Broadridge Reports Strong Q2 Recurring Revenue, Raises FY26 Adjusted EPS Guidance
BR is trading near its 52-week low of $193.06 (3.3% above the low) on elevated volume (2.0× avg).
Summary
Broadridge reported strong Q2 recurring revenue growth and raised its full-year fiscal 2026 Adjusted EPS guidance, while GAAP EPS saw a significant boost from digital asset gains.
Key Events · Earnings and Guidance · BR
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Q2 FY26 Financial Performance
Broadridge reported Q2 FY26 recurring revenues of $1.07 billion, up 9% (8% constant currency), and total revenues of $1.71 billion, up 8%. Adjusted EPS increased 2% to $1.59.
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Raised FY26 Adjusted EPS Guidance
The company raised its full-year fiscal 2026 Adjusted EPS growth guidance to 9-12% from the previous 8-12%. It also reaffirmed recurring revenue growth constant currency at the higher end of 5-7%.
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Digital Asset Gains Boost GAAP EPS
Diluted GAAP EPS surged 102% to $2.42, significantly boosted by an unrealized gain of $137 million on digital assets and a realized gain of $53 million from the contribution of Canton Coins.
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Strategic Acquisition
Broadridge completed the acquisition of Acolin Group Holdco Limited for approximately $70 million on January 5, 2026, expanding its European cross-border fund distribution and regulatory services.
Analysis · BR · Trade & Services
Broadridge Financial Solutions reported solid second-quarter fiscal 2026 results, highlighted by robust recurring revenue growth and an upward revision to its full-year Adjusted EPS guidance. The company's recurring revenues increased 9% (8% constant currency), demonstrating consistent operational strength. While Adjusted EPS for the quarter saw a modest 2% increase, diluted GAAP EPS surged 102%, significantly benefiting from substantial unrealized and realized gains on digital assets. The raised full-year Adjusted EPS guidance signals management's confidence in future performance, which is particularly notable as the stock trades near its 52-week lows. Additionally, the recent acquisition of Acolin Group expands Broadridge's European market presence.
At the time of this filing, BR was trading at $199.50 on NYSE in the Trade & Services sector, with a market capitalization of approximately $23.2B. The 52-week trading range was $193.06 to $271.91. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.