Financial technology provider Broadridge (NYSE: BR) reported revenue ahead of Wall Streets expectations in Q4 CY2025, with sales up 7.8% year on year to $1.71 billion. Its non-GAAP profit of $1.59 per share was 16.8% above analysts’ consensus estimates.
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Broadridge (BR) Q4 CY2025 Highlights:
- Revenue: $1.71 billion vs analyst estimates of $1.61 billion (7.8% year-on-year growth, 6.5% beat)
- Adjusted EPS: $1.59 vs analyst estimates of $1.36 (16.8% beat)
- Adjusted EBITDA: $130.3 million vs analyst estimates of $279.9 million (7.6% margin, 53.4% miss)
- Operating Margin: 12%, down from 13.3% in the same quarter last year
- Free Cash Flow Margin: 17.8%, up from 13.5% in the same quarter last year
- Market Capitalization: $23.15 billion
Company Overview
Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE: BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.
With $7.18 billion in revenue over the past 12 months, Broadridge is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions.
As you can see below, Broadridge grew its sales at a solid 8.9% compounded annual growth rate over the last five years. This is an encouraging starting point for our analysis because it shows Broadridge’s demand was higher than many business services companies.
We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Broadridge’s annualized revenue growth of 6.6% over the last two years is below its five-year trend, but we still think the results were respectable. 
This quarter, Broadridge reported year-on-year revenue growth of 7.8%, and its $1.71 billion of revenue exceeded Wall Street’s estimates by 6.5%.
Looking ahead, sell-side analysts expect revenue to grow 3% over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and implies its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health.
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Operating Margin
Broadridge has been an efficient company over the last five years. It was one of the more profitable businesses in the business services sector, boasting an average operating margin of 15.3%.
Analyzing the trend in its profitability, Broadridge’s operating margin rose by 4.4 percentage points over the last five years, as its sales growth gave it operating leverage.
This quarter, Broadridge generated an operating margin profit margin of 12%, down 1.2 percentage points year on year. This reduction is quite minuscule and indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Broadridge’s solid 10.5% annual EPS growth over the last five years aligns with its revenue performance. This tells us its incremental sales were profitable.
Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
Broadridge’s two-year annual EPS growth of 11.8% was decent and topped its 6.6% two-year revenue growth.
We can take a deeper look into Broadridge’s earnings quality to better understand the drivers of its performance. While we mentioned earlier that Broadridge’s operating margin declined this quarter, a two-year view shows its margin has expandedwhile its share count has shrunk 1.2%. Improving profitability and share buybacks are positive signs for shareholders as they juice EPS growth relative to revenue growth. 
In Q4, Broadridge reported adjusted EPS of $1.59, up from $1.56 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Broadridge’s full-year EPS of $9.09 to grow 5.8%.
Key Takeaways from Broadridge’s Q4 Results
It was good to see Broadridge beat analysts’ EPS expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock traded up 1.7% to $201.67 immediately following the results.
Broadridge put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
