- Price
- $84.07
- Fair value
- $90.00
- Discount
- 6.6%
- Uncertainty
- Medium
- LSEG rating
- 1.90
- Moat
- None
- Next earnings
- 2026-10-22
- Next earnings is estimate
- No
- 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 $1,697 million in Q2 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 $7.61 billion at June 30, 2026, with a net leverage ratio of 2.75 times EBITDA, and $2.0 billion of 5.5% notes are due in September 2027. Recent results are strong: in Q2 2026, adjusted organic revenue growth was 7.6%, the adjusted EBITDA margin rose to 39.5% and adjusted EPS rose 18% to $1.76. For the gap to close, three things must be true. Organic revenue growth must stay 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. The Q3 2026 report on October 22, 2026, is the next test. The 2027 guidance in February 2027 is 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 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 $7.61 billion at June 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: $435M
Debt: $7.6B
Net debt: $7.2B
Net debt / EBITDA: 2.8× (medium)
Undrawn credit line: $363M, to December 2027
Debt due within 12 months: $265M
Last debt due: 2032
At June 30, 2026, SS&C had cash and cash equivalents of $434.8 million and gross debt of $7.61 billion. The debt was $3.86 billion of Term B-8 loans due May 2031, $765 million of Term A-9 loans due September 2029, $230 million drawn on the revolving credit facility due December 2027, $2.0 billion of 5.5% senior notes due September 2027 and $750 million of 6.5% senior notes due June 2032. $265 million of debt was due within 12 months. $363.4 million of the $600 million revolving credit facility was available. The net leverage ratio under the credit agreement was 2.75 times consolidated EBITDA, and the net secured leverage ratio was 1.70 times. Net cash from operating activities was $716.4 million in the first half of 2026, up 11.1%. In Q2 2026, SS&C returned $499.2 million to shareholders through buybacks and dividends.
As of 2026-06-30.
- Checkpoints
- Oct 22, 2026: Q3 2026 earnings: organic growth and margin. Pending. 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.
Feb 2027 (estimate): 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
- 2026-10-06: SS&C said that it will report Q3 2026 results after the market closes on October 22, 2026.
2026-08-18: SS&C raised its quarterly dividend by 11.1% to $0.30 per share, or $1.20 per year, payable on September 15, 2026.
2026-07-23: 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.
2026-05-20: 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.
2026-04-23: SS&C reported Q1 2026 results. Adjusted revenue rose 8.8% to $1,648 million, and adjusted EPS was $1.69.