Broadridge Reaffirms Fiscal 2027 Guidance as Recurring Revenue Rises 10.8%
Broadridge Financial Solutions kept its fiscal 2027 outlook intact after recurring revenue grew 10.8% in the first quarter, though a swing to losses on its digital asset holdings cut GAAP earnings per share by 40.7% to $0.83.
Adjusted EPS rose 3.3% to $1.56 from $1.51 for the quarter ended Sept. 30, according to the earnings release Broadridge filed with an 8-K on Tuesday. Total revenue increased 5.0% to $1.67 billion from $1.59 billion.
Recurring revenue, the fee-based business investors watch most closely, climbed to $1.08 billion from $977 million. Closed sales rose 9.1% to $36 million.
"Broadridge is driving digital engagement, scaling agentic AI, and accelerating tokenization while delivering strong financial results," CEO Tim Gokey said in the release.
What weighed on profit
Net earnings fell 42.7% to $94.8 million from $165.4 million. The corporate line swung to a $93 million pretax loss, which the company attributed to $40 million of non-cash losses on digital assets, compared with a $46 million gain a year earlier, plus $15 million of restructuring and related costs.
Operating income declined 8.1% to $173.5 million, and the operating margin narrowed to 10.4% from 11.9%. Adjusted operating income fell 8.4% to $230 million. Adjusted net earnings were flat at $178 million.
Event-driven revenue dropped 40.7% to $67 million on lower mutual fund proxy revenue, while distribution revenue rose 4.0% to $518 million, helped by postage rate increases.
Segments
In Investor Communication Solutions, recurring revenue grew 9.7% to $568 million, led by growth in its Regulatory product line, the company said. Segment pretax earnings fell 17.5% to $104 million as lower event-driven revenue and higher expenses offset recurring growth.
Global Technology and Operations recurring revenue rose 12.2% to $516 million, helped by the acquisition of CQG. Segment pretax earnings jumped 45.6% to $99 million.
Guidance and capital return
Broadridge reaffirmed every fiscal 2027 target: recurring revenue growth of 6.0% to 8.0% in constant currency, adjusted EPS growth of 8.0% to 12.0%, free cash flow conversion of 100% or more and closed sales of $290 million to $330 million.
The company repurchased $200 million of its shares in the quarter and returned another $111 million through dividends. It also said it will hold an Investor Day on Dec. 8 in New York, where management plans to provide new three-year financial objectives.
By the numbers
- Total revenue: $1.67 billion, up 5.0%
- Recurring revenue: $1.08 billion, up 10.8%
- Diluted EPS: $0.83, down 40.7%
- Adjusted EPS: $1.56, up 3.3%
- Closed sales: $36 million, up 9.1%
- Share repurchases: $200 million
Sources
- Broadridge Financial Solutions Form 8-K with first-quarter fiscal 2027 earnings release, filed Nov. 3, 2026 (accession 0001383312-26-000030)
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