AI Takeaway
BR (Broadridge Financial Solutions) delivered solid Q3 FY2026 results with revenue up 7.8% to $1.95B and net income surging 13.7% to $276.3M, though SG&A cost growth and a current ratio below 1.0 warrant monitoring.
Revenue
$1.95B
++7.83% YoY
EPS (Basic)
$2.38
++14.98% YoY
Operating Income
$359.5M
++4.23% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 7.8% year-over-year to $1.95B in Q3 FY2026 (from $1.81B in Q3 FY2025), reflecting continued demand for BR's financial technology and services. This growth rate outpaced cost of revenue growth of 7.3%, indicating modest operating leverage at the gross level.
Source: Source: 10-Q Income Statement
Net income rose 13.7% to $276.3M and diluted EPS increased 15.1% to $2.36, meaningfully outpacing the 7.8% revenue growth rate. This suggests improved profitability efficiency, potentially aided by lower interest costs as long-term debt declined 6.0% to $3.23B.
Source: Source: 10-Q Income Statement & Balance Sheet
SG&A expenses rose 15.8% year-over-year to $267.4M, significantly outpacing revenue growth of 7.8%. This contributed to operating margin compression of approximately 63 basis points, declining from 19.0% to 18.4%.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockCurrent liabilities surged 50.8% to $1.91B while current assets grew only 7.9% to $1.80B, resulting in a current ratio of 0.94 — below the 1.0 threshold. This means BR's short-term obligations exceed its short-term assets, which could signal upcoming debt maturities or increased short-term borrowings that need to be refinanced.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.72 versus the $2.68 analyst consensus — a +1.4% beat for Q3 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.95B | $1.81B | +7.83% |
Cost of Revenue | $1.33B | $1.24B | +7.35% |
Operating Income | $359.5M | $344.9M | +4.23% |
Net Income | $276.3M | $243.1M | +13.66% |
EPS (Basic) | $2.38 | $2.07 | +14.98% |
EPS (Diluted) | $2.36 | $2.05 | +15.12% |
SG&A Expense | $267.4M | $230.9M | +15.81% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $8.78B | $8.3B | +5.78% |
Current Assets | $1.8B | $1.67B | +7.94% |
Total Liabilities | $5.96B | $5.92B | +0.73% |
Current Liabilities | $1.91B | $1.26B | +50.80% |
Stockholders' Equity | $2.82B | $2.38B | +18.32% |
Cash & Equivalents | $304.8M | $317.2M | -3.91% |
Long-Term Debt | $3.23B | $3.43B | -6.02% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $668.2M | $471.6M | +41.69% |
Investing Cash FlowYTD | $-225.4M | $-276.1M | +18.36% |
Financing Cash FlowYTD | $-697.9M | $-177.5M | -293.18% |
Dividends PaidYTD | $330.7M | $299.2M | +10.53% |
Share BuybacksYTD | $352.9M | $4.2M | +8302.38% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 18.4% | 19.0% | -0.64% |
Net Margin | 14.1% | — | — |
ROE | 9.8% | — | — |
ROA | 3.1% | — | — |
Current Ratio | $0.943 | — | — |
Debt to Equity | $2.115 | — | — |
BR reported Q3 FY2026 revenue of $1.95B, up 7.8% year-over-year, and net income of $276.3M, up 13.7%. Diluted EPS came in at $2.36, a 15.1% increase from $2.05 in Q3 FY2025, reflecting strong profitability improvement.
The key takeaways include strong revenue and EPS growth, a 41.7% surge in year-to-date operating cash flow to $668.2M, and aggressive capital returns via $352.9M in buybacks and $330.7M in dividends. However, SG&A expenses grew 15.8% — more than double the revenue growth rate — and current liabilities spiked 50.8%, pushing the current ratio below 1.0 to 0.94.
BR shows solid profitability with a 14.1% net margin and strong operating cash flow generation, but its current ratio of 0.94 and debt-to-equity ratio of 2.11 indicate elevated leverage and near-term liquidity tightness. Long-term debt did decline 6.0% to $3.23B, which is a positive trend, but the sharp rise in current liabilities requires monitoring.
BR's operating margin declined from 19.0% to 18.4% in Q3 FY2026, primarily because SG&A expenses grew 15.8% year-over-year to $267.4M — more than twice the 7.8% revenue growth rate. This cost pressure offset the modest improvement in gross-level profitability where cost of revenue grew slightly slower than revenue.
On a fiscal year-to-date basis through Q3 FY2026, BR returned over $683M to shareholders, comprising $352.9M in share buybacks (up dramatically from just $4.2M in the prior-year period) and $330.7M in dividends paid (up 10.5% year-over-year). This significant acceleration in capital returns contributed to the sharp increase in financing cash outflows.