Company Reports

Broadridge Financial Solutions has been the dominant proxy and interim services provider for broker/dealers for more than 20 years. Its regulated proxy and interim business is its crown jewel, and a disproportionate amount of its net income comes from its fiscal third and fourth quarters during proxy season. Broadridge generates over 30% of its fee revenue and EBITDA from its global technology and operations segment, which provides securities processing solutions. Broadridge has benefited from higher engagement of retail investors through higher position growth and elevated trading volume.

Broadridge finished fiscal 2026 on a high note. Fiscal fourth-quarter revenue grew 7% and adjusted earnings per share grew 8%, both beating the FactSet consensus estimate by 2%. Broadridge’s closed sales (a metric akin to bookings) eclipsed its guidance. Shares rose 8% in Aug. 4 intraday trading.

Broadridge reported a decent fiscal third quarter, with 7% revenue growth and 11% adjusted EPS growth. Broadridge raised its fiscal 2026 revenue and adjusted EPS outlook but lowered its closed sales outlook.

Broadridge Financial Solutions has been the dominant proxy and interim services provider for broker/dealers for more than 20 years. Its regulated proxy and interim business is its crown jewel, and a disproportionate amount of its net income comes from its fiscal third and fourth quarters during proxy season. Broadridge generates over 30% of its fee revenue and EBITDA from its global technology and operations segment, which provides securities processing solutions. Broadridge has benefited from higher engagement of retail investors through higher position growth and elevated trading volume.

Amid the possibility of generative AI disrupting many industries, we reviewed the moat ratings for an array of capital markets information services stocks, including Broadridge, Clearwater Analytics, FactSet, Fair Isaac, Moody’s, MSCI, S&P Global, SS&C Technologies, and Verisk.

Broadridge Financial Solutions has been the dominant proxy and interim services provider for broker/dealers for more than 20 years. Its regulated proxy and interim business is its crown jewel, and a disproportionate amount of its net income comes from its fiscal third and fourth quarters during proxy season. Broadridge generates over 30% of its fee revenue and EBITDA from its global technology and operations segment, which provides securities processing solutions. Broadridge has benefited from higher engagement of retail investors through higher position growth and elevated trading volume.

Broadridge reported a solid fiscal second quarter with revenue and adjusted EPS edging FactSet consensus estimates, while the firm provided a slightly higher EPS outlook. Shares initially ticked higher but fell 5% to 6% during Feb. 2 trading amid a broader slump in information services stocks.

In its seasonally soft first fiscal quarter, Broadridge reported 5% organic recurring fee growth with global technology and operations, or GTO, holding steady at 6% amid high trade volume. Investor communications solutions, or ICS, growth decelerated slightly. This resulted in a muted reaction.

Broadridge Financial Solutions has been the dominant proxy and interim services provider for broker/dealers for more than 20 years. Its regulated proxy and interim business is its crown jewel, and a disproportionate amount of its net income comes from its fiscal third and fourth quarters during proxy season. Broadridge generates over 30% of its fee revenue and EBITDA from its global technology and operations segment, which provides securities processing solutions. Broadridge has benefited from higher engagement of retail investors through higher position growth and elevated trading volume.

Broadridge had a solid fiscal fourth quarter with 6% revenue growth. Equity position growth was 18% with billable growth of 14%, up from 15% and 11%, respectively, in the third quarter. As is customary with the fourth-quarter release, Broadridge provided an initial outlook for its next fiscal year.

Invesco filed a preliminary proxy on July 17 to shift its flagship QQQ exchange-traded fund, which tracks the Nasdaq-100 index, from a unit investment trust to an open-end fund. If shareholders approve, Bank of New York Mellon will still provide asset servicing but no longer be a trustee.

Broadridge saw fiscal third-quarter recurring fee revenue growth, revenue growth, and adjusted EPS growth of 7%, 5%, and 9% respectively. With one quarter left to fiscal 2025, Broadridge mostly reaffirmed its outlook but lowered its closed sales outlook by 13% to $270 million at the midpoint.

After adjusting our model, we are increasing our fair value estimate on wide-moat Broadridge to $275 per share from $250 primarily as we raise our medium-term expectations for regulatory revenue.

Broadridge Financial Solutions has been the dominant proxy and interim services provider for broker/dealers for more than 20 years. Its regulated proxy and interim business is its crown jewel, and a disproportionate amount of its net income comes from its fiscal third and fourth quarters during proxy season. Broadridge generates just over 30% of its fee revenue and profit from its global technology and operations segment, which provides securities processing solutions. Broadridge has benefited from higher engagement of retail investors through higher position growth and elevated trading volume.

We are upgrading our moat rating for Broadridge to Wide from Narrow and are increasing our fair value estimate to $250 per share from $220 primarily as we have greater confidence in the company’s ability to generate excess returns on capital over time.

Broadridge Financial Solutions has been the dominant proxy and interim services provider for broker/dealers for more than 20 years. Its regulated proxy and interim business is its crown jewel, and a disproportionate amount of its net income comes from its fiscal third and fourth quarters during proxy season. Broadridge generates just over 30% of its fee revenue and profit from its global technology and operations segment, which provides securities processing solutions. Broadridge has benefited from higher engagement of retail investors through higher position growth and elevated trading volume.

Broadridge Financial Solutions reported a strong fiscal second quarter. Revenue of $1.59 billion and adjusted EPS of $1.56 beat the respective FactSet consensus estimates of $1.56 billion and $1.49. We attribute the revenue beat to mostly higher event-driven revenue that can be lumpy. Despite the strong quarter, Broadridge maintained its outlook and the stock has had a strong run over the last three months—we believe this accounts for the lack of a meaningful positive market reaction despite a strong quarter. As we incorporate these results, we expect to increase our fair value estimate of $220 by a single-digit percentage, and we will maintain our narrow moat rating. Position growth is coming in ahead of our expectations, and aside from foreign exchange headwinds, we do not see other headwinds and believe that management’s outlook may prove conservative at the midpoint.

Broadridge Financial Solutions has been the dominant proxy and interim services provider for broker/dealers for more than 20 years. Its regulated proxy and interim business is its crown jewel, and a disproportionate amount of its net income comes from its fiscal third and fourth quarters during proxy season. Broadridge generates about 30% of its fee revenue and profit from its global technology and operations segment, which provides securities processing solutions. Broadridge has benefited from higher engagement of retail investors through higher position growth and elevated trading volume.

Broadridge reported an OK start to its fiscal year. Broadridge raised its recurring revenue outlook by 1 percentage point at the midpoint, but this was largely due to its acquisition of Securities Industry Services. Overall, there was little in its earnings release that would alter our long-term view of the firm, and we will maintain our $205 fair value estimate and narrow moat rating.

Broadridge Financial Solutions has been the dominant proxy and interim service provider for broker/dealers for more than 20 years. Its regulated proxy and interim business is its crown jewel, and a disproportionate amount of its net income comes from its fiscal third and fourth quarter during proxy season. In addition, Broadridge generates about 30% of its fee revenue and profit from its global technology and operations segment, which provides securities processing solutions. Amid covid-19, Broadridge has benefited from higher engagement of retail investors through higher position growth and elevated trading volume.