Service (SCI) Earnings Date & Reports

Key Takeaways

• Service Corporation International (SCI) reported third quarter 2026 adjusted earnings per share (EPS) of $0.97, slightly below the consensus estimate of $0.99.
• Revenue reached approximately $1.11 billion, up about 4% year over year and modestly above the roughly $1.10 billion analysts expected.
• Management issued softer-than-expected guidance, projecting fourth quarter 2026 EPS of $1.10 to $1.20 versus a consensus of $1.33, and full-year 2026 EPS of $3.94 to $4.04 versus a consensus of $4.19.
• Net income attributable to common stockholders rose to roughly $141.3 million from $117.5 million a year earlier, supported by higher pricing and preneed (pre-planned) sales momentum.
• For more context, explore SCI's Major News, Today's Price Move, Price Targets, and Forecast on dedicated pages.
• To discover AI-driven trading ideas across the market, explore Trending AI Robots.

Earnings Context and Why It Matters

Service Corporation International is North America's largest provider of funeral and cemetery services, a business prized for its defensive, demand-stable profile. With funeral volumes largely flat and the cremation mix steadily rising, SCI's earnings growth increasingly depends on pricing discipline, preneed cemetery sales, and capital returns rather than raw service counts. This third quarter report was therefore closely watched as a test of whether those profit levers could keep earnings growing faster than revenue. The result—revenue that beat expectations but adjusted EPS and forward guidance that fell short—highlights the tension between resilient top-line demand and a profit trajectory that investors had already priced at a premium multiple.

Reported Results

For the third quarter ended September 30, 2026, SCI posted total revenue of approximately $1.11 billion, an increase of about 4% from the $1.06 billion recorded in the prior-year period. The top line came in slightly ahead of the consensus estimate of about $1.10 billion.

On the bottom line, adjusted diluted EPS came in at $0.97, two cents below the $0.99 analysts had projected. Net income attributable to common stockholders rose to approximately $141.3 million from $117.5 million a year earlier, with higher pricing and continued preneed sales strength supporting the year-over-year improvement even as results modestly trailed bottom-line expectations.

The most consequential element of the release was guidance. Management forecast fourth quarter 2026 EPS of $1.10 to $1.20, below the consensus of $1.33, and narrowed full-year 2026 adjusted EPS expectations to $3.94 to $4.04, also below the consensus of $4.19. The softer outlook—not the quarterly print itself—was the primary focus of investor attention.

AI Screener

Tickeron's AI Screener is an AI-powered stock and ETF (exchange-traded fund) discovery tool that helps traders and investors filter the market using technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs with customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener is designed to surface trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. For investors tracking names like SCI, it offers a structured way to monitor sector momentum and identify comparable setups as earnings season unfolds.

Market Reaction and Investor Sentiment

Heading into the release, sentiment was cautiously optimistic: analysts had largely held estimates steady, and the stock traded in the upper half of its 52-week range. The mixed result—revenue above forecasts but adjusted EPS slightly light—was overshadowed by guidance that landed clearly below consensus, particularly for the fourth quarter. The gap between management's fourth quarter EPS range of $1.10 to $1.20 and the $1.33 consensus implied a meaningful reset of near-term profit expectations. With SCI trading at a premium valuation relative to peers, the cautious forecast amplified concerns that pricing and preneed growth may not fully offset the margin pressure created by the industry-wide shift toward lower-cost cremation services.

Forward Outlook and Key Factors to Monitor

Investors will focus next on whether SCI can close the gap between its guidance and the market's earlier expectations. The fourth quarter is historically SCI's largest earnings period, driven by seasonal mortality patterns, so its performance will be a key test of the company's revised outlook.

Pricing power remains the central lever. Average revenue per funeral service has been a steady source of growth, and its continuation will be essential to offsetting the drag from a rising cremation rate. Preneed cemetery sales—where customers pre-purchase property and services—remain the genuine growth engine, locking in future revenue and generating recognized income over multiple years.

Finally, capital allocation deserves attention. SCI has leaned on share repurchases and its dividend to boost per-share earnings, and free cash flow generation will determine how much firepower management retains for buybacks, acquisitions, and continued debt reduction. These factors, rather than headline funeral volume, will likely shape how the stock trades in the quarters ahead.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations