Why Broadridge Financial Solutions Stock Is Soaring Today

Broadridge Financial Solutions (BR) jumped 7% after fourth-quarter earnings beat Wall Street estimates. Full-year revenue climbed 8% and adjusted earnings per share grew 12%. The company raised its dividend 12%—the 20th consecutive annual increase—and set 2027 guidance for sales growth of 6-8% and adjusted EPS expansion of 8-12%.

The rally comes after a brutal 12 months for BR shareholders, with shares down 32% amid concerns that tokenization and blockchain-based settlement could disrupt the company's core proxy voting and shareholder communications business. At current levels, the stock trades at 16 times free cash flow and yields 2.5%.

The guidance suggests management sees a path through the technological headwinds. Revenue growth at the midpoint of 7% and EPS growth of 10% would represent solid execution for a financial infrastructure play that has historically traded at a premium to the market. The two-decade dividend streak underscores cash generation, even as the firm invests to counter digital threats to its legacy franchise.