BR · 10-K · 2026A · Full report

Income Tax Rate Changes

BROADRIDGE FINANCIAL SOLUTIONS, INC. · 2026-08-04 · Importance 45 · Surprise 38 · Contradicted

The effective income tax rate increased 1.5 percentage points to 22.2% in fiscal 2026 from 20.7% in fiscal 2025. The provision for income taxes increased $102.3 million to $321.6 million as pre-tax income increased. The higher tax rate was primarily driven by increased pre-tax income and lower total discrete tax benefits. The decline in discrete benefits primarily reflected a decrease in the excess tax benefit associated with stock-based compensation.

Key facts

• The Company is unable to make reasonably reliable estimates related to the timing of the remaining gross unrecognized tax benefit liability of $99.8 million (inclusive of interest). source
• If foreign funds are needed for U.S. operations, the Company may be required to pay additional foreign taxes to repatriate these funds. source
• Provision for income taxes for fiscal year ended June 30, 2026: $321.6 million; effective tax rate 22.2% (compared to 20.7% for fiscal year 2025). source
• Estimated foreign net operating loss carryforwards as of June 30, 2026: approximately $41.6 million, of which $7.2 million are subject to expiration in the June 30, 2028 through June 30, 2043 period and $34.4 million have an indefinite utilization period. source
• Estimated U.S. federal net operating loss carryforwards as of June 30, 2026: approximately $20.0 million, of which $6.3 million are subject to expiration in the June 30, 2027 through June 30, 2037 period and $13.7 million have an indefinite utilization period. source
• Valuation allowances recorded: $6.9 million at June 30, 2026 and $11.2 million at June 30, 2025. source
• Refer to Note 19, “Income Taxes” for further detail on uncertain tax positions including the $99.8 million unrecognized tax benefit liability. source
• The Company did not generate federal net operating losses for the fiscal year ended June 30, 2026. source

Impact estimates