Broadridge Reports First Quarter Fiscal 2026 Results

Core Insights - Broadridge Financial Solutions reported strong first-quarter results for fiscal year 2026, with recurring revenues growing by 9% to $977 million and total revenues increasing by 12% to $1,589 million compared to the same period last year [1][4] - The company raised its fiscal year 2026 recurring revenue growth outlook to the higher end of the 5-7% guidance range and reaffirmed its guidance for adjusted EPS growth of 8-12% and closed sales of $290-$330 million [2][3] Financial Performance - Recurring revenues increased by $77 million, or 9%, from $900 million in the previous year [1][4] - Total revenues rose by $166 million, or 12%, from $1,423 million in the prior year [1][4] - Operating income grew by 40% to $189 million, with an operating margin of 11.9%, up from 9.4% [1][5] - Adjusted EPS increased by 51% to $1.51, compared to $1.00 in the prior year [1][4] Segment Results - Event-driven revenues surged by 81% to $114 million, driven by a higher volume of mutual fund proxy communications [5] - Distribution revenues increased by 8% to $498 million, influenced by a postage rate increase of approximately $25 million [5] - The Investor Communication Solutions (ICS) segment generated revenues of $1,130 million, while the Global Technology and Operations (GTO) segment contributed $459 million [31] Acquisitions and Investments - Broadridge made two tuck-in acquisitions during the quarter to enhance its governance business, acquiring Signal for approximately $27 million and iJoin for about $35 million [2][7][8] - The company repurchased $150 million of its shares, indicating a commitment to returning value to shareholders [2] Guidance and Outlook - The company expects fiscal year 2026 recurring revenue growth at the higher end of the 5-7% guidance range, with continued margin expansion and strong closed sales [2][3] - The adjusted operating income margin is expected to remain between 20-21% [3]