Key Highlights

  • SEI Investments (NASDAQ:SEIC) reported third-quarter adjusted diluted EPS of USD 1.64 on Wednesday, October 21, 2026, up 24% from USD 1.32 and above the consensus estimate of USD 