiatives are delivering new products, including the custom policy voting engine, global demand model, and BondGPT, which are gaining traction. AI is also accelerating product development and client onboarding, leading to expected $25 million in AI-driven productivity gains in fiscal '27. These savings, primarily in technology, will be reinvested to fund ongoing investments and drive earnings growth, positioning Broadridge as an 'agentic operating system' for clients.

    05

    Strong Sales Momentum and Backlog

    After a slow start to the year, Q4 closed sales reached a record $158 million, bringing the full-year total to $305 million. The closed sales backlog increased to $470 million, up $40 million from a year ago, providing strong visibility into future recurring revenue growth for FY27 and FY28. A growing share of sales, nearly 40%, is driven by platform and innovation-enabled products, reflecting increasing demand for next-generation solutions.

    06

    Balanced Capital Allocation Strategy

    Broadridge maintains a balanced capital allocation strategy, prioritizing an investment-grade credit rating, internal investments for organic growth, and a growing dividend (12% increase approved, marking 20 consecutive years of increases). The company repurchased a record $600 million in shares in FY26 and increased its repurchase authorization to $1.5 billion, reflecting confidence in the stock's value while maintaining capacity for attractive tuck-in M&A opportunities with a leverage ratio of 1.9x.

    AI-generated summary of the company’s earnings call. Not investment advice.