BR · Earnings call · 2026Q2T · Full report

Margin Drivers

BROADRIDGE FINANCIAL SOLUTIONS, INC. · 2026-08-04 · Importance 13 · Surprise 6 · No source text

Fiscal 2026 adjusted operating income margin increased slightly to 20.5%, despite a 40-basis-point headwind from lower interest rates and higher postage. Fourth-quarter adjusted operating margin declined 10 basis points to 26.9% because operating leverage was offset by the timing of growth investments. Lower float income tied to interest rates and higher pass-through distribution revenue together reduced full-year margin by 40 basis points. Fiscal 2027 guidance calls for approximately 21% adjusted operating margin, supported by operating leverage and $25 million of AI-driven productivity gains.

Key facts

• Guidance: expect adjusted operating income margin of approximately 21%, up from 20.5% in fiscal '26.
• Adjusted operating income margin for fiscal '26 rose slightly to 20.5%.
• Q4 adjusted operating income margin was 26.9%, down 10 basis points from Q4 '25.

Impact estimates