AI Takeaway
BR (Broadridge Financial Solutions) delivered strong Q2 FY2026 results with revenue up 7.8% YoY to $1.71B and net income nearly doubling to $284.6M, though operating margin contracted slightly as SG&A costs rose 14.9%.
Revenue
$1.71B
++7.85% YoY
EPS (Basic)
$2.44
++100.00% YoY
Operating Income
$206M
-2.23% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 7.8% YoY to $1.71B in Q2 FY2026 (from $1.59B), reflecting continued demand for Broadridge's financial technology and services. This growth was achieved despite a competitive environment, suggesting solid client retention and new business wins.
Source: Source: 10-Q Income Statement Data
Net income surged 99.9% YoY to $284.6M from $142.4M, with net margin expanding to 16.6%. The outsized gain relative to operating income growth suggests significant non-operating items or tax benefits contributed materially to the bottom line.
Source: Source: 10-Q Income Statement Data
SG&A expenses rose 14.9% YoY to $267.5M, outpacing revenue growth of 7.8%, which contributed to operating margin compression from 13.3% to 12.0%. Cost of revenue also grew 8.2%, slightly faster than revenue, adding further margin pressure.
Source: Source: 10-Q Income Statement & Ratio Data
2 more insights available
Upgrade to unlockBR's current ratio stands at 0.97, meaning current liabilities of $1.74B exceed current assets of $1.69B. Current liabilities surged 56.4% YoY, which could indicate increased short-term debt obligations or deferred revenue reclassifications. This warrants monitoring for any refinancing or liquidity management needs.
Source: Source: 10-Q Balance Sheet Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.59 versus the $1.40 analyst consensus — a +13.4% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.71B | $1.59B | +7.85% |
Cost of Revenue | $1.24B | $1.15B | +8.25% |
Operating Income | $206M | $210.7M | -2.23% |
Net Income | $284.6M | $142.4M | +99.86% |
EPS (Basic) | $2.44 | $1.22 | +100.00% |
EPS (Diluted) | $2.42 | $1.20 | +101.67% |
SG&A Expense | $267.5M | $232.8M | +14.91% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $8.64B | $8.23B | +4.97% |
Current Assets | $1.69B | $1.51B | +12.30% |
Total Liabilities | $5.76B | $6B | -4.03% |
Current Liabilities | $1.74B | $1.11B | +56.40% |
Stockholders' Equity | $2.88B | $2.23B | +29.21% |
Cash & Equivalents | $370.7M | $289.9M | +27.87% |
Long-Term Debt | $3.17B | $3.66B | -13.20% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $367.1M | $111.2M | +230.13% |
Investing Cash FlowYTD | $-122.5M | $-250.4M | +51.08% |
Financing Cash FlowYTD | $-438.4M | $127.7M | -443.30% |
Dividends PaidYTD | $216.9M | $196.2M | +10.55% |
Share BuybacksYTD | $152.5M | $3.9M | +3810.26% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 12.0% | 13.3% | -1.24% |
Net Margin | 16.6% | — | — |
ROE | 9.9% | — | — |
ROA | 3.3% | — | — |
Current Ratio | $0.972 | — | — |
Debt to Equity | $2.001 | — | — |
BR reported Q2 FY2026 revenue of $1.71B, up 7.8% YoY, and net income of $284.6M, which nearly doubled from $142.4M a year ago. However, operating income actually declined 2.2% to $206.0M, suggesting the earnings surge was driven by non-operating items rather than core business improvement. SG&A costs rose 14.9%, compressing operating margin to 12.0% from 13.3%.
BR's revenue grew 7.8% year-over-year to $1.71B in Q2 FY2026, up from $1.59B in the same quarter of the prior fiscal year. This growth reflects continued demand for Broadridge's financial technology and investor communications services, though cost growth slightly outpaced revenue expansion.
BR's net income surged 99.9% YoY to $284.6M in Q2 FY2026, far outpacing the 7.8% revenue growth and the 2.2% decline in operating income. The disconnect between operating and net income suggests significant non-operating gains, investment income, or tax benefits drove the bottom-line result, though the specific items are not detailed in the available data.
BR's balance sheet shows improving health with long-term debt declining 13.2% YoY to $3.17B and stockholders' equity growing 29.2% to $2.88B, though the current ratio of 0.97 is slightly below 1.0, indicating current liabilities marginally exceed current assets. The company generated $367.1M in operating cash flow YTD (up 230%) and returned $369.4M to shareholders through dividends and buybacks. The debt-to-equity ratio of 2.0 reflects a still-leveraged but improving capital structure.
BR paid $216.9M in cumulative dividends in the fiscal year-to-date period through Q2 FY2026, up 10.6% from $196.2M in the same prior-year period. Additionally, the company significantly accelerated share buybacks to $152.5M YTD, compared to just $3.9M in the prior-year period, signaling increased capital return to shareholders.