Broadridge Financial Solutions, Inc. stock research
FY2026 Q2
Broadridge Financial Solutions (BR) Gross Margin — Quarter Ended Dec 31, 2025
Revenue increased while cost of revenue remained stable, leading to higher gross profit and an improved gross margin. The relationship shows that gross profit grew faster than revenue due to the unchanged cost base.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q2
Revenue increased while cost of revenue remained stable, leading to higher gross profit and an improved gross margin. The relationship shows that gross profit grew faster than revenue due to the unchanged cost base.
- The stable cost of revenue from the prior quarter was the strongest observable factor, as it allowed revenue growth to directly enhance gross profit and margin.
- Compared to the prior quarter, gross margin improved. Compared to the same quarter last year, gross margin weakened as cost of revenue increased more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.6%
Gross profit
$473.6M
Revenue
$1.7B
Cost of revenue
$1.2B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
-0.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $1.8B | $575.8M | $1.2B | 31.8% |
| Jun 30, 2025 | $2.1B | $769.8M | $1.3B | 37.3% |
| Sep 30, 2025 | $1.6B | $422.6M | $1.2B | 26.6% |
| Dec 31, 2025 | $1.7B | $473.6M | $1.2B | 27.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+1.0 pts
Year-over-year change
Dec 31, 2024
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The stable cost of revenue from the prior quarter was the strongest observable factor, as it allowed revenue growth to directly enhance gross profit and margin.
Compared to the prior quarter, gross margin improved. Compared to the same quarter last year, gross margin weakened as cost of revenue increased more than revenue.
Monitor whether cost of revenue growth continues to lag revenue growth sequentially or if it reverts to the year-over-year pattern of higher cost growth.