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BR Stock Rises 14.3% in Three Months: Here's What You Should Know
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Key Takeaways
Broadridge stock gained 14.3% in three months, beating industry growth of 14.2% and the S&P 500's 2.5%.
BR's recurring revenues rose 8% to $4.9 billion in fiscal 2026, while its sales backlog reached $470 million.
Broadridge targets $25 million in AI savings and 8-12% adjusted EPS growth in fiscal 2027.
Broadridge Financial Solutions, Inc. (BR - Free Report) stock has gained 14.3% over the past three months, marginally outpacing the industry’s 14.2% growth and significantly outperforming the Zacks S&P 500 Composite's 2.5% return.
Three-Month Share Price Performance
Image Source: Zacks Investment Research
Let us delve deeper into the factors contributing to the company’s outperformance.
BR’s High Recurring Revenues & Backlog Support Expansion
Broadridge's recurring revenue model, high client retention and expanding sales pipeline provide visibility into future growth. In fiscal 2026, recurring revenues rose 8% in constant currency to $4.9 billion, including 6% organic growth, while client retention remained at 98%. Record fourth-quarter closed sales of $158 million lifted the backlog to $470 million, up $40 million year over year. With its sales pipeline growing more than one-third, management projects fiscal 2027 recurring revenue growth of 6-8% and closed sales of $290-$330 million. Continued backlog conversion and new sales should support sustained organic growth and revenue visibility.
Broadridge is leveraging agentic artificial intelligence (AI) to streamline operations, accelerate client onboarding and enhance its product offerings. AI-enabled and next-generation solutions accounted for nearly 40% of fiscal 2026 closed sales, reflecting increasing demand for advanced technology.
Management expects $25 million in AI-driven productivity savings in fiscal 2027, supporting reinvestment and operating leverage. Adjusted operating margin is projected to reach approximately 21%, up from 20.5% in fiscal 2026, while adjusted EPS is expected to rise 8-12%. Continued automation and operational efficiencies should strengthen profitability over time.
Broadridge's consistent cash generation supports strategic investments, acquisitions and shareholder returns. In fiscal 2026, operating cash flow reached $1.35 billion, while free cash flow totaled $1.23 billion, representing 110% of adjusted net earnings. The company returned more than $1 billion to shareholders through dividends and net share repurchases. A 12% dividend increase and continued buybacks reinforce its commitment to capital returns. Healthy cash flows and disciplined capital allocation should support long-term shareholder value.
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BR Stock Rises 14.3% in Three Months: Here's What You Should Know
Key Takeaways
Broadridge Financial Solutions, Inc. (BR - Free Report) stock has gained 14.3% over the past three months, marginally outpacing the industry’s 14.2% growth and significantly outperforming the Zacks S&P 500 Composite's 2.5% return.
Three-Month Share Price Performance
Image Source: Zacks Investment Research
Let us delve deeper into the factors contributing to the company’s outperformance.
BR’s High Recurring Revenues & Backlog Support Expansion
Broadridge's recurring revenue model, high client retention and expanding sales pipeline provide visibility into future growth. In fiscal 2026, recurring revenues rose 8% in constant currency to $4.9 billion, including 6% organic growth, while client retention remained at 98%. Record fourth-quarter closed sales of $158 million lifted the backlog to $470 million, up $40 million year over year. With its sales pipeline growing more than one-third, management projects fiscal 2027 recurring revenue growth of 6-8% and closed sales of $290-$330 million. Continued backlog conversion and new sales should support sustained organic growth and revenue visibility.
BR’s AI-Led Innovation Drives Efficiency & Earnings Growth
Broadridge is leveraging agentic artificial intelligence (AI) to streamline operations, accelerate client onboarding and enhance its product offerings. AI-enabled and next-generation solutions accounted for nearly 40% of fiscal 2026 closed sales, reflecting increasing demand for advanced technology.
Management expects $25 million in AI-driven productivity savings in fiscal 2027, supporting reinvestment and operating leverage. Adjusted operating margin is projected to reach approximately 21%, up from 20.5% in fiscal 2026, while adjusted EPS is expected to rise 8-12%. Continued automation and operational efficiencies should strengthen profitability over time.
BR’s Strong Cash Generation Supports Shareholder Returns
Broadridge's consistent cash generation supports strategic investments, acquisitions and shareholder returns. In fiscal 2026, operating cash flow reached $1.35 billion, while free cash flow totaled $1.23 billion, representing 110% of adjusted net earnings. The company returned more than $1 billion to shareholders through dividends and net share repurchases. A 12% dividend increase and continued buybacks reinforce its commitment to capital returns. Healthy cash flows and disciplined capital allocation should support long-term shareholder value.
BR’s Zacks Rank & Stocks to Consider
Broadridge currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of better-ranked stocks in the broader Computer and Technology sector are Cisco Systems, Inc. (CSCO - Free Report) and CoStar Group, Inc. (CSGP - Free Report) .
Cisco Systems carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 10.9%.
CSCO beat earnings estimates in each of the trailing four quarters, delivering an earnings surprise of 2.6%, on average.
CoStar Group also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 36.6%.
CSGP beat earnings estimates in each of the trailing four quarters, with an average earnings surprise of 21.2%.