Investigating if Broadridge Financial's stock is lagging behind the Nasdaq's performance.
Broadridge Financial Solutions Posts Strong Q4 Results, Yet Stock Underperforms on Yahoo Finance
Broadridge Financial Solutions, a global leader in financial technology with a market cap of $29.3 billion, reported impressive Q4 2025 results. The company surpassed Wall Street estimates, with adjusted EPS of $3.55 and revenue of $2.07 billion.
The growth in Broadridge's segments was driven by robust demand for proxy communications, digital wealth, and market infrastructure services. The Investor Communication Solutions segment saw a growth of 5%, while the Global Technology & Operations segment experienced a 12% increase.
Despite these positive results, investor sentiment on BR remains cautious. Over the past three months, BR stock has risen 2.8% on Yahoo Finance, underperforming the Nasdaq Composite's 13.4% increase. Over the past 52 weeks, BR stock has soared 16.1%, while the Nasdaq Composite has nearly 27% return over the same time frame.
In the longer term, BR stock is up 8.6% on a YTD basis, lagging behind the NASX's 15.7% gain. Rival Leidos Holdings, Inc. (LDOS) has outperformed Broadridge stock, with a YTD gain of 26.7% and a 52-week gain of 17.9% on Yahoo Finance.
However, the mean price target of $277.57 for BR stock is a premium of 13% to current levels. Seven analysts rate the stock overall as "Buy" with a 12-month price target of $261.50, including firms like Needham, UBS, and Morgan Stanley giving ratings ranging from "Strong Buy" to "Neutral" on Yahoo Finance.
Despite a decline of 9.7% from its 52-week high of $271.91, BR stock has been trading above its 200-day moving averages since last year. Broadridge operates in two segments: Investor Communication Solutions and Global Technology & Operations. The company provides services such as regulatory and shareholder communications, front-to-back securities processing, and data-driven solutions.
Broadridge's management provided upbeat fiscal 2026 guidance, targeting 5% - 7% recurring revenue growth and 8% - 12% adjusted EPS growth. Yet, analysts remain cautious on BR, with a consensus rating of "Hold" from nine analysts in coverage. The nine analysts currently covering Broadridge Financial Solutions, Inc. from a valuation perspective are not explicitly listed in the available search results on Yahoo Finance.
Read also:
- Industrial robots in China are being installed at a faster rate than in both the United States and the European Union, as the global market for these robots faces a downturn.
- Hyundai N affirms transition to hybrid performance-centric models, initiating with Tucson N
- EAFO Research Uncovers Crucial Elements in Electric Vehicle Adoption within the EU
- Stock markets in India anticipated a moderate opening, influenced by mixed signals from global markets.
