Broadridge Financial Solutions (BR)
NYSE:BR
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Broadridge Financial Solutions
(NYSE:BR)
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Rating:72Outperform
Price Target:
$166.00
▲(1.89% Upside)
Action:Upgraded
Date:05/21/26
The score is supported by strong financial performance (expanding margins and solid cash generation) and a constructive earnings outlook with raised guidance and strong free-cash-flow expectations. These positives are tempered by weak technicals (price below key moving averages with negative MACD) and near-term execution risk from slower closed-sales conversion and license revenue headwinds.
Positive Factors
Recurring revenue and margin expansion
Broadridge's steady recurring revenue growth and raised FY26 recurring guidance, combined with materially improved operating margins (TTM net ~15%, EBIT ~20%), indicate durable subscription-like cash flows and operating leverage that support predictable revenue and reinvestment over the medium term.
Negative Factors
Closed sales shortfall and lengthening cycles
Lower closed sales and longer, more complex deal cycles delay new contract revenue recognition and push growth out over quarters. Slower conversion increases forecast volatility, risks postponing margin accretion from large deals, and heightens execution risk for meeting near‑term targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue and margin expansion
Broadridge's steady recurring revenue growth and raised FY26 recurring guidance, combined with materially improved operating margins (TTM net ~15%, EBIT ~20%), indicate durable subscription-like cash flows and operating leverage that support predictable revenue and reinvestment over the medium term.
Read all positive factors
Broadridge Financial Solutions Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business units, highlighting which areas drive growth and profitability, and where strategic focus might be needed.
Analyzes income from different business units, highlighting which areas drive growth and profitability, and where strategic focus might be needed.
Data provided by:
The Fly
The FlyBroadridge Financial Solutions (BR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.41B
Dividend Yield1.63%
Average Volume (3M)1.39M
Price to Earnings (P/E)17.1
Beta (1Y)0.57
Revenue Growth8.19%
EPS Growth40.01%
CountryUS
Employees14,000
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)9.42
Shares Outstanding115,658,295
10 Day Avg. Volume1,722,982
30 Day Avg. Volume1,391,010
Financial Highlights & Ratios
PEG Ratio1.62
Price to Book (P/B)10.72
Price to Sales (P/S)4.13
P/FCF Ratio26.94
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue2.80
Enterprise Value/Gross Profit8.94
Enterprise Value/Ebitda10.38
Forecast
1Y Price Target
$192.83Price Target Upside18.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)9.53
Revenue Forecast (FY)$7.42B
Broadridge Financial Solutions Business Overview & Revenue Model
Company Description
Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry. The company's Investor Communication Solutions segment processes and distributes proxy materials to investor...
How the Company Makes Money
Broadridge makes money primarily by selling recurring, high-volume services and software/technology solutions that are embedded in clients’ core operational and regulatory workflows.
1) Investor Communication Solutions (ICS) revenue
- Processing ...
Broadridge Financial Solutions Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call portrayed a broadly positive operational and financial picture: solid top-line recurring revenue growth (6% Q3, 5% organic), double-digit adjusted EPS expansion (11%), strong free cash flow generation and continued investment in strategic growth areas (tokenization, AI, M&A). Key challenges center on a shortfall and lengthening of closed sales cycles, license revenue headwinds, and modest margin pressure from mix and lower interest income. Management raised FY26 guidance for recurring revenue and EPS and emphasized a strong pipeline (> $1B), which supports confidence in future growth despite near-term sales timing issues.Positive Updates
Recurring Revenue and Organic Growth
Recurring revenues grew 6% year-over-year on a constant currency basis (5% organic growth) in the quarter, and management raised full-year fiscal '26 recurring revenue guidance to at or above 7% CC.
Negative Updates
Closed Sales Shortfall and Lower Sales Guidance
Year-to-date closed sales of $147M were down 16% versus prior year; Q3 closed sales were $58M vs. $71M prior. Management lowered closed sales guidance to $240M–$290M for fiscal '26 and noted deals are taking longer to close (larger, more complex deals).
Read all updates
Q3-2026 Updates
Positive
Negative
Recurring Revenue and Organic Growth
Recurring revenues grew 6% year-over-year on a constant currency basis (5% organic growth) in the quarter, and management raised full-year fiscal '26 recurring revenue guidance to at or above 7% CC.
