SEI Investments (SEIC) Earnings Date & Reports

Key Takeaways

• Revenue rose 14.4% year over year to $662.0 million, slightly ahead of the consensus estimate of roughly $658.6 million.
• Adjusted (non-GAAP) earnings per share (EPS) came in at $1.64, about 3.8% above the $1.58 analysts expected and up 24% from the prior-year period.
• Reported (GAAP) EPS was $1.38, held back by a $33 million charge tied to terminating the planned acquisition of NSC.
• Net sales events reached $46.8 million, pushing year-to-date sales to $157 million — already above SEI's prior full-year record.
• Assets under management (AUM) grew roughly 13% year over year to about $612.5 billion, though the figure came in slightly below estimates.
• The board approved an $800 million increase to its stock repurchase program, lifting the available authorization to approximately $925.6 million.

Earnings Context and Why It Matters

SEI Investments Company (SEIC) reports third-quarter 2026 results at a pivotal moment for the Oaks, Pennsylvania-based asset management and financial technology provider. The company entered the quarter on strong momentum, having beaten estimates on both revenue and earnings per share in the second quarter. Investors are watching closely whether SEI can sustain operating margins above 30% — a level it reached earlier in 2026 for the first time in more than a decade — while continuing to convert record sales into durable revenue growth. With several recent analyst upgrades and rising price targets heading into the release, this report serves as a key test of whether the company's enterprise transformation strategy and growing alternatives business can keep delivering on both top-line expansion and margin discipline.

Reported Results

SEI reported third-quarter revenue of $662.0 million, up 14.4% from $578.5 million in the same period a year earlier and slightly above the consensus estimate of roughly $658.6 million. Adjusted earnings per share (EPS) — a non-GAAP (non-Generally Accepted Accounting Principles) measure that excludes certain one-time items — came in at $1.64, up 24% year over year and about 3.8% ahead of the $1.58 analysts had projected.

On a reported, or GAAP (Generally Accepted Accounting Principles), basis, diluted EPS was $1.38, up 6% from $1.30 a year ago. The gap between the adjusted and reported figures primarily reflects a $33 million "other expense" charge associated with terminating SEI's planned acquisition of NSC. Income from operations rose 24% year over year to $198.0 million, while adjusted operating income increased 25% to $208.5 million. The adjusted operating margin expanded 260 basis points to 31.5%.

Assets under management (AUM) grew about 13% year over year to roughly $612.5 billion, although the total landed modestly below the approximately $616 billion analysts had modeled. Net sales events of $46.8 million, up 53% year over year, brought year-to-date sales events to $157 million — already exceeding SEI's prior full-year record. CEO Ryan Hicke said the results "reinforce our confidence in the strategy and operating model we have put in place," citing broad-based growth and deeper client relationships.

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Market Reaction and Investor Sentiment

Heading into the report, sentiment around SEI was broadly positive. Eight of nine analysts rated the stock a Buy, with a mean price target implying roughly 10% upside, and recent actions from Piper Sandler, Wells Fargo, and William Blair reflected growing conviction in the company's sales momentum and margin expansion potential. The stock remained relatively flat immediately following the release, trading near $108, suggesting investors weighed the revenue and adjusted-EPS beats against a slight AUM miss and the one-time NSC-related charge that pressured reported earnings. The sequential dip in adjusted EPS — down about 1% from the prior quarter — was attributed by management to lower investment gains and a higher incentive compensation accrual, factors that did not appear to dampen the broader growth narrative.

Forward Outlook and Key Factors to Monitor

The most important question for investors is whether SEI can hold its operating margin near the 30%-plus level it has established this year. Management's commentary points to improved expense management, automation, and operating leverage from recent mandate wins as the main drivers, and analysts increasingly view this range as a sustainable run-rate rather than a temporary peak.

Sales conversion will be another key factor. Management has highlighted several large mandate wins that are still onboarding, with meaningful revenue expected to begin flowing through in 2027. The stickiness of investment management solutions relationships — particularly in fund administration for alternative asset managers — provides visibility, and SEI's positioning in alternatives, including retirement and retail alternative investment solutions, is emerging as a long-term growth lever.

Investors should also monitor expense trends and the incentive compensation accrual, which weighed on sequential adjusted EPS. The company's capital-return strategy, reinforced by the expanded buyback authorization, and any further updates on the terminated NSC acquisition are additional items worth watching in the quarters ahead.

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