SS&C Technologies adjusted EPS rises 14.8% to $1.78 on 7.8% revenue growth

SS&C Technologies Holdings, Inc. (SSNC) reported third-quarter GAAP revenue of $1,690.0 million, up 7.8% from $1,568.0 million a year earlier, the company said in a filing on Thursday.

GAAP diluted earnings per share were $0.83, unchanged from a year earlier. Adjusted diluted earnings per share rose 14.8% to $1.78 from $1.55.

Here's how the company did:

• Revenue: $1,690.0 million vs. $1,568.0 million a year earlier
• Adjusted revenue: $1,691.1 million vs. $1,569.0 million a year earlier
• GAAP diluted EPS: $0.83 vs. $0.83 a year earlier
• Adjusted diluted EPS: $1.78 vs. $1.55 a year earlier
• Adjusted consolidated EBITDA: $674.8 million vs. $619.0 million a year earlier

Adjusted organic revenue growth, which excludes currency effects and acquisitions, was 5.2% in the quarter, the company said.

GAAP operating income rose 11.9% to $409.3 million from $365.7 million. The GAAP operating margin was 24.2%, against 23.3%.

Adjusted operating income was $657.6 million, up 9.1% from $602.5 million.

GAAP net income attributable to SS&C common stockholders fell 5.3% to $198.9 million from $210.0 million.

Adjusted consolidated EBITDA, or earnings before interest, taxes, depreciation and amortization as adjusted under the company's credit agreement, was $674.8 million, up 9.0%. The adjusted margin was 39.9%, up from 39.5%.

Nine-month results

For the nine months ended September 30, revenue was $5,032.8 million, up 9.0% from $4,618.7 million.

GAAP diluted earnings per share were $2.71, up 13.4% from $2.39. Adjusted diluted earnings per share were $5.23, up 15.7% from $4.52.

Net cash from operating activities was $1,216.3 million, up 10.4% from $1,101.3 million.

“SS&C delivered another quarter of strong results, with Q3 organic revenue growth of 5.2%, record adjusted consolidated EBITDA of $674.8 million, and margins of 39.9%, keeping us on track to achieve our full-year goals,” said Chairman and Chief Executive Officer Bill Stone.

Stone said it was clear at the company's September SS&C Deliver conference, attended by over 1,000 financial services and healthcare leaders, that “holistic transformation of our clients' operating models is a top priority.”

Segment growth

Here's how other SS&C segments did during the quarter, measured by adjusted organic growth:

• GlobeOp: up 9.0%
• GIDS and related: up 6.3%
• Wealth and Investment Technologies: up 1.9%
• Intralinks: up 6.3%
• Intelligent Automation and Analytics: down 4.5%
• Healthcare: up 8.5%

The company recorded $13.8 million in facilities and workforce restructuring charges in the quarter, up from $12.0 million a year earlier.

Guidance

For the fourth quarter, SS&C expects adjusted revenue of $1,700 million to $1,740 million, adjusted net income of $454 million to $470 million, and adjusted diluted earnings per share of $1.88 to $1.94.

For full-year 2026, the company now expects adjusted revenue of $6,736 million to $6,776 million, against the range of $6,672 million to $6,832 million it gave in July. Adjusted diluted earnings per share are expected at $7.11 to $7.17, against $6.93 to $7.25 in July.

Adjusted net income is now expected at $1,726 million to $1,742 million, against $1,670 million to $1,770 million in July. Interest expense is expected at $417 million to $419 million, against $406 million to $416 million. Diluted shares are expected at 242.7 million to 242.9 million, against 241.0 million to 244.0 million.

The company's full-year outlook for cash from operating activities of $1,717 million to $1,817 million and capital expenditures of 4.4% to 4.8% of revenue is unchanged, as is its organic growth midpoint of 5.5%.

SS&C does not reconcile guidance for adjusted revenue and adjusted net income to GAAP measures. It said acquisition transactions, currency changes and other adjustments are difficult to predict, and that they could affect its fourth-quarter and full-year GAAP results.

Capital returns and debt

In the quarter, SS&C repurchased 1.9 million shares for $154.8 million, at an average price of $79.95 per share. It also paid $70.5 million in common stock dividends, returning $225.3 million to shareholders in total.

In August, the company raised its common stock dividend to $1.20 a share annually, an 11.1% increase.

SS&C paid down $130.0 million of debt in the quarter, bringing its net leverage ratio to 2.63 times consolidated EBITDA as of September 30. Its net secured leverage ratio was 1.59 times.

At quarter end, gross debt was $7,483.5 million and cash and cash equivalents were $525.4 million.

The filing shows $2.0 billion of senior notes classified as current because they mature on September 30, 2027. The company said it is actively addressing the maturity and believes refinancing is probable during the fourth quarter of 2026.