Puneet Jain

Ashima guided fiscal '27 growth in line with fiscal '26 (5% to 7% organic plus about a point from acquisitions), driven by continued position growth and $470M backlog conversion.

Tim said the $25M is largely already achieved and is being reinvested into the roadmap (speed to market, onboarding), framing AI as both discrete products and a broader agentic operating system.

Tim cited dinner with large client tech head who distinguished Broadridge's deeply embedded network from other SaaS vendors. AI not causing delays. Platform story resonating as build-and-buy where clients leverage Broadridge's agentic layer. Ashima added closed sales delta implies only 10-30bps impact on next year revenue.

Tim said no pricing pressure from AI. AI helping innovate and develop products faster. Managed services using AI partnership model: guarantee savings, share upside. This formula has been powerful with clients, increasing demand and driving good managed services sales.

Ashima listed puts and takes: iJoin/Signal acquisitions adding <50bps, 2 more Fed rate cuts baked in as headwind, growing confidence in position growth, revenue from sales tracking well, digital asset revenue small upside. All supports higher end of 5-7%.

Tim clarified Super Validator role is separate from DLR platform. Invited by Digital Asset Holdings due to closeness. Paid in coins per Canton Network governing document, similar to Ethereum or Bitcoin validator economics. Investment to become Super Validator was frankly rather low.

Ashima confirmed reported margins 20-21% roughly flat, with postage rate increase and 3 Fed rate cuts creating headwinds. Core margin expansion over 50bps excluding distribution and float. Tim added interest is neutralized at company level.

Ashima said backlog is $430M at 10% of recurring revenue, split roughly 60/40 ICS/GTO. Wealth sales from Q4 will convert more around FY27. ICS sales convert faster. No overall rule change, just product mix.

Ashima quantified impact: $40M at midpoint, <1% of recurring revenue, with 12-24 month conversion cycles meaning fractional near-term impact. Tim noted shorter-term simpler deals likely less affected.

Tim covered opportunities in digital assets disclosure, pass-through voting expansion, data-driven voting alternative to proxy advisors, and digitization. Broadly positive regulatory outlook.

Tim outlined balanced capital allocation: prioritize internal investment within free cash flow, grow dividend, then balance M&A vs. buybacks. Many assets coming to market but clearing prices unclear.

Tim said too early to gauge impact but clients relieved about potential Basel III slowdown. Deregulation could help rebalance public vs. private markets over time.

Ashima explained Q1 mix of smaller issuers depressed growth; issuer-level testing shows mid to high single-digit growth for both first half and more material second half.

Tim said Broadridge did not see implementation delays others reported, likely because their solutions address regulatory/cost needs. Pipeline multiplier as strong as prior year.

Fejes credited FS strength to combining domain knowledge with AI-native capabilities and EPAM IP (MF Lens) for legacy modernization, framing it as a precursor of AI-foundation demand.

Fejes was direct that the gap is in business development, not delivery, arguing EMEA proves the product resonates when the go-to-market motion is right.

Incoming CEO confirmed AI adoption is broad-based across all verticals with no significant differences. Each vertical has its own front-runners. Vertical performance attributed more to macro factors than AI adoption levels.

Incoming CEO confirmed experimenting with subscription models through EPAM platforms like DIAL. Not yet settled. Continuing to adapt to client needs while capturing AI benefits.

CFO clarified no billing rate improvement assumed. Q2-to-Q3 natural seasonal lift from more bill days. Midpoint assumes seasonal Q3-to-Q4 softness.