Broadridge reported strong results for the first quarter of fiscal 2027, with adjusted earnings and total revenue significantly exceeding analyst expectations. Growth was primarily driven by the software-as-a-service transition, reflected in robust recurring revenue expansion across both major reporting segments.
Key Highlights
- Recurring revenue increased 11% constant currency to $1.08 billion, supported by 9% organic growth and contributions from the CQG acquisition.
- Adjusted EPS of $1.56 beat the $1.37 consensus estimate by 14%, even as event-driven revenues fell 41% YoY to $67 million due to lower mutual fund proxy volume.
- Global Technology and Operations (GTO) recurring revenues grew 13% to $516 million, bolstered by a 17% increase in Capital Markets revenue.
- Management reaffirmed its full-year fiscal 2027 guidance, maintaining targets for 6-8% recurring revenue growth and 8-12% adjusted EPS growth.