Broadridge Financial Solutions (BR) Q2 2026 earnings summary

Executive summary

• Q2 recurring revenues grew 9% year-over-year (8% constant currency), with Adjusted EPS of $1.59 and diluted EPS doubling to $2.42, driven by strong organic growth, acquisitions, and digital asset gains.

• Net earnings surged 100% to $285M in Q2, with total revenues up 8% to $1.71B; significant digital asset gains included a $137M unrealized and $53M realized gain from Canton Coins.

• Strategic execution focused on innovation in tokenization, AI-driven engagement, and digital communications, with acquisitions of Acolin, iJoin, and Signal expanding capabilities.

• Balanced capital allocation supported M&A, shareholder returns, and robust free cash flow, with $318.5M generated in six months.

• Fiscal 2026 Adjusted EPS growth guidance raised to 9%-12%, with recurring revenue and margin guidance reaffirmed.

Financial highlights

• Q2 recurring revenues rose 9% to $1,070M; total revenues up 8% to $1,714M; Adjusted Operating income was $265M (margin 15.5%), and operating income was $206M (margin 12.0%).

• Adjusted EPS increased 2% to $1.59; diluted EPS was $2.42 (up 102%); closed sales up 24% to $57M.

• Free cash flow for the first six months was $318.5M, up from $56.3M YoY.

• Net cash from operating activities for six months was $367.1M.

• Recorded a $137M unrealized and $53M realized gain on digital asset holdings, excluded from adjusted EPS.

Outlook and guidance

• Fiscal 2026 recurring revenue growth expected at the higher end of 5%-7% (constant currency); Adjusted Operating income margin guidance of 20%-21%.

• Adjusted EPS growth guidance raised to 9%-12%.

• Closed sales guidance reaffirmed at $290M-$330M.

• Event-driven revenues expected to normalize to ~$60M per quarter in H2.

• Management expects cash generation and liquidity to cover all operational and strategic needs for at least 12 months.