Read all positive updates
Company Guidance
Broadridge raised its fiscal 2026 outlook, now targeting recurring revenue growth (constant currency) at or above 7% and adjusted EPS growth of 10%–12% (up from 9%–12%), with an expected adjusted operating income margin of approximately 20%–21%; closed sales guidance was lowered to $240M–$290M (YTD closed sales $147M) even as pipeline and deal origination exceed $1B and are up ~20%–25% year-over-year, and management expects free cash flow conversion greater than 100% (forecasting >$1.1B FYE after $591M YTD), a full-year tax rate near 22%, continued capital deployment (four tuck-ins for $294M including CQG for $173M, $77M capex plus $33M onboarding), and ongoing returns to shareholders (YTD dividends and buybacks $681M).Broadridge Financial Solutions Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
74
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.32B | 6.89B | 6.51B | 6.06B | 5.71B | 4.99B |
| Gross Profit | 2.29B | 2.14B | 1.93B | 1.79B | 1.59B | 1.42B |
| EBITDA | 1.98B | 1.69B | 1.51B | 1.36B | 1.22B | 1.01B |
| Net Income | 1.10B | 839.50M | 698.10M | 630.60M | 539.10M | 547.50M |
Balance Sheet | ||||||
| Total Assets | 8.78B | 8.54B | 8.24B | 8.23B | 8.17B | 8.12B |
| Cash, Cash Equivalents and Short-Term Investments | 304.80M | 561.50M | 305.20M | 252.30M | 224.70M | 274.50M |
| Total Debt | 3.41B | 3.46B | 3.58B | 3.65B | 4.07B | 4.19B |
| Total Liabilities | 5.96B | 5.89B | 6.07B | 5.99B | 6.25B | 6.31B |
| Stockholders Equity | 2.82B | 2.66B | 2.17B | 2.24B | 1.92B | 1.81B |
Cash Flow | ||||||
| Free Cash Flow | 1.30B | 1.06B | 943.20M | 748.10M | 370.40M | 539.40M |
| Operating Cash Flow | 1.37B | 1.17B | 1.06B | 823.30M | 443.50M | 640.10M |
| Investing Cash Flow | -265.50M | -316.20M | -148.00M | -80.40M | -110.40M | -2.65B |
| Financing Cash Flow | -1.12B | -600.80M | -855.50M | -714.70M | -370.80M | 1.80B |
Broadridge Financial Solutions Technical Analysis
Negative
162.92
Price Trends
158.69
Negative
177.17
Negative
206.05
Negative
Market Momentum
-3.15
Negative
44.38
Neutral
75.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BR, the sentiment is Negative. The current price of 162.92 is above the 20-day moving average (MA) of 151.39, above the 50-day MA of 158.69, and below the 200-day MA of 206.05, indicating a bearish trend. The MACD of -3.15 indicates Negative momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 75.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BR.
Broadridge Financial Solutions Risk Analysis
Broadridge Financial Solutions disclosed 23 risk factors in its most recent earnings report. Broadridge Financial Solutions reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Broadridge Financial Solutions Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $25.00B | 11.05 | 14.79% | 1.46% | 6.55% | -3.10% | |
73 Outperform | $49.77B | 14.68 | 31.77% | 2.58% | 4.85% | 6.19% | |
72 Outperform | $17.41B | 17.10 | 40.06% | 1.63% | 8.19% | 40.01% | |
68 Neutral | $15.48B | 15.25 | 29.15% | 0.87% | 2.34% | 10.44% | |
66 Neutral | $21.89B | 14.82 | 15.03% | 2.78% | -0.55% | -3.97% | |
65 Neutral | $10.53B | 12.43 | 119.81% | ― | 2.30% | -37.31% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
BR
Broadridge Financial Solutions
150.49
-82.42
-35.39%
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Broadridge Financial Solutions Corporate Events
Dividends
Broadridge Declares Quarterly Cash Dividend, Affirming Capital Returns
Positive
May 21, 2026
On May 21, 2026, Broadridge Financial Solutions announced that its board of directors declared a quarterly cash dividend of $0.975 per share, payable on July 2, 2026 to shareholders of record as of June 12, 2026. The dividend action underscores th...
Business Operations and StrategyPrivate Placements and Financing
Broadridge Financial Issues New 2036 Senior Notes Offering
Positive
May 15, 2026
On May 15, 2026, Broadridge Financial Solutions closed a $500 million underwritten public offering of 5.750% senior notes due 2036, following an underwriting agreement signed on May 4, 2026 with a syndicate led by J.P. Morgan, BofA Securities, Mor...
Business Operations and StrategyPrivate Placements and Financing
Broadridge Financial Prices $500 Million Senior Notes Offering
Positive
May 6, 2026
On May 4, 2026, Broadridge Financial Solutions, Inc. priced a $500 million public offering of 5.750% senior notes due 2036 as part of an underwritten transaction led by major Wall Street banks. The offering, made under an effective SEC shelf regis...
Business Operations and StrategyDividendsFinancial Disclosures
Broadridge Updates 2026 Outlook in Investor Presentation
Positive
May 6, 2026
On May 6, 2026, Broadridge Financial Solutions posted its May 2026 investor presentation, outlining updated performance metrics and guidance for fiscal 2026, including recurring revenue and adjusted EPS growth objectives and a planned dividend lev...
Dividends
Broadridge Declares Quarterly Cash Dividend, Signals Ongoing Stability
Positive
Mar 6, 2026
On March 6, 2026, Broadridge Financial Solutions, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.975 per share, reinforcing its ongoing capital return program to shareholders. The dividend will be paid on April...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.