Strong Revenue Growth Across the Business
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.
Net Income and EPS Outpaced Revenue Growth
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.
SG&A Expense Growth Is a Margin Headwind
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%.