Broadridge Reports Second Quarter Fiscal 2026 Results

Core Insights - Broadridge Financial Solutions reported strong second quarter results for fiscal year 2026, with recurring revenues growing by 9% and adjusted EPS increasing by 2% to $1.59, leading to an increase in the adjusted EPS growth outlook to 9-12% for the fiscal year [1][2][5] Financial Performance - Recurring revenues reached $1,070 million, up from $980 million, reflecting a 9% increase year-over-year [1][2] - Total revenues increased by 8% to $1,714 million compared to $1,589 million in the same quarter last year [1][2] - Operating income was $206 million, a slight decrease of 2% from $211 million, with an operating income margin of 12.0% [1][2] - Adjusted operating income rose by 1% to $265 million, with an adjusted operating income margin of 15.5% [1][2] Earnings Metrics - Diluted EPS increased by 102% to $2.42, compared to $1.20 in the prior year [1][2] - Adjusted EPS rose by 2% to $1.59 from $1.56 [1][2] - Net earnings doubled to $285 million, while adjusted net earnings increased by 1% to $187 million [1][2] Segment Performance - Investor Communication Solutions (ICS) total revenues increased by 7% to $1,233 million, driven by growth in digital revenues and the acquisition of Signal Agency Limited [1][2] - Global Technology and Operations (GTO) revenues rose by 9% to $480 million, with wealth and investment management growing by 12% [1][2] Guidance and Outlook - The company reaffirmed its fiscal year 2026 guidance for recurring revenue growth at the higher end of 5-7% and closed sales expected between $290 million and $330 million [1][2] - Adjusted operating income margin guidance remains at 20-21% [1][2] Recent Developments - On January 5, 2026, Broadridge completed the acquisition of Acolin Group Holdco Limited for approximately $70 million, enhancing its capabilities in cross-border fund distribution and regulatory services [2][5]