This is an old version of SSNC from 13 days ago (Oct 31, 2026).See the latest version
SSNC
- Price
- $80.39
- Discount category
- Below intrinsic value
- Next earnings
- Jan 22, 2027
- Next earnings is estimate
- Yes
- Company name
- SS&C Technologies
- Sector
- Financial and healthcare software and services
- About
- SS&C Technologies sells software and technology-enabled services to asset managers, hedge funds, private equity funds, banks, insurers, wealth managers and health plans. Its largest business is fund administration through SS&C GlobeOp, which keeps the books and calculates fund values for alternative investment funds. Other businesses include Global Investor and Distribution Solutions (transfer agency and investor services), wealth and investment software such as Black Diamond, and healthcare software and services. Most revenue is recurring under multi-year contracts. Technology-enabled services are most of revenue, and license, maintenance and related fees are the rest. SS&C bought Calastone, a fund transaction network, in October 2025 and Curo Fund Services in November 2025. Adjusted revenue was $1,691 million in Q3 2026.
- Thesis
- The market prices SS&C for the risk that AI tools lower the value of its software and of the labor-heavy services it sells, and for its debt. Much of its revenue comes from fund administration and investor services, where clients pay for people and processes that AI may automate. Gross debt was $7.48 billion at September 30, 2026, with a net leverage ratio of 2.63 times EBITDA, and $2.0 billion of 5.5% notes are due in September 2027. Profits still grow, but growth slowed in Q3 2026. Adjusted EPS rose 14.8% to $1.78 and the adjusted EBITDA margin rose to 39.9%. Adjusted organic revenue growth fell to 5.2% from 7.6% in Q2 2026. For the gap to close, three things must be true. Organic revenue growth must come back near 6% or more, which shows that clients keep buying its services as AI tools spread. The adjusted EBITDA margin must stay near 39% or rise as SS&C uses AI in its own operations. SS&C must refinance the 2027 notes on good terms and keep leverage under 3 times. SS&C expects to refinance the notes in Q4 2026, which is the next test. The Q4 2026 report and the 2027 guidance, expected in early 2027, are the main test. If these checks pass, the gap can close over the next three to five quarters. The main reason it may not close is a further slowdown in organic growth that confirms the fear of AI.
- Risks
- AI tools may automate fund accounting, investor services and other work that SS&C sells, or let clients and new competitors do the work at a lower cost. This can slow growth and lower prices. Gross debt was $7.48 billion at September 30, 2026. $2.0 billion of 5.5% notes are due in September 2027, and the Term A-9 loans can mature early if these notes are not refinanced. Higher interest rates on new debt would lower earnings. Revenue depends on the assets and activity of asset managers and alternative funds. A long market downturn or lower fund flows can reduce fees. SS&C grows partly by buying companies. A large purchase can raise debt, and integration problems can lower margins.
- Balance sheet
- Cash: $525M Debt: $7.5B Net debt: $7.0B Net debt / EBITDA: 2.6× (medium) Debt due within 12 months: $2.3B Last debt due: 2032 At September 30, 2026, SS&C had cash and cash equivalents of $525.4 million and gross debt of $7.48 billion. In Q3 2026, SS&C paid down $130.0 million of debt. The $2.0 billion of 5.5% senior notes are due on September 30, 2027, so the balance sheet now shows them as current debt. The current portion of long-term debt was $2,260.0 million. SS&C said that it is working on this maturity and that a refinancing in Q4 2026 is probable. The net leverage ratio under the credit agreement was 2.63 times consolidated EBITDA, down from 2.75 times at June 30, 2026. The net secured leverage ratio was 1.59 times. Adjusted consolidated EBITDA for the 12 months to September 30, 2026, was $2,653.0 million. Net cash from operating activities was $1,216.3 million in the first nine months of 2026, up 10.4%. In Q3 2026, SS&C returned $225.3 million to shareholders: $154.8 million for 1.9 million shares and $70.5 million in dividends. On June 30, 2026, the last notes were the 6.5% notes due June 2032. As of Sep 30, 2026.
- Checkpoints
- Oct 22, 2026: Q3 2026 earnings: organic growth and margin. Failed. Watch: Adjusted EPS within the $1.73 to $1.79 guidance and organic revenue growth of 6% or more pass; slower organic growth or a lower margin fails. Outcome: Adjusted EPS of $1.78 was within the guidance and the margin rose to 39.9%, but adjusted organic revenue growth slowed to 5.2%, below the 6% test. Q4 2026 (estimate): Refinancing of the 2027 notes. Pending. Watch: New debt that repays the $2.0 billion 5.5% notes due September 2027 and keeps net leverage under 3 times passes; no refinancing by the end of 2026 or a much higher interest rate fails. Jan 22, 2027 (estimate): Q4 2026 results and the 2027 guidance. Pending. Watch: A 2027 outlook with organic growth near 6% or more and a plan to refinance the 2027 notes pass; lower growth guidance fails.
- Recent events
- Oct 22, 2026: SS&C reported Q3 2026 results. Adjusted revenue rose 7.8% to $1,691 million, and adjusted organic revenue growth was 5.2%, down from 7.6% in Q2 2026. Adjusted EBITDA rose 9.0% to a record $675 million, a 39.9% margin. Adjusted EPS rose 14.8% to $1.78, within the company's guidance. SS&C paid down $130 million of debt and said that a refinancing of its $2.0 billion notes due September 2027 in Q4 2026 is probable. It narrowed its 2026 adjusted EPS guidance to $7.11 to $7.17, from $6.93 to $7.25. Oct 6, 2026: SS&C said that it will report Q3 2026 results after the market closes on October 22, 2026. Aug 18, 2026: SS&C raised its quarterly dividend by 11.1% to $0.30 per share, or $1.20 per year, payable on September 15, 2026. Jul 23, 2026: SS&C reported Q2 2026 results. Adjusted revenue rose 10.3% to $1,697 million, and adjusted organic revenue growth was 7.6%. Adjusted EBITDA rose 11.7% to a record $671 million, a 39.5% margin. Adjusted EPS rose 18.1% to $1.76. SS&C bought back a record 6.4 million shares for $435 million and gave 2026 adjusted EPS guidance of $6.93 to $7.25. May 20, 2026: Shareholders approved 10 million more shares for the stock incentive plan. In May 2026, the board also authorized a new stock buyback program of up to $1.5 billion. Apr 23, 2026: SS&C reported Q1 2026 results. Adjusted revenue rose 8.8% to $1,648 million, and adjusted EPS was $1.69.