BR · Earnings call · 2026Q2T · Full report

Interest Rate Environment

BROADRIDGE FINANCIAL SOLUTIONS, INC. · 2026-08-04 · Importance 24 · Surprise 32

Lower interest rates created a 40-basis-point headwind to Broadridge’s fiscal 2026 adjusted operating margin through lower float income. In ICS, lower rates were a two-point headwind to organic data-driven fund solutions growth and a one-point headwind to issuer revenue growth in the fourth quarter. Management expects fiscal 2027 recurring-revenue growth to remain strong despite the rate-related pressure, supported by sales and backlog conversion.

Key facts

• Lower float income tied to interest rates and the increase in pass-through distribution revenue was a 40 basis point headwind to full-year margin.