SS&C jumps on earnings beat, $1B buyback program
Software provider exceeds Q4 EPS estimates by $0.22 and raises 2026 guidance on strong operating cash flow
SS&C Technologies Holdings delivered a stronger-than-expected fourth quarter, reporting earnings that beat Wall Street estimates by 15% and announcing more than $1 billion in shareholder returns for 2025 through an aggressive buyback program.
The financial software and services provider reported adjusted earnings per share of $1.69 for the quarter ended December 31, 2025, significantly above analyst expectations of $1.47. Revenue reached $1.65 billion, representing 8.1% year-over-year growth, while adjusted EPS increased 18.2% compared to the same period last year, according to the company's quarterly results announcement.
The strong performance pushed shares higher in trading, with the stock climbing more than 1.7% to around $75. SS&C has gained momentum recently after hitting a 52-week low of $68.96 in December, though it remains below its October peak of $90.50. The company currently trades at a forward price-to-earnings ratio of 11.17, suggesting room for multiple expansion if growth continues.
Looking ahead, management issued fiscal 2026 guidance that exceeded market expectations. The company projects adjusted EPS in the range of $6.70 to $7.02, with operating cash flow expected to reach $1.7 billion to $1.8 billion. This outlook implies continued double-digit earnings growth and solid free cash flow generation.
Perhaps most notable for investors was the company's capital allocation strategy. SS&C returned $1 billion to shareholders through stock repurchases in 2025, including $384 million in the fourth quarter alone. The buyback program represents approximately 5.6% of the company's $17.9 billion market capitalization, signaling management's confidence in the business and commitment to shareholder value creation.
"Our operational discipline and focus on execution delivered strong financial results in 2025, with revenue growth of 8.1% and adjusted EPS growth of 18.2% for the fourth quarter," the company stated in its earnings announcement. "Our strong cash flow generation enabled us to return over $1 billion to shareholders through repurchases while investing in our business."
Analysts maintain a broadly positive view on the stock. The consensus rating among Wall Street analysts is buy, with seven firms rating it a buy or strong buy and three rating it a hold, according to market data. No analysts currently recommend selling the stock. The average target price stands at $100.78, implying potential upside of approximately 34% from current levels.
The financial services technology sector has seen increased investor interest as firms look to modernize their operations and improve efficiency. SS&C's integrated software platform and services are used by asset managers, banks, and insurance companies worldwide to handle complex back-office operations, compliance, and reporting requirements.
The company's profitability metrics remain robust, with an operating margin of 23.3% and a profit margin of 13.9% over the trailing twelve months. Quarterly earnings growth reached 27.7% year-over-year, outpacing revenue growth of 7%, suggesting successful margin expansion.
With 86.5% of shares held by institutional investors and 14.7% held by insiders, SS&C has strong ownership stability. The company also pays a quarterly dividend of $1.02 per share, yielding 1.24% at current prices, providing investors with additional return alongside the share buybacks.
Investors will be watching closely for any commentary on acquisition activity or organic growth initiatives on the company's earnings call, as SS&C has historically used a combination of bolt-on acquisitions and product development to expand its market position.