BROADRIDGE FINANCIAL SOLUTIONS, INC. recently released its 10-K report. Broadridge provides investor communications and technology-based services to financial firms in the U.S. and abroad. Its business is split between Investor Communication Solutions, which handles proxy distribution, voting, regulatory communications, and related processing services, and Global Technology and Operations, which automates trade processing, clearing, settlement, compliance, and other back-office functions for capital markets and wealth management clients.
Item 7 of the 2025 Annual Report shows revenue rising to $7.48 billion in fiscal 2026 from $6.89 billion in fiscal 2025, an increase of $587.6 million, or 9%. Recurring revenue increased 8% to $4.88 billion, event-driven revenue increased 9% to $348.1 million, and distribution revenue increased 9% to $2.25 billion. Management said recurring revenue growth was driven by organic growth and acquisitions in both segments, while distribution revenue benefited from approximately $123 million of postage rate increases and higher volumes.
Operating expenses increased $475.7 million, or 8%, to $6.18 billion. Cost of revenues rose $348.4 million, including about $176.7 million of higher postage and distribution costs in Investor Communication Solutions, along with higher labor, technology, and acquisition-related expenses. Selling, general and administrative expenses increased $127.2 million, mainly from higher labor and compensation costs and higher investment spending.
Operating income increased 9% to $1.30 billion, and the operating margin was 17.4%, up slightly from 17.3%. Interest expense, net, fell to $99.9 million from $122.7 million, helped by lower average borrowings and lower borrowing costs. Other non-operating income swung to a gain of $245.2 million from an expense of $7.1 million, largely because of non-cash gains on digital assets of $227.0 million.
Earnings before income taxes rose 37% to $1.45 billion. The effective tax rate increased to 22.2% from 20.7%, mainly because pre-tax income was higher and discrete tax benefits were lower, including a smaller excess tax benefit tied to stock-based compensation. Net earnings increased 34% to $1.12 billion, and diluted earnings per share rose to $9.60 from $7.10.
Investor Communication Solutions generated $5.56 billion of revenue, up 9% from $5.11 billion, and pre-tax earnings of $1.10 billion, up 5% from $1.05 billion. Within that segment, recurring revenue increased 8% to $2.96 billion, event-driven revenue increased 9% to $348.1 million, and distribution revenue increased 9% to $2.25 billion. Management said recurring growth in the segment was driven by 7 points of organic growth, with regulatory revenue up 12%, data-driven fund solutions up 4%, and capital markets revenue up 4%.
Global Technology and Operations posted revenue of $1.92 billion, up 8% from $1.78 billion, and pre-tax earnings of $297.8 million, up 48% from $201.4 million. The company said recurring revenue growth in the segment was supported by net new business, internal growth, acquisitions, and foreign exchange. Amortization of acquired intangibles and purchased intellectual property in the segment increased to $160.9 million from $153.7 million.
Broadridge reported closed sales of $305.1 million for fiscal 2026, up from $287.9 million in fiscal 2025. The company said closed sales are net of a 5.0% allowance adjustment, equal to $16.1 million in fiscal 2026 and $15.2 million in fiscal 2025. It also said larger closed sales can take 12 to 24 months or longer to convert into revenue, especially in Global Technology and Operations.
Management highlighted the SEC’s July 16, 2026 proposal on Regulation E-Delivery, saying the rule could reduce paper delivery and lower distribution revenues over time if adopted as proposed. Broadridge said it expects no impact on fiscal 2027 financial results from the proposal, but anticipates a modest decline in recurring revenue growth over two to three years, partly offset by new solutions. Following these announcements, the company's shares moved 10.86%, and are now trading at a price of $174.43. If you want to know more, read the company's complete 10-K report here.
