Shares of Broadridge Financial Solutions BR have dipped 31.6% in the past six months compared with the industry’s 8.5% decline.
Broadridge’s revenues in 2026 and 2027 are expected to increase 7.7% and 4.5% year over year, respectively. Earnings are anticipated to rise 11% in 2026 and 9.7% in 2027.
Factors That Augur Well for BR’s Success
Recurring Revenue Streams: Broadridge maintains a robust business model with substantial recurring revenue streams, providing good visibility into its organic revenues in the near to mid-term. A significant portion of the income is derived from recurring fees, encompassing net new business, internal expansion and acquisition-related benefits. In the first quarter of fiscal 2026, recurring revenues accounted for nearly 61% of the total revenues despite ongoing economic uncertainty.
Itiviti Buyout Benefits Segmental Revenue Growth: Increasing footprint in EMEA and APAC through the Itiviti acquisition has bolstered Broadridge’s global technology and operations segment. Revenues in this segment increased 7.7% year over year in fiscal 2025. Itiviti is an effective strategic fit for Broadridge’s capital markets franchise and significantly contributes to BR’s international revenue growth.
Consistent Dividend Payments: In fiscal 2023, 2024 and 2025, the company paid out $331.0 million, $368.2 million and $402.3 million, respectively, in dividends. These payments reflect the company’s commitment to returning value to shareholders and underscore its confidence in the business. We expect steady income growth, which will translate into steady cash flow, enabling Broadridge to pay out stable dividends.
Risks Faced by Broadridge
Concentration Risks: BR is heavily exposed to the securities industry (including brokerages and asset managers). A material downturn in the markets will have an adverse impact on this industry and affect Broadridge’s business.
Weak Liquidity: Broadridge's current ratio at the end of the third quarter of fiscal 2026 was pegged at 0.94, lower than the industry average of 1.92. A current ratio of less than 1 does not bode well with investors as it indicates that the company will not find it easy to pay off its short-term obligations.
Broadridge’s Zacks Rank & Stocks to Consider
The company has a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader Zacks Computer and Technology sector are Dell Technologies DELL and Paycom Software PAYC, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies has a long-term earnings growth expectation of 26.4%. DELL delivered a trailing four-quarter earnings surprise of 18.7%, on average.
Paycom Software has a long-term earnings growth expectation of 12.6%. PAYC delivered a trailing four-quarter earnings surprise of 5.7%, on average.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report
Dell Technologies Inc. (DELL): Free Stock Analysis Report
Paycom Software, Inc. (PAYC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).