third quarter 2026
Filed Oct 21, 2026SEI Reports Third-Quarter 2026 Financial Results
Third-quarter revenue increased 14%, GAAP operating income increased 24%, adjusted diluted EPS increased 24% to $1.64, and adjusted operating margin increased to 31%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 revenuesGAAP | $662,043 | – | 14% |
| Nine months 2026 revenuesGAAP | $1,925,843 | – | 14% |
| Q3 2026 asset management, admin. and distribution feesGAAP | $531.4M | – | – |
| Q3 2026 information processing and software servicing feesGAAP | $130.6M | – | – |
| Q3 2026 total expensesGAAP | $464.0M | – | – |
| Nine months 2026 total expensesGAAP | $1,341,342 | – | – |
| Q3 2026 income from operationsGAAP | $198.0M | – | 24% |
| Nine months 2026 income from operationsGAAP | $584,501 | – | 26% |
| Q3 2026 operating marginGAAP | 30 % | – | 7% |
| Nine months 2026 operating marginGAAP | 30 % | – | 7% |
| Q3 2026 net incomeGAAP | $171.2M | – | – |
| Nine months 2026 net incomeGAAP | $547,574 | – | – |
| Q3 2026 net income attributable to SEI Investments CompanyGAAP | $168.3M | – | 2% |
| Nine months 2026 net income attributable to SEI Investments CompanyGAAP | $538,403 | – | (1)% |
| Q3 2026 diluted earnings per common shareGAAP | $1.38 | – | 6% |
| Nine months 2026 diluted earnings per common shareGAAP | $4.37 | – | 3% |
| Q3 2026 basic earnings per common shareGAAP | $1.42 | – | – |
| Nine months 2026 basic earnings per common shareGAAP | $4.48 | – | – |
| Q3 2026 adjusted income from operationsnon-GAAP | $208.5M | – | 25% |
| Nine months 2026 adjusted income from operationsnon-GAAP | $614,127 | – | 28% |
| Q3 2026 adjusted operating marginnon-GAAP | 31 % | – | 7% |
| Nine months 2026 adjusted operating marginnon-GAAP | 32 % | – | 14% |
| Q3 2026 adjusted net income attributable to SEI Investments Companynon-GAAP | $199,970 | – | – |
| Nine months 2026 adjusted net income attributable to SEI Investments Companynon-GAAP | $583,723 | – | – |
| Q3 2026 adjusted diluted EPSnon-GAAP | $1.64 | – | 24% |
| Nine months 2026 adjusted diluted EPSnon-GAAP | $4.73 | – | 27% |
| Nine months 2026 net cash provided by operating activitiesGAAP | $565,327 | – | – |
| Nine months 2026 net cash used in financing activitiesGAAP | ($512,509) | – | – |
| Cash and cash equivalents at September 30, 2026GAAP | $399.8M | – | – |
| Long-term debt at September 30, 2026GAAP | 30,951 | – | – |
| Current portion of long-term debt at September 30, 2026GAAP | 5,754 | – | – |
| Nine months 2026 dividends declared per common shareGAAP | $0.52 | – | – |
| Ending total assets under management at September 30, 2026other | $606.4B | decreased 0.1% | – |
| Ending total assets at September 30, 2026other | $2,105,780 | – | – |
| Q3 2026 total sales eventsother | $46.79M | – | – |
| Q3 2026 total net recurring sales eventsother | $38.60M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Investment Managers, Q3 2026Prior sales success continued to convert into revenue and demand for outsourcing solutions remained strong. | $235,817 | – | 14% |
| Private Banks, Q3 2026Continued demand across enterprise transformation initiatives, professional services, Data Cloud capabilities, and asset management solutions. | $160,439 | – | 11% |
| Investment Advisors, Q3 2026Benefiting from Stratos and growth in the underlying Advisors business. | $185,378 | – | 26% |
| Institutional Investors, Q3 2026Reflecting prior client outflows. | $70,638 | – | (2)% |
| Investments in New Businesses, Q3 2026No segment-specific revenue driver was provided. | $9,771 | – | 20% |
| Investment Managers, nine months 2026No nine-month segment-specific revenue driver was provided. | $684,213 | – | 15% |
| Private Banks, nine months 2026No nine-month segment-specific revenue driver was provided. | $469,580 | – | 11% |
| Investment Advisors, nine months 2026No nine-month segment-specific revenue driver was provided. | $532,970 | – | 27% |
| Institutional Investors, nine months 2026No nine-month segment-specific revenue driver was provided. | $211,856 | – | 1% |
| Investments in New Businesses, nine months 2026No nine-month segment-specific revenue driver was provided. | $27,224 | – | (34)% |
Capital returns
- SEI repurchased 2.0 million shares of common stock for $215.1 million at an average price of $105.24 per share.
- On October 20, 2026, SEI's Board of Directors approved an increase in the stock repurchase program by an additional $800 million.
- The available authorization under the program increased to approximately $926 million.
- Dividends declared per common share were $0.52 for the nine months ended September 30, 2026.
What drove it
- Third-quarter net sales events totaled $46.8 million, bringing year-to-date net sales events to $157.4 million.
- Investment Managers generated $32.0 million of net sales events, with contributions from both new client wins and expansions with existing clients.
- Private Banks generated $12.6 million of net sales events.
- Stratos contributed $23.3 million of revenue and $4.4 million of operating profit, including $7.3 million of acquired intangible amortization.
- SEI's integrated cash program contributed $20.8 million during the quarter, matching Q3 2025.
- Assets under administration, assets on platform, and assets under advisement increased 4% during the quarter, driven primarily by continued growth in Investment Managers, including funding from recently won mandates and additional client capital deployment.
Concerns
- Third-quarter operating income included $6.4 million of additional incentive compensation expense associated with the strength of year-to-date performance and the current outlook for the remainder of the year.
- Institutional Investors revenue declined 2% and operating profit declined 3%, reflecting prior client outflows.
- Investment Advisors operating margin was 41 % versus 46 % in the prior-year quarter.
- Other expenses included a $32.5 million one-time charge associated with the termination agreement with Stratos to purchase their Mexican based subsidiary, NSC.
- LSV assets declined 1% from Q2 as strong investment performance was offset by $5.3 billion of net outflows.
What to watch
- Conversion of $46.8 million of third-quarter net sales events into annualized recurring revenue.
- Demand for outsourcing services and enterprise transformation initiatives.
- The growth trajectory of assets under administration and the Private Banking business.
- Whether year-end performance supports incentive compensation awards consistent with increased accruals.
- The level of share buy-backs under the approximately $926 million available authorization.
Balance sheet and cash flow
- Cash and cash equivalents were $399,766 at September 30, 2026.
- Cash and cash equivalents held at consolidated variable interest entities were $85,457 at September 30, 2026.
- Total cash and cash equivalents and cash and cash equivalents held at consolidated variable interest entities were $485,223 at September 30, 2026.
- Net cash provided by operating activities was $565,327 for the nine months ended September 30, 2026.
- Net cash used in investing activities was ($32,087) for the nine months ended September 30, 2026.
- Net cash used in financing activities was ($512,509) for the nine months ended September 30, 2026.
- Long-term debt was 30,951 and current portion of long-term debt was 5,754 at September 30, 2026.
Analysis
SEI reported broad-based third-quarter growth. GAAP revenue was $662,043, up 14%, while income from operations was $197,999, up 24%. GAAP operating margin increased to 30 % from 28 %, and diluted earnings per common share increased 6% to $1.38. Adjusted income from operations increased 25% to $208,493, adjusted operating margin reached 31 %, and adjusted diluted EPS increased 24% to $1.64.
The operating result reflects strength across the largest businesses. Investment Managers generated revenue of $235,817, up 14%, with operating profit also up 14%. Private Banks revenue increased 11% to $160,439 and operating profit increased 38% to $32,164. Investment Advisors delivered revenue growth of 26% to $185,378, supported by Stratos and growth in the underlying Advisors business, although its operating profit increased 11% and its operating margin was 41 % versus 46 %.
Sales activity remained a central demand indicator. Total sales events were $46,794 in the third quarter, while total net recurring sales events were $38,602. Investment Managers contributed $32,012 of total sales events and Private Banks contributed $10,112. Institutional Investors remained the weak point, with revenue of $70,638, down 2%, and operating profit of $32,837, down 3%, reflecting prior client outflows.
Asset levels were broadly stable in the quarter. Ending total assets under management were $606,352, compared with $606,725 at June 30, 2026, and the company stated that ending assets under management decreased 0.1% as market values and net flows were little changed. LSV assets declined 1% from Q2 as strong investment performance was offset by $5.3 billion of net outflows. Total assets were $2,105,780 at September 30, 2026.
Capital allocation was active. SEI repurchased 2.0 million shares for $215.1 million at an average price of $105.24 per share and the Board approved an additional $800 million of repurchase capacity, bringing available authorization to approximately $926 million. The company ended the quarter with $399,766 of cash and cash equivalents. The release did not provide quantitative forward guidance, while it identified incentive compensation, share buy-backs, asset growth, outsourcing demand, enterprise transformation demand, and sales-event conversion as forward-looking areas.
Management, verbatim
SEI’s third-quarter results reinforce our confidence in the strategy and operating model we have put in place. Our growth is broad-based, our client relationships are becoming deeper and more strategic, and our year-to-date sales results have already surpassed the highest full-year total in SEI’s history.
Ryan Hicke, CEO
Not in the filing
stated, not guessed- Quantitative forward revenue guidance was not provided.
- Quantitative forward gross-margin guidance was not provided.
- Quantitative forward operating-expense guidance was not provided.
- Quantitative forward tax-rate guidance was not provided.
- Gross margin was not reported.
- Free cash flow was not reported.
- A formal prior outlook was not provided.
- Quarterly operating cash flow was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.