stockrowLatest quarter
SS&C reported Q2 FY2026 revenue of $1.7 billion, up from $1.5 billion a year earlier. For the later quarter ended September 30, the company reported adjusted EPS of $1.78 against a consensus of $1.77; revenue of $1.7 billion matched the consensus at the stated precision.
For Q2, SS&C’s filing attributed revenue growth primarily to organic gains in GlobeOp fund administration, Wealth and Investment Technology, and Global Investor and Distribution Solutions. The filing said acquisitions and currency translation also contributed, while technology-enabled services revenue increased 11.1%.
SS&C reported Q2 diluted EPS of $0.97, compared with $0.72 a year earlier. Operating margin rose to 24.6% from 22.4%, and gross margin was 48.3%, compared with 48.0%. The filing said organic operating expenses fell primarily because of lower personnel costs. SS&C reported free cash flow of $341.6 million, up from $297.2 million a year earlier.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.7 billion | $1.5 billion | 10.3% |
| Diluted EPS | $0.97 | $0.72 | 34.7% |
| Gross margin | 48.3% | 48.0% | 0.3 percentage points |
| Operating margin | 24.6% | 22.4% | 2.2 percentage points |
| Free cash flow | $341.6 million | $297.2 million | 14.9% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.78 | $1.77 | Beat by 0.56% |
| Revenue | $1.7 billion | $1.7 billion | In line |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
On SS&C’s first-quarter earnings call, CEO William Stone said Global Investor and Distribution Solutions, or GIDS, and GlobeOp drove adjusted organic revenue growth. He also said Intralinks was seeing increasing adoption of its AI-enabled DealCentre platform.
In the Q&A, Stone discussed GIDS’s work to satisfy clients and gain market share in Australia, as well as opportunities in North America and Europe. President and COO Rahul Kanwar said a market recovery was beginning to appear in results, while investment in data-room services and AI-enabled modules had helped SS&C gain market share.
Stone said SS&C was using AI to speed software development and implementations and improve customer experience. He emphasized governance, saying: “AI is not just a gas pedal—somebody better have a brake.” Kanwar said the company was seeing an effect on software-development speed and described an opportunity to turn SS&C’s processing knowledge into skills for AI agents.
On investment and margins, Stone said SS&C had put money into infrastructure and its ability to deliver services and products. He said the company would not take away from research and development or other initiatives. Stone also said SS&C had deployed close to 4 thousand digital workers and estimated they had saved a couple hundred million dollars a year, while noting the cost of computing and large data infrastructure.
Looking ahead from the first-quarter call, CFO Brian Schell said SS&C would manage expenses through variable-cost controls, productivity and technology, while investing in areas including research, sales and marketing. Stone said the company was prioritizing share repurchases in the absence of accretive acquisitions.
Guidance
SS&C now expects FY2026 adjusted diluted EPS of $7.11 to $7.17. On the first-quarter call, CFO Brian Schell had given a range of $6.74 to $7.06.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Tax rate | FY2026 | 21.5%–23.5% | — | New |
| Tax rate | Q4 FY2026 | 21.5%–23.5% | — | New |
| Capex growth, Percent of Revenue | FY2026 | 4.40%–4.80% | — | New |
| EPS, non-GAAP | FY2026 | $7.11–$7.17 | — | New |
| EPS, non-GAAP | Q4 FY2026 | $1.88–$1.94 | — | New |