Broadridge Reaffirms Fiscal 2027 Outlook After Recurring Growth

The Tip Desk · November 3, 2026 · 3 min read

Recurring revenues reached $1,083 million in the fiscal first quarter, up 11% on a reported and constant-currency basis.

Broadridge Financial Solutions (BR) reported first-quarter fiscal 2027 recurring revenues of $1,083 million, up 11% on both a reported and constant-currency basis, faster than the 8% constant-currency growth recorded in the fiscal fourth quarter.

The global financial-technology company said organic growth contributed 9 points of that 11% increase. Total revenues rose 5% to $1,669 million from $1,589 million a year earlier.

Event-driven revenues fell 41% to $67 million, which the company said reflected lower mutual fund proxy revenues that were partially offset by higher equity and other revenue. Distribution revenues increased 4% to $518 million, driven primarily by a postage rate increase of approximately $18 million.

Operating income was $174 million, down 8%, and the operating margin compressed to 10.4% from 11.9%. Adjusted operating income was $230 million, down 9%, with the adjusted operating margin at 13.8% compared with 15.8%. Diluted earnings per share decreased 41% to $0.83 from $1.40. Adjusted earnings per share increased 3% to $1.56 from $1.51.

The GAAP decline in diluted earnings per share tracked a swing in Corporate and Other. That unit posted a loss before income taxes of $93 million, a decrease of $112 million, which the company attributed to $40 million of non-cash losses on digital assets versus a $46 million gain a year earlier, plus $15 million of restructuring and other related costs. The effective tax rate was 13.6%, compared with 22.4% in the prior-year period, which the company said was primarily driven by an increase in total discrete tax benefits relative to pre-tax income.

Investor Communication Solutions, the larger reportable segment, generated total revenues of $1,153 million, up 2%. ICS recurring revenues increased 10% to $568 million, with constant-currency growth of 10% driven by 8 points of organic growth. Regulatory recurring revenue rose 17%, with equity position growth of 11% and mutual fund/ETF position growth of 16%. Data-driven fund solutions increased 10%, which the company said was driven by the acquisitions of Acolin and iJoin and in data and analytics revenues. Issuer rose 4% and customer communications rose 3%, including the acquisition of Signal Agency Limited.

ICS earnings before income taxes decreased 18% to $104 million. The company said the earnings benefit from higher recurring revenue was offset by lower event-driven revenues and higher operating expenses, which rose 5% to $1,049 million on higher distribution and technology expenses as well as the impact of acquisitions.

Global Technology and Operations recurring revenues were $516 million, up 12%, with constant-currency growth of 13% driven by 10 points of organic growth and 3 points from the acquisition of CQG, Inc. Capital Markets recurring revenue rose 17%, including 12 points of organic growth, of which 4 points came from higher software term license revenues, and 5 points from CQG. Wealth and Investment Management rose 5% reported and 6% constant currency, all organic.

GTO earnings before income taxes were $99 million, up 47%, as higher revenues more than offset higher expenses. Operating expenses in the segment rose 6% to $417 million.

Closed sales grew 10% to $36 million. Broadridge said it repurchased $200 million of shares in the quarter and returned an additional $111 million through its dividend.

The company reaffirmed fiscal 2027 guidance of 6-8% recurring revenue growth constant currency, 8-12% adjusted earnings per share growth, an adjusted operating income margin of about 21%, free cash flow conversion of 100% or more, and closed sales of $290 million to $330 million, unchanged from the outlook issued with fiscal 2026 year-end results. Chief Executive Officer Tim Gokey said the company is reaffirming that guidance after what he described as a strong start to the year.

Broadridge said it will host an Investor Day on December 8, 2026 in New York City, where its executive leadership team will provide an update on strategy and new three-year financial objectives.