Strategic Execution and Market Evolution
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Broadridge delivered 8% constant currency revenue growth in fiscal 2026, driven by double-digit equity position growth and record fourth-quarter closed sales of $158 million.
Management is pivoting the company toward an ‘agentic’ and tokenized future, positioning Broadridge as the essential infrastructure provider for digital and on-chain financial markets.
The Governance segment benefited from the democratization of investing, with total equity record growth of 16% powered by the rising popularity of managed accounts.
Strategic investments in AI are transitioning from concept to reality, evidenced by the successful launch of an AI-powered custom policy engine managing over $800 billion in AUM.
The Capital Markets franchise is scaling its Distributed Ledger Repo (DLR) platform, which now processes $360 billion in daily tokenized transactions, up 3x from the prior year.
Management attributes the late-year sales acceleration to the clearing of client uncertainty, allowing larger, complex deals to move through the pipeline after a slower start to the year.
Fiscal 2027 Outlook and Strategic Assumptions
Fiscal 2027 guidance projects 6% to 8% recurring revenue growth and 8% to 12% adjusted EPS growth, supported by a record $470 million revenue backlog.
Management expects to realize $25 million in AI-driven productivity gains in fiscal 2027, primarily within the technology organization, to fund further innovation and earnings growth.
The SEC’s proposed e-delivery rule is viewed as a long-term catalyst for digital-first communications, though management expects no financial impact in fiscal 2027 due to implementation timelines.
Tokenization is identified as a significant multi-year tailwind, with plans to launch the DLX multi-asset platform by the end of the calendar year to support ‘always-on’ markets.
Guidance assumes a moderation of event-driven revenues to a range of $250 million to $300 million following a record performance in fiscal 2026.
Capital Allocation and Structural Dynamics
The Board approved a 12% dividend increase, marking 20 consecutive years of annual increases since the company’s inception as a public entity.
Broadridge returned over $1 billion to shareholders in fiscal 2026, including a record $600 million in share buybacks, citing compelling valuation at current price levels.
The company holds $265 million in digital assets as of June 30, having recognized a $227 million gain on these holdings during the fiscal year.
A new $1.5 billion share repurchase authorization was established, providing capacity for aggressive buybacks while maintaining flexibility for strategic M&A.
