Broadridge Financial Solutions (BR) shares surged 5.97% in pre-market trading on Tuesday, following the release of its fiscal fourth-quarter results that exceeded analyst expectations and the announcement of a significant dividend increase and a new share buyback program.
The company reported adjusted earnings per share of $3.82, beating the consensus estimate of $3.76. Revenue for the quarter came in at $2.22 billion, also surpassing the $2.17 billion forecast. The results were driven by strength in its core investor communication solutions segment, which saw revenue climb to $1.73 billion from $1.6 billion a year earlier. Full-year fiscal 2026 diluted EPS rose 35% to $9.60.
In addition to the earnings beat, Broadridge's board raised the quarterly dividend by 12% to $1.09 per share and authorized a new $1.5 billion share-repurchase program. The company also provided a positive outlook for fiscal 2027, targeting 8% to 12% adjusted EPS growth, with CEO Tim Gokey highlighting the company's investments in agentic AI to drive future growth and productivity.