The cash flow guidance raise (+$50M) is the most tangible positive signal, reflecting durable preneed cash receipts. However, the EPS beat was marginal and funeral gross margins compressed 130bps due to higher selling costs. Monitor the back-half cash flow trajectory and whether preneed production continues converting to recognized revenue at the expected pace. The stock's historical T+20 performance on prior neutral reports has been poor (avg -5.3%), suggesting limited upside catalyst from this in-line quarter.
Price Chart
Executive Summary
SCI reported Q2 2026 GAAP EPS of $0.90, a 1.4% beat vs $0.89 consensus, on revenue of $1.103B (2.2% above $1.08B estimate). Revenue grew 3.6% YoY. The company confirmed its 2026 adjusted EPS midpoint of $4.20 and raised its 2026 operating cash flow guidance midpoint by $50M to $1.085B, citing stronger cemetery preneed cash receipts. The beat was modest, but the cash flow raise and strong preneed sales production (cemetery +8%, funeral +7%) signal durable cash generation.
Key Financial Metrics
Key Facts
- Q2 2026 GAAP EPS $0.90 vs consensus $0.89 (beat by 1.4%)
- Q2 2026 revenue $1.103B vs consensus $1.08B (beat by 2.2%)
- Revenue grew 3.6% YoY from $1.065B
- Adjusted EPS $0.90 vs $0.88 in Q2 2025
- Operating cash flow $238.7M, up 43% YoY; adjusted OCF $238.8M, up 42%
- Confirmed 2026 adjusted EPS guidance midpoint at $4.20, narrowed range to $4.10-$4.30
- Raised 2026 adjusted operating cash flow guidance midpoint by $50M to $1.085B
- Comparable cemetery preneed sales production +8%; funeral preneed sales production +7%
- Share repurchases and dividends totaled $363M YTD through Q2
Financial Impact
Modest EPS beat of $0.01; revenue beat of ~$23M; cash flow guidance raised by $50M
Risk Factors
- Funeral gross margin compression (130bps YoY) from higher selling compensation on insurance-funded preneed sales
- Core funeral services performed declined 1.7% YoY, partially offset by higher average revenue per service
- Cremation rate continues to rise (core 58.0%, total 64.8%), which structurally pressures per-service revenue over the long term
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302838205 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 8w ago | Press Release | $85.34 $81.09 | ▼ −4.98% | ▼ −4.38% | $76.96 (−9.83%) |
Aug 4, 2026 8w ago | Insider Cluster | $85.52 $81.43 | ▼ −4.78% | ▼ −3.54% | $76.96 (−10.02%) |
Aug 4, 2026 8w ago | Insider Cluster | $85.52 $81.43 | ▼ −4.78% | ▼ −3.54% | $76.96 (−10.02%) |
Jul 29, 2026 9w ago | 8-K | $85.29 $83.47 | ▼ −2.13% | ▼ −6.10% | $76.96 (−9.77%) |
Jul 29, 2026 9w ago | Press Release | $85.29 $83.47 | ▼ −2.13% | ▼ −6.10% | $76.96 (−9.77%) |
Jul 16, 2026 11w ago | Press Release | $79.67 $83.12 | ▲ +4.33% | ▲ +0.71% | $76.96 (−3.41%) |
May 6, 2026 21w ago | 8-K | $78.38 $68.77 | ▼ −12.26% | ▼ −15.04% | $76.96 (−1.82%) |
Apr 29, 2026 22w ago | 8-K | $80.66 $75.10 | ▼ −6.89% | ▼ −12.12% | $76.96 (−4.59%) |
Apr 24, 2026 22w ago | DEFA14A | $87.39 $76.73 | ▼ −12.20% | ▼ −16.22% | $76.96 (−11.94%) |
Apr 3, 2026 25w ago | DEFA14A | $82.27 $78.62 | ▼ −4.44% | ▼ −13.42% | $76.96 (−6.46%) |
US Market Status
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