From The Motley Fool · Motley Fool Transcribing · · 2m
SEI Q3 2026 Earnings Report Highlights
SEI reports record revenue growth and strategic shifts in financial services.
In brief
SEI reports record revenue growth and strategic shifts in financial services. SEI achieved $662 million revenue with 14% growth, 31% adjusted operating margin, and $2.1 trillion assets under management. Originally reported by The Motley Fool.
Q3 2026 Results
SEI reported $662.0 million revenue, a 14% increase driven by sales conversions and client capital deployment.
Adjusted EPS Growth
Adjusted diluted EPS reached $1.64, a 24% increase from $1.32 in Q3 2025.
Net Sales Events
Net sales events totaled $46.8 million, exceeding previous full-year results with $157.4 million year-to-date.
Investment Managers Segment
Investment Managers Segment revenue grew 14% to $235.8 million, driven by alternative asset managers.
Private Banks Segment
Private Banks Segment revenue increased 11% to $160.4 million with balanced contributions from professional services.
Investment Advisors Segment
Investment Advisors Segment revenue grew 26% to $185.4 million following Stratos acquisition.
Institutional Investors Segment
Institutional Investors Segment revenue declined 2% to $70.6 million due to client outflows.
Adjusted Operating Margin
Adjusted operating margin increased to 31%, a 260 basis point improvement from Q3 2025.
Assets Under Management
Assets under management reached $606.4 billion, essentially flat with market movements.
Assets Under Administration
Assets under administration grew 4% to $1.41 trillion, driven by new mandates.
Stratos Financial Contribution
Stratos contributed $23.3 million revenue and $4.4 million operating profit, including $7.3 million amortization.
ETF Assets Under Management
ETF assets grew to $9 billion, up from $4 billion in the prior year.
Share Repurchases
Share repurchases totaled $215.1 million, buying back two million shares at $105.24 per share.
Incentive Compensation Accrual
Incentive compensation accrual increased by $6.4 million due to strong year-to-date performance.
NSC Termination Charge
NSC termination charge of $32.5 million related to mutual agreement to end Stratos Mexican subsidiary acquisition.
LSV Asset Management Outflows
LSV asset management experienced $5.3 billion net outflows, offsetting strong investment performance.
Retail Transfer Agency
Retail transfer agency run rate expected to exceed $10 million by end of 2027.
Singapore Office Opening
Singapore office opened in September 2026 to support Asia Pacific client operations.
Cash and Cash Equivalents
Cash and cash equivalents totaled $399.8 million at quarter end.
Stock Repurchase Authorization
Board approved $800 million increase in share repurchase authorization, totaling $926 million.
The one thing
SEI achieved $662 million revenue with 14% growth, 31% adjusted operating margin, and $2.1 trillion assets under management.
