SSNC changes
Pick any two versions below to diff them.
- Price
- $80.39 → $79.44(−1.2%)
- 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. added: In November 2026, SS&C removed: expects added: raised new debt to removed: refinance added: redeem the removed: notes in Q4 2026, which added: notes, and the redemption itself 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 removed: 2027, added: 2027. In November 2026, SS&C raised new debt to redeem them and added: extended the Term A-9 loans removed: can mature early if these notes are not refinanced. added: and the revolving facility to November 6, 2031. 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.
- Recent events
- added: Nov 6, 2026: SS&C sold $1.2 billion of 2.75% convertible senior notes due December 1, 2031. The conversion price is about $99.46 per share, 25.0% above the $79.57 closing price on November 4, 2026. SS&C bought capped calls with a cap price of about $139.25 per share to reduce dilution, and it used about $100.0 million to buy back about 1.3 million shares. It also borrowed $750 million of new Term B-8 loans and $240 million of new Term A-9 loans, and it extended the Term A-9 loans and its revolving credit facility to November 6, 2031. SS&C plans to use the money to redeem all $2.0 billion of its 5.5% senior notes due September 30, 2027. 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.