Broadridge Financial Solutions has entered its 2026 fiscal year with significant momentum, driven by better-than-expected quarterly results and a key strategic purchase. The financial technology firm’s latest moves signal a clear expansion strategy, though questions remain about the durability of this growth in the current market climate.
Quarterly Results Exceed Projections
Reporting its Q2 2026 earnings last Tuesday, Broadridge surpassed market forecasts for both revenue and profit. Total revenue advanced to $1.71 billion, an 8% year-over-year increase. A critical component of its business model, recurring revenue, demonstrated robust growth of 9%, reaching $1.07 billion.
Adjusted earnings per share (EPS) came in at $1.59. In response to this strong operational performance, the company’s leadership has revised its full-year 2026 outlook upward. The new projection calls for adjusted EPS growth in a range of 9% to 12%.
Acquisition to Enhance Trading Capabilities
In a strategic move to bolster its position in trading solutions, Broadridge announced on Friday the planned acquisition of CQG. The target company specializes in futures and options trading, execution management, and market connectivity.
Should investors sell immediately? Or is it worth buying Broadridge?
This acquisition is designed to integrate algorithmic trading and advanced analytics into a comprehensive platform for the global derivatives market. Subject to customary closing conditions and regulatory approvals, the transaction is anticipated to be finalized during the fourth quarter of the 2026 fiscal year.
Long-Term Strategy Emphasizes Innovation
During an investor conference held this Monday, management detailed its long-term strategic focus. A core priority involves continued investment in innovative technologies, specifically artificial intelligence and blockchain. These investments are aimed at boosting operational efficiency and enhancing the client experience.
Furthermore, the company intends to further scale its wealth management platform. For the period spanning 2024 to 2026, Broadridge is targeting annual recurring revenue growth of 7% to 9%. Investors throughout the current year will be closely monitoring the progress of the CQG integration and the company’s ability to meet its ambitious growth targets.
Key Data Points:
* Quarterly Revenue: $1.71 billion (an 8% increase year-over-year)
* Recurring Revenue: Grew 9% to $1.07 billion
* Adjusted Earnings Per Share: $1.59
* 2026 Outlook: Raised adjusted EPS growth target to 9–12%
* Strategic Move: Acquisition of derivatives trading specialist CQG announced
Ad
Broadridge Stock: Buy or Sell?! New Broadridge Analysis from February 9 delivers the answer:
The latest Broadridge figures speak for themselves: Urgent action needed for Broadridge investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 9.
Broadridge: Buy or sell? Read more here...
