It has been about a month since the last earnings report for Broadridge Financial Solutions (BR). Shares have added about 5.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Broadridge Financial due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Broadridge Financial Solutions, Inc. before we dive into how investors and analysts have reacted as of late.
Broadridge Beats Q1 Earnings Estimates
Broadridge Financial Solutions reported impressive first-quarter fiscal 2026 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings of $1.51 per share topped the consensus mark by 27% and increased 51% from the year-ago quarter. Total revenues of $1.59 billion surpassed the consensus mark by 3.56% and were up 11.7% year over year.
Recurring revenues of $977 million rose 9% year over year on a reported basis and 8% on a constant-currency basis.
Other Key Q1 Metrics for BR
Revenues in the Investor Communication Solutions segment increased 11.3% from the year-ago quarter’s level to $1.02 billion, below our estimate of $1.07 billion. The Global Technology and Operations segment’s revenues amounted to $459.5 million, beating our estimate of $441.5 million and increasing 12.8% on a year-over-year basis.
Adjusted operating income of $251.2 million increased 36% year over year. The adjusted operating income margin of 15.8% increased 280 basis points year over year.
Broadridge exited the quarter with a cash and cash equivalents balance of $290.7 million compared with $561.5 million at the end of the preceding quarter. Long-term debt was $2.78 billion compared with $2.75 billion in the prior quarter.
The company generated $42.3 million of cash from operating activities, and capex was $15.2 million in the quarter. It paid out $103.1 million in dividends.
BR's FY25 Guidance
The company expects recurring revenue growth to be 5-7%. Adjusted EPS growth is expected to be 8-12%. The adjusted operating income margin is estimated to be around 20-21%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -11.59% due to these changes.
VGM Scores
At this time, Broadridge Financial has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Broadridge Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Broadridge Financial belongs to the Zacks Internet - Software industry. Another stock from the same industry, Reddit Inc. (RDDT), has gained 12.5% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Reddit Inc. reported revenues of $584.91 million in the last reported quarter, representing a year-over-year change of +67.9%. EPS of $0.80 for the same period compares with $0.16 a year ago.
Reddit Inc. is expected to post earnings of $0.97 per share for the current quarter, representing a year-over-year change of +169.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Reddit Inc.. Also, the stock has a VGM Score of F.
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Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report Reddit Inc. (RDDT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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