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Broadridge Financial Showcases Strong Second Quarter Results for Fiscal 2026

On February 3, 2026, Broadridge Financial Solutions, Inc. (NYSE: BR) unveiled its financial results for the second quarter ending December 31, 2025, revealing substantial growth and reaffirming its strategic initiatives for the upcoming fiscal year. The company reported a remarkable 9% increase in recurring revenues, rising to $1,070 million, compared to $980 million in fiscal 2025. This growth signifies not just a year-on-year increase but also 8% growth on a constant currency basis, underscoring Broadridge's robust position in the financial services sector.

CEO Tim Gokey expressed enthusiasm over the results, stating, "The strong second-quarter performance validates our ability to innovate at scale, deliver organic growth, and enhance investor engagement levels. We are witnessing a surge in demand for digital solutions and efforts around shareholder engagement and tokenization that are critical for modern investing dynamics."

Financial Overview and Key Metrics

Highlights from Q2 Fiscal 2026:

• - Earnings Per Share (EPS):

- Diluted EPS soared by 102%, reaching $2.42 compared to $1.20 in the previous year. Adjusted EPS also witnessed a 2% rise to $1.59.

• - Revenue Growth:

- Total revenues surged by 8% to $1,714 million, which reflects strong operational performance and strategic pricing adjustments post a postage rate increase, among other factors.

• - Operating Income:

- The operating income recorded was $206 million, showing a minor decrease of about 2%, impacted primarily by declining event-driven revenues, yet the margins remained stable at 12%.

Segment Performance Insights

The performance across Broadridge’s major segments reveals strong resilience despite fluctuations in event-driven revenues:

• - Investor Communication Solutions (ICS):

- Reported total revenues of $1,233 million, an increase of 7% year-on-year, primarily from recurring revenues, which rose by 9% to $590 million. Notably, regulatory services, a key line of business, saw an 18% rise, demonstrating regulatory reliance in securities markets.

• - Global Technology and Operations (GTO):

- Recorded $481 million in revenues, driven by organic growth and the integration of acquired capabilities. This segment's recurring revenue also demonstrated strong performance, particularly in wealth management services.

Strategic Outlook for Fiscal 2026

Broadridge has raised its fiscal year 2026 outlook for adjusted EPS growth to 9-12%, signaling confidence in sustained operational momentum. The outlook includes parallels for recurring revenue growth to remain stable at the higher end of the 5-7% range, with expectations of continued margin expansion and strategic closed sales program aiming between $290-330 million for the fiscal year.

Gokey elaborated on the strategic direction, adding, "Our initiatives to democratize investing, enhance trading practices, and modernize wealth management are not merely projections but tangible actions we are advancing. Acquisitions, such as the recent purchase of Acolin Group, fortify our position in the European market, helping us achieve cross-border compliance and enhancing our service offerings."

Moving Forward

As Broadridge embarks on a transformative path empowered by technology, the company is poised for continued innovation and expansion in financial services. Investors and stakeholders look forward to the upcoming analyst conference call, where further insights will be provided regarding strategic plans, operational impacts, and market conditions as the company navigates fiscal 2026.

In this dynamic environment, Broadridge emphasizes its commitment to driving efficiency, resilience, and value creation for its clients while satisfying evolving market demands. With a solid financial foundation, Broadridge stands out as a vanguard in the fintech landscape.

For further details, visit Broadridge's Investor Relations website.