Summary
SS&C Technologies posted a stronger fiscal 2026 second quarter. Revenue for the three months ended June 30, 2026 was $1,695.7 million, up 10.3% from the prior-year quarter. Gross profit rose 11.0% to $818.3 million, and gross margin edged up to 48.3% from 48.0%. Operating income climbed 21.1% to $417.1 million, lifting operating margin to 24.6% from 22.4%. Net income attributable to the company reached $234.8 million, up 29.9%, and diluted earnings per share was $0.97, up 34.7% from $0.72. For the six months ended June 30, 2026, revenue of $3,342.8 million was up 9.6%.
Adjusted results tracked the same direction. Adjusted revenue was $1,696.9 million, up 10.3%, and adjusted diluted earnings per share was $1.76, up 18.1%. Adjusted consolidated EBITDA was a record $670.7 million, up 11.7%, at a 39.5% margin. Organic growth accelerated to 7.6% from 5.0% in the first quarter. Management credited SS&C GlobeOp fund administration, Wealth and Investment Technology and Global Investor and Distribution Solutions. Those businesses grew organically 9.0%, 9.8% and 8.9%. Intralinks grew 7.4%. Intelligent Automation Analytics slipped 1.0% and Healthcare fell 3.1%.
Cash generation held up. Net cash provided by operating activities was $716.4 million for the six months ended June 30, 2026, up 11.1%. Operating cash flow in the quarter was $416.7 million, up 11.7% from the prior-year quarter. Capital expenditures fell to $13.3 million in the quarter, down 41.9%. Deferred revenue was $486.4 million, essentially flat versus the prior-year quarter, and remaining performance obligations rose 3.8% to $1.02 billion. Net leverage stood at 2.75 times consolidated EBITDA and secured net leverage at 1.70 times. The company returned $499.2 million to shareholders in the quarter through 6.4 million shares repurchased for $435.2 million and $64.0 million of common stock dividends. Year to date it returned 100% of allocated capital. Alternative assets under administration rose $593 billion over two years.
Third quarter 2026 guidance calls for adjusted revenue of $1,657 million to $1,697 million and adjusted diluted earnings per share of $1.73 to $1.79. Full-year 2026 guidance points to adjusted revenue of $6,672 million to $6,832 million and adjusted diluted earnings per share of $6.93 to $7.25. Full-year cash from operating activities is guided to $1,717 million to $1,817 million. Capital expenditures are guided to 4.4% to 4.8% of revenue, and the effective income tax rate to 21.5% to 23.5%. Interest expense is guided to $103 million to $105 million for the third quarter and $406 million to $416 million for the full year, with diluted shares of 237.6 million to 240.6 million and 241.0 million to 244.0 million, respectively. The company does not reconcile adjusted revenue and adjusted net income guidance to comparable GAAP measures, citing the unreasonable efforts exception.
The disclosed risk list is long. It covers the state of the economy and the financial services industry, client consolidation, revenue swings tied to securities market activity, concentration in asset management, competition, cyber-attacks, third-party providers, foreign operations, privacy, evolving regulation, litigation and substantial indebtedness. Retention and renewal performance stay on the watch list. Management described robust renewal performance and healthy retention in the quarter, yet Intelligent Automation Analytics and Healthcare both shrank, a drag on the consolidated organic rate if those trends persist. The MD&A also flags interest rate moves, inflation, capital markets volatility, global trade issues and geopolitical tensions as factors outside management's control. Even so, the 7.6% organic growth was a step up from the first quarter and gives the full-year plan a firmer base.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $1.70B | $1.65B | +3.0% | $1.54B | +10.3% |
| Gross profit | $818.3M | $801.8M | +2.1% | $736.9M | +11.0% |
| Gross margin | 48.3% | 48.7% | -0.4 pp | 48.0% | +0.3 pp |
| Research & development | $132.3M | $134.6M | -1.7% | $128.1M | +3.3% |
| Sales & marketing | $160.5M | $151.7M | +5.8% | $152.4M | +5.3% |
| General & administrative | $108.4M | $117.3M | -7.6% | $111.9M | -3.1% |
| Total operating expenses | $401.2M | $403.6M | -0.6% | $392.4M | +2.2% |
| Operating income (loss) | $417.1M | $398.2M | +4.7% | $344.5M | +21.1% |
| Operating margin | 24.6% | 24.2% | +0.4 pp | 22.4% | +2.2 pp |
| Net income (loss) | $235.3M | $226.3M | +4.0% | $181.1M | +29.9% |
| Net margin | 13.9% | 13.7% | +0.1 pp | 11.8% | +2.1 pp |
| Diluted EPS | $0.97 | $0.91 | +$0.06 | $0.72 | +$0.25 |
Risks
The amended senior secured credit facility contains financial maintenance covenants, including a maximum consolidated net secured leverage ratio, and negative covenants that limit dividends, investments, acquisitions, and incurring debt. Any breach could result in an event of default, acceleration, and a material adverse effect on results, financial position, and cash flows. The consolidated net secured leverage ratio was 1.70 as of June 30, 2026.
MD&A states ongoing macroeconomic conditions such as changes in interest rates and inflation, capital markets volatility, global trade issues, geopolitical tensions, and foreign currency exchange rate fluctuations could have material negative effects on business and results, and are outside the company's control.
Net interest expense increased for the three and six months ended June 30, 2026 compared to the prior year periods primarily due to higher debt balances partially offset by lower interest rates, exposing results to changes in borrowing costs and debt levels.
The effective tax rate increased for the three and six months ended June 30, 2026 compared to the prior year periods, primarily due to a decrease in recognition of windfall tax benefits from stock awards and a change in the composition of income from foreign and domestic jurisdictions. Future changes in income mix, OECD Pillar Two enactments, or tax laws could impact the periodic effective tax rate.
SaaS KPIs
All quarters →Adjusted Operating Income Margin
Adjusted Consolidated EBITDA Margin
Adjusted Revenue
Adjusted Organic Revenue Growth
Adjusted Consolidated EBITDA
Adjusted Diluted EPS
Adjusted Operating Income
Summary, forecast, risks and KPIs are extracted from SS&C Technologies Holdings Inc's SEC filings for Q2 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.