Inquired about specific tailwinds for the 6% internal growth in ICS beyond equity revenue position count growth.

Management stated that ICS growth was driven by a healthy mix of closed sales and strong record growth, despite a 40 basis point headwind from interest rates, with no other specific call-outs. “On the organic side, we benefited from a healthy mix of closed sales, strong record growth. And this was in spite of a 40 basis point headwind from interest rates.”

Asked about the impact of the SEC's e-delivery rule proposal on Broadridge's competitive moat, especially in a primarily electronic communication world.

Management believes the rule strengthens Broadridge's position due to its "InFocus" platform's ability to provide next-generation digital experiences and seamlessly handle both digital and residual print communications. This dual capability and integrated composition engine offer a unique value proposition. “We think this really strengthens things because when you look at the next-generation digital experience to not just sense [ cell ] on a dead PDF... The platform that we've invested in around our in-focus platform... is truly groundbreaking.”

Asked how the unit economics for new tokenized security wins (Ondo, Alpaca, Galaxy) would evolve, specifically if they are incremental to existing proxy economics or a re-rate.

Management clarified that they are using the same rate schedules (registered for natively issued, beneficial for custodial/synthetic) for tokenized securities. They view the complexity introduced by tokenization as beneficial for Broadridge, driving position growth and demand for their infrastructure and regulatory knowledge. “It's really very -- we're using the same rate schedule. So if it's a natively issued, it would be the registered rate schedule, which is higher than the beneficial schedule.”

Broadridge (BR) Q4 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q4 FY26)· Information Technology· Aug 4, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Recurring Revenue Growth (constant currency)	6% to 8% high materiality	FY27 · 2027	High
Adjusted EPS Growth	8% to 12% high materiality	FY27 · 2027	High
Adjusted Operating Income Margin	approximately 21% medium materiality	FY27 · 2027	High
Closed Sales	$290 million to $330 million medium materiality	FY27 · 2027	High
AI-driven Productivity Gains	$25 million medium materiality	FY27 · 2027	High
Event-driven Revenues	$250 million to $300 million low materiality	FY27 · 2027	Medium
Distribution Revenues Growth	mid-single-digit range low materiality	FY27 · 2027	Medium
Expected Tax Rate	22% low materiality	FY27 · 2027	High
Adjusted EPS Contribution to Full Year	11% to 13% low materiality	Q1 · 2027	High
GTO License Tailwind	4-point low materiality	Q1 · 2027	High
Equity Revenue Position Growth	high single-digit medium materiality	H1 FY27 · 2027	Medium
Fund Position Growth	mid-single-digit medium materiality	H1 FY27 · 2027	Medium
DLR Volume Growth	50% medium materiality	December · 2027	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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)	—

Orderbook & backlog

Closed Sales Backlog $470 million FY26 end

up $40 million YoY

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

Product announcements

Product	Type	Timeline
AI-powered custom policy engine	launch	first proxy season for FY26
Pass-through voting solution	expansion	—
Standing Voting Instruction (SVI) solutions	milestone	first full year
Agentic AI partnership model	launch	May
Next-generation digital asset capability	launch	—
DLx (end-to-end multi-asset tokenization and digital asset platform)	launch	by the end of the calendar year
Digital asset capabilities for Canadian wealth market	expansion	by the end of the calendar year
Digital asset capabilities for U.S. wealth clients	expansion	—

Deals & partnerships

CQG Strengthen 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.

Signal Contributed to customer communications growth.

Acquisition contributed to Q4 growth.

Ondo Provide 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.

Alpaca Provide 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.

Galaxy Completed 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.

Aviso Onboarding as a wealth platform client in the Canadian market.

Latest platform client for Canadian wealth.

Leading Canadian bank Significant win for wealth platform in the Canadian market.

Recorded another significant win with a leading Canadian bank.

Risks & headwinds

Lower interest rates and higher postage costs FY26

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 activity Q4 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 proposal 2- 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

DLR Volume Growth

by December (FY27 H1)

Current $360 billion in June

Target 50% 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.

Find out whether BR delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.