SEI Investments third-quarter earnings per share rises 6% as revenue grows 14% to $662.0 million

SEI Investments Company (SEIC) reported third-quarter 2026 revenue of $662.0 million, up 14% from a year earlier, and operating income of $198.0 million, up 24%. The company said in a filing that the results were released Wednesday.

Diluted earnings per share rose 6% to $1.38. Adjusted diluted earnings per share, a non-GAAP measure, meaning one calculated outside U.S. generally accepted accounting principles, rose 24% to $1.64.

Here's how the company did:

• Revenue: $662.0 million vs. $578.5 million a year earlier
• Operating income: $198.0 million vs. $160.0 million a year earlier
• Operating margin: 30% vs. 28% a year earlier
• Net income attributable to SEI Investments Company: $168.3 million vs. $164.2 million a year earlier
• Diluted earnings per share: $1.38 vs. $1.30 a year earlier
• Adjusted diluted earnings per share: $1.64 vs. $1.32 a year earlier

Adjusted operating income rose 25% to $208.5 million, and the adjusted operating margin widened to 31% from 29%. Adjusted measures exclude acquisition-related intangible amortization, and adjusted net income also excludes the Stratos charge, which the company said helps compare core results across periods.

Against the second quarter, the company's earnings presentation shows revenue up 3.2%. It said adjusted EPS declined $0.02 sequentially, driven by lower investment gains and a higher incentive compensation accrual.

For the first nine months of 2026, revenue rose 14% to $1,925.8 million from $1,689.5 million a year earlier. Adjusted diluted earnings per share rose 27% to $4.73 from $3.71, while diluted earnings per share rose 3% to $4.37 from $4.25.

“SEI’s third-quarter results reinforce our confidence in the strategy and operating model we have put in place,” CEO Ryan Hicke said. “Our growth is broad-based, our client relationships are becoming deeper and more strategic, and our year-to-date sales results have already surpassed the highest full-year total in SEI’s history.”

Segment results

Investment Advisors revenue rose 26% to $185.4 million, and operating profit rose 11% to $75.7 million. The company said Stratos contributed $23.3 million of revenue and $4.4 million of operating profit, including $7.3 million of acquired intangible amortization.

Private Banks revenue rose 11% to $160.4 million, and operating profit rose 38% to $32.2 million. The company said the results demonstrated strong operating leverage as the business continues to grow, including increased adoption of professional services.

Investment Managers revenue rose 14% to $235.8 million, and operating profit rose 14% to $92.3 million. Absent the elevated incentive compensation accrual, the company said, operating profit would have increased 17%.

Institutional Investors revenue fell 2% to $70.6 million, and operating profit fell 3% to $32.8 million, which the company tied to prior client outflows.

Charges and sales

The company recorded a $32.5 million one-time charge tied to a termination agreement with Stratos to purchase a Mexican subsidiary called NSC. The charge sits in other expense, below operating income, and reduced reported net income.

Third-quarter operating income also included $6.4 million of additional incentive compensation expense, which the company linked to the strength of year-to-date performance and its outlook for the rest of the year.

Net sales events totaled $46.8 million in the third quarter, the second-highest quarterly level in SEI history, bringing year-to-date net sales events to $157.4 million. Investment Managers contributed $32.0 million, Private Banks $12.6 million, and Investment Advisors $2.4 million, while Institutional Investors recorded negative $2.3 million.

Ending assets under management decreased 0.1% to $606.4 billion from the second quarter. Assets under administration, assets on platform and assets under advisement rose 4% during the quarter, the company said.

Share buyback

The board approved an additional $800.0 million for the stock repurchase program on Tuesday, raising the available authorization to approximately $925.6 million.

During the quarter, SEI repurchased 2.0 million shares of common stock for $215.1 million at an average price of $105.24 per share. It ended the quarter with $399.8 million of cash.

The company's presentation said its current outlook supports a similar level of repurchases in the fourth quarter, and that the additional authorization provides capacity to remain active well into 2027.

The company scheduled a conference call for 5 p.m. Eastern time on Wednesday, with a live webcast on its investor relations website.