SS&C Tech | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 1.696 B

Revenue: As of FY2026 Q2, the actual value is USD 1.696 B, beating the estimate of USD 1.664 B.

EPS: As of FY2026 Q2, the actual value is USD 0.97, beating the estimate of USD 0.9615.

EBIT: As of FY2026 Q2, the actual value is USD 421.2 M.

Segment Revenue

For the three months ended June 30, 2026, Technology-enabled services revenue was $1,408.2 million, compared to $1,267.7 million in 2025, while License, maintenance and related revenue was $287.5 million, up from $269.1 million in 2025. For the six months ended June 30, 2026, Technology-enabled services revenue was $2,815.5 million, compared to $2,537.6 million in 2025. License, maintenance and related revenue for the six-month period was $527.3 million, up from $513.1 million in 2025.

Operational Metrics

Net Income

GAAP net income for Q2 2026 was $234.8 million, a 29.9% increase from $180.8 million in Q2 2025. For the six months ended June 30, 2026, GAAP net income was $460.9 million, a 17.0% increase from $393.8 million in 2025.

Operating Income and Margin

GAAP operating income for Q2 2026 was $417.1 million, a 21.1% increase from $344.5 million in Q2 2025, with the GAAP operating income margin improving to 24.6% from 22.4% in Q2 2025. For the six months ended June 30, 2026, GAAP operating income was $815.3 million, a 16.1% increase from $702.4 million in 2025, and the GAAP operating income margin was 24.4%, up from 23.0% in 2025. Adjusted operating income for Q2 2026 was $653.8 million, an increase of 12.0% from $583.5 million in Q2 2025, with an adjusted operating income margin of 38.5%, up from 37.9% in Q2 2025. For the six months ended June 30, 2026, adjusted operating income was $1,287.4 million, an increase of 11.1% from $1,158.8 million in 2025, and the adjusted operating income margin was 38.5%, up from 38.0% in 2025.

Adjusted Consolidated EBITDA

Adjusted consolidated EBITDA for Q2 2026 reached a record $670.7 million, up 11.7% from $600.4 million in Q2 2025. The adjusted consolidated EBITDA margin for Q2 2026 was 39.5%, up from 39.0% in Q2 2025. For the six months ended June 30, 2026, adjusted consolidated EBITDA was $1,321.7 million, up 10.9% from $1,192.3 million in 2025, with a margin of 39.5%, up from 39.1% in 2025.

Operating Costs

Total cost of revenues for Q2 2026 was $877.4 million, compared to $799.9 million in Q2 2025. Total operating expenses for Q2 2026 were $401.2 million, compared to $392.4 million in Q2 2025. For the six months ended June 30, 2026, total cost of revenues was $1,722.7 million, compared to $1,566.7 million in 2025. Total operating expenses were $804.8 million, compared to $781.6 million in 2025.

Organic Revenue Growth

Adjusted organic revenue growth for Q2 2026 was 7.6%. Consolidated organic revenue growth was 7.6% in Q2 2026, compared to 5.0% in Q1 2026. Organic revenue growth rates for specific segments in Q2 2026 included GlobeOp at 9.0%, GIDS and related at 8.9%, Wealth and Investment Technologies at 9.8%, Intralinks at 7.4%, Intelligent Automation & Analytics at -1.0%, and Healthcare at -3.1%.

Cash Flow

Net cash generated from operating activities was $716.4 million for the six months ended June 30, 2026, an 11.1% increase compared to $645.1 million for the same period in 2025. Net cash used in investing activities for the six months ended June 30, 2026, was - $135.0 million, compared to - $148.1 million in 2025. Net cash used in financing activities for the six months ended June 30, 2026, was - $736.1 million, compared to - $987.8 million in 2025. SS&C Technologies Holdings, Inc. ended Q2 2026 with $434.8 million in cash and cash equivalents and $7,613.5 million in gross debt. The consolidated net leverage ratio was 2.75 times consolidated EBITDA, and the net secured leverage ratio was 1.70 times consolidated EBITDA as of June 30, 2026.

Unique Metrics

SS&C Technologies Holdings, Inc. returned $499.2 million to shareholders in Q2 2026, including the repurchase of 6.4 million shares for $435.2 million and $64.0 million in common stock dividends. Alternative Assets Under Administration increased by $593 billion over two years.

Outlook / Guidance

For Q3 2026, SS&C Technologies Holdings, Inc. anticipates adjusted revenue between $1,657 million and $1,697 million, with an organic growth midpoint of 5.0%. Adjusted net income is projected to be between $413 million and $429 million, and adjusted diluted earnings per share are expected to range from $1.73 to $1.79. For the full year 2026, the company forecasts adjusted revenue between $6,672 million and $6,832 million, with an organic growth midpoint of 5.5%, and cash from operating activities guided to be between $1,717 million and $1,817 million, with capital expenditures expected to be 4.4% to 4.8% of revenue.