SS&C Technologies Q3 Earnings Call Highlights

Key Points

• Strong Q3 performance: SS&C Technologies reported adjusted revenue of $1.691 billion, up 7.8% year over year, while adjusted EPS rose 14.8% to $1.78. Adjusted EBITDA increased 9% to a record $674.8 million, with margins expanding to 39.9%.
• 2026 outlook raised: The company increased its full-year revenue guidance to $6.736 billion–$6.776 billion and adjusted EPS guidance to $7.11–$7.17, reflecting expected organic growth of 5.5% at the midpoint and 10% EBITDA growth.
• AI and capital allocation remain priorities: SS&C is expanding AI-enabled products, automation and tokenization capabilities while returning capital through $225 million in quarterly buybacks and dividends. Management also plans to refinance $2 billion of 2027 debt and continues to evaluate disciplined acquisitions.

SS&C Technologies NASDAQ: SSNC reported higher third-quarter revenue, earnings and margins, while raising several elements of its full-year outlook as the company cited continued demand for outsourcing, technology and AI-enabled services.

For the third quarter of 2026, SS&C posted adjusted revenue of $1.691 billion, up 7.8% from a year earlier. Adjusted organic revenue growth on a constant-currency basis was 5.2%. Adjusted diluted earnings per share increased 14.8% to $1.78.

Adjusted consolidated EBITDA reached a record $674.8 million, up 9%, while the adjusted EBITDA margin expanded 40 basis points to 39.9%. On a GAAP basis, the company reported revenue of $1.69 billion, net income of $199 million and diluted earnings per share of $0.83.

Cash Flow, Capital Returns and Balance Sheet

Chairman and Chief Executive Officer Bill Stone said the company generated $1.216 billion in cash from operating activities during the first nine months of 2026, a 10.4% year-over-year increase.

SS&C returned $225 million to shareholders during the quarter, including $154.8 million spent repurchasing 1.9 million shares and $70.5 million in dividends. In August, the company increased its annual common-stock dividend by 11.1% to $1.20 per share.

Chief Financial Officer Brian Schell said the company ended the quarter with $525 million in cash and cash equivalents, $7.5 billion in gross debt and net debt of $7 billion. Based on last-12-month consolidated EBITDA of $2.7 billion, SS&C’s net leverage ratio was 2.63 times.

The company is refinancing $2 billion of notes due in 2027, Schell said, and expects to provide an update once the process is complete.

Stone said SS&C sees share repurchases as particularly attractive at current valuation levels, while also continuing to pay down debt, raise its dividend and evaluate acquisitions. He said the company does not believe it must choose among those priorities because of its recurring cash flow.

Full-Year Outlook Raised

SS&C increased several full-year 2026 expectations. The company now expects:

• Revenue of $6.736 billion to $6.776 billion.
• Organic revenue growth of 5.5% at the midpoint.
• Adjusted net income of $1.726 billion to $1.742 billion.
• Adjusted diluted EPS of $7.11 to $7.17, representing about 16.3% growth at the midpoint.
• EBITDA growth of 10% and 90 basis points of EBITDA-margin expansion for the full year.
• An exit rate of 41% EBITDA margins at year-end.

For the fourth quarter, the company forecast revenue of $1.70 billion to $1.74 billion, with 4% organic revenue growth at the midpoint. SS&C expects adjusted net income of $454 million to $470 million and adjusted diluted EPS of $1.88 to $1.94.

Schell said the fourth-quarter organic-growth outlook reflects quarter-over-quarter timing, including comparisons against a strong fourth quarter in 2025. Stone added that large contracts can materially affect reported organic growth once negotiations are completed, signed and implemented. He said SS&C’s pipeline includes large potential mandates, with contracts potentially worth $25 million, $50 million or more.

AI, Automation and Tokenization Initiatives

Management highlighted the company’s AI-related products and internal automation efforts. At its SS&C Deliver client conference, the company introduced next-generation offerings built on its AI Gateway governance platform and WorkHQ agentic orchestration platform.

Stone said the platforms are intended to help customers deploy AI agents in complex, regulated workflows with governance embedded in the process. Through SS&C’s internal “Customer Zero” program, the company has developed more than 900 agentic workflows, 200 AI agents and more than 60 digital workers in the WorkHQ development environment.

President and Chief Operating Officer Rahul Kanwar said the company’s Intelligent Automation & Analytics business, which includes Blue Prism, plays a central role in SS&C’s AI strategy. While that segment’s organic growth declined 4.5% during the quarter, Kanwar said product development and new offerings can create a lag in reported segment results. He added that automation capabilities also support growth across other SS&C businesses rather than being reflected solely within the segment.

Stone said customers can use robotic process automation alongside agentic AI, allowing them to transition at their own pace rather than replacing existing infrastructure all at once.

The company also discussed its tokenization strategy, including its Calastone acquisition. Stone said Calastone, which operates a network of roughly 7,000 funds, is growing at a double-digit rate. Kanwar said the tokenization capability provides another differentiator as customers range from fully embracing digital-asset infrastructure to experimenting with potential use cases.

Outsourcing Demand and M&A Focus

Stone said SS&C continues to see demand from large financial institutions seeking partners that can modernize operating models, manage complex processing and maintain regulatory capabilities. The company cited its global technology and fund-administration infrastructure as competitive advantages.

Kanwar said the company’s ownership of the full technology stack supporting fund administration enables it to deploy AI and new functionality more quickly, helping its win rate. Stone noted that SS&C serves many large global macro funds and continues to invest in support for clients expanding into private markets and regions such as Abu Dhabi.

Regarding acquisitions, Stone said the opportunity set is expanding as private-equity firms consider exits, though fintech and financial-services technology assets continue to command high valuations. He said SS&C remains interested in areas including fund administration and could consider larger deals, but will remain disciplined on price.

“We don’t dabble,” Stone said, pointing to the company’s 2022 Blue Prism acquisition and its purchase of Calastone last year as examples of investments intended to establish scalable capabilities.

About SS&C Technologies (NASDAQ:SSNC)

SS&C Technologies Holdings, Inc is a global provider of software and technology-enabled services for the financial services and healthcare industries. The company helps investment firms, banks, insurers, corporations and healthcare organizations manage operations, data, reporting and regulatory requirements through integrated technology platforms and outsourced services.

Its financial services offerings support areas including investment and fund accounting, portfolio and wealth management, trading and risk management, alternative investments, private markets, transfer agency, fund administration and investor communications.

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