The GAAP miss vs consensus is headline-negative, but the adjusted EPS beat and record sales pipeline suggest underlying momentum. The $800M buyback authorization signals management's confidence and provides a floor. Watch for Q4 guidance on the earnings call — the elevated incentive compensation accrual and $32.5M charge are non-recurring. The stock may trade on the adjusted EPS beat and buyback news rather than the GAAP miss.
Price Chart
Executive Summary
SEI reported Q3 2026 GAAP EPS of $1.38, a 17.8% miss vs consensus of $1.68, though revenue of $662M was only 1% below consensus. Adjusted EPS of $1.64 beat the Street consensus of $1.59 by 3.1%, driven by 14% revenue growth and 260bps of adjusted operating margin expansion. The board approved an additional $800M share repurchase authorization, bringing total capacity to ~$926M. A $32.5M one-time charge for terminating the Stratos/NSC acquisition weighed on GAAP results.
Key Financial Metrics
Key Facts
- GAAP EPS $1.38 missed consensus of $1.68 by 17.8%; revenue $662M vs $668.8M estimate (1% miss)
- Adjusted EPS $1.64 beat Street consensus of $1.59 by 3.1%
- Revenue grew 14% YoY to $662M; operating income up 24% to $198M
- Adjusted operating margin expanded 260bps YoY to 31%
- Board approved $800M increase in share repurchase authorization, total available ~$926M
- Q3 net sales events of $46.8M were second-highest quarterly level in SEI history; YTD $157.4M already exceeds prior full-year record
- One-time $32.5M charge for terminating Stratos/NSC acquisition reduced GAAP net income
- Repurchased 2.0M shares for $215.1M at avg price $105.24 during Q3
- Ending AUM flat at $606.4B; AUA +4% sequentially to $1.46T
Financial Impact
GAAP EPS miss of $0.30 vs consensus ($1.38 vs $1.68) is a ~$37M net income shortfall; adjusted EPS beat by $0.05 vs Street. The $800M buyback authorization represents ~6% of market cap at current prices.
Risk Factors
- GAAP EPS miss of 17.8% vs consensus could trigger short-term selling pressure
- LSV net outflows of $5.3B in Q3 and Institutional Investors revenue decline of 2% signal headwinds in asset management
- Stratos/NSC termination charge of $32.5M and ongoing integration costs create earnings noise
- Elevated incentive compensation accrual ($6.4M) may compress Q4 margins if revenue growth slows
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000350894-26-000051 |
| Document: seic-20261021.htm | 0000350894-26-000051 |
| Document: q32026seicearningspresen.htm | 0000350894-26-000051 |
| Document: 0000350894-26-000051-index-headers.html | 0000350894-26-000051 |
| Document: 0000350894-26-000051-index.html | 0000350894-26-000051 |
| Document: 0000350894-26-000051.txt | 0000350894-26-000051 |
| 8-K Data (Synthetic) | 0000350894-26-000051 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | SC 13G/A | $103.50 | awaiting T+20 | — | $102.88 (−0.60%) |
Oct 21, 2026 6d ago | 8-K | $104.50 | awaiting T+20 | — | $102.88 (−1.55%) |
Oct 21, 2026 6d ago | Press Release | $104.50 | awaiting T+20 | — | $102.88 (−1.55%) |
Oct 1, 2026 26d ago | Insider Cluster | $102.43 | awaiting T+20 | — | $102.88 (+0.44%) |
Sep 8, 2026 7w ago | Insider Cluster | $107.17 $102.07 | ▲ +4.76% | ▲ +6.96% | $102.88 (+4.00%) |
Sep 3, 2026 7w ago | Insider Cluster | $110.39 $103.26 | ▼ −6.46% | ▼ −7.06% | $102.88 (−6.80%) |
Aug 14, 2026 10w ago | 13F-HR | $106.38 $105.51 | ▼ −0.82% | ▲ +1.17% | $102.88 (−3.29%) |
Aug 6, 2026 11w ago | Insider Cluster | $104.70 $110.39 | ▲ +5.43% | ▲ +5.83% | $102.88 (−1.74%) |
Aug 4, 2026 12w ago | Insider Cluster | $104.76 $109.12 | ▲ +4.16% | ▲ +4.76% | $102.88 (−1.79%) |
Jul 30, 2026 12w ago | Insider Cluster | $102.98 $111.63 | ▲ +8.40% | ▲ +5.41% | $102.88 (−0.10%) |
US Market Status
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