Broadridge Financial Solutions' stock plummeted 5.01% during intraday trading on Thursday, as investors reacted to the company's third-quarter fiscal 2026 results.
While the financial technology firm reported better-than-expected quarterly earnings, with revenue rising 8% to $1.95 billion and adjusted EPS of $2.72 beating the $2.60 estimate, several concerning metrics emerged. The company reported a 19% decline in closed sales to $58 million and narrowed its operating margin by 0.6 percentage points to 18.4%.
Most significantly, Broadridge lowered its full-year FY26 closed sales outlook to $240-$290 million from the previous guidance of $290-$330 million. This reduction in forward sales guidance appears to have overshadowed the positive quarterly results, leading to the stock's sharp decline during the trading session.