Broadridge Financial beats Q2 EPS expectations, hikes FY profit forecast

Overview

• Financial technology firm's Q2 revenue rose 8%, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company raised FY26 Adjusted EPS growth guidance to 9-12%

Outlook

• Broadridge raises FY26 adjusted EPS growth guidance to 9-12%

• Company reaffirms FY26 recurring revenue growth at higher end of 5-7% constant currency

• Broadridge expects FY26 closed sales between $290 mln and $330 mln

Result Drivers

• RECURRING REVENUE GROWTH - Driven by organic growth and acquisitions in ICS and GTO, recurring revenues rose 9%

• EVENT-DRIVEN REVENUE DECLINE - Event-driven revenues decreased 27%, impacting operating income margins

• DIGITAL AND SHAREHOLDER ENGAGEMENT - Company focused on digital communications and shareholder engagement solutions

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the professional information services peer group is "buy"

• Wall Street's median 12-month price target for Broadridge Financial Solutions Inc is $269.00, about 35.6% above its February 2 closing price of $198.34

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nPntZ99Fa

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