Episode
SS&C Stock: A Record Quarter, a 10% Pop, and It’s STILL Cheap? Why We Say BUY (SSNC Q2 2026)
- Published
- Jul 25, 2026
- Duration seconds
- 843
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Summary
SS&C Technologies Holdings, Inc. (SSNC) Q2 2026 — SS&C Technologies (SSNC), the software plumbing behind the asset-management industry, reported RECORD Q2 2026 results and the stock jumped ~10%. Adjusted EPS of $1.76 beat the ~$1.68 estimate (+18% YoY) on revenue of $1,695.7M (+10.3%), and adjusted EBITDA hit a record $670.7M at a 39.5% margin. The star was adjusted ORGANIC revenue growth of 7.6% - a multi-year high for a company the Street had written off as a low-single-digit roll-up. Technology-enabled services (fund admin, outsourced ops, Blue Prism automation) rose 11.1% to $1,408.2M (83% of revenue); license/maintenance was $287.5M (+6.8%). But mind the gap: GAAP EPS was just $0.97 (+34.7%) - about half the adjusted figure, most of the difference amortization of acquired intangibles. The balance sheet carries the roll-up's legacy: $7,613.5M gross debt, 2.75x net leverage, ~$410M/yr interest. Cash generation is strong: 1H26 operating cash flow $716.4M (+11.1%), FCF ~$1.45B (~8% yield). Capital allocation is the tell - SS&C returned $499.2M to shareholders in Q2 (a record 6.4M-share, $435.2M buyback + $64.0M dividends) and 100% of allocated capital YTD, a founder-led company buying its own stock rather than paying down debt. It raised FY26 guidance to adj revenue $6,672-6,832M and adj EPS $6.93-7.25 (~+18%). At ~$74 the stock is ~19% below its $91 high and trades ~12x FCF. Our owner-earnings DCF (10% discount to respect the leverage) lands fair value near $92 (~25% upside). Our call: BUY, 4/5. SS&C Technologies is the unglamorous software plumbing behind the money-management industry - the back-office systems and outsourced operations that thousands of hedge funds, private-equity firms, insurers and wealth managers run on. Founded in 1986 and still…