Broadridge Financial Solutions (BR) Q3 2026 earnings summary

Executive summary

• Delivered strong Q3 results with recurring revenues up 7% (6% constant currency), total revenues up 8% to $1.95B, and adjusted EPS up 11% to $2.72; diluted EPS rose 15% to $2.36.

• Growth was driven by organic expansion, strategic acquisitions, and higher event-driven and distribution revenues, with significant gains from digital asset activities.

• Executed on strategic initiatives in governance, capital markets, and wealth management, with innovation in tokenization, digitization, and AI.

• Raised FY26 guidance for recurring revenue growth (constant currency) to at or above 7% and adjusted EPS growth to 10–12%.

Financial highlights

• Q3 recurring revenues rose to $1.29B (+7%); total revenues reached $1.95B (+8%); adjusted EPS was $2.72 (+11%).

• Operating income for Q3 was $359M (+4%); adjusted operating income was $421M (+4%), with a margin of 21.5% (down 90 bps YoY).

• Free cash flow for the first nine months was $591M, up from $393M YoY.

• Net earnings for Q3 were $276M (+14%); adjusted net earnings were $318M (+10%).

• Interest expense declined 19% to $25.1M for the quarter due to lower borrowings and costs.

Outlook and guidance

• FY26 recurring revenue growth guidance (constant currency) raised to at or above 7%; adjusted EPS growth guidance increased to 10–12%.

• Adjusted operating income margin expected at 20–21% for the full year.

• Closed sales guidance revised to $240–$290M, reflecting longer sales cycles for larger, complex deals.

• Management expects continued revenue growth driven by organic expansion, acquisitions, and digital asset initiatives.

• Cash flows and liquidity are expected to remain strong, supporting operations, investments, dividends, and share repurchases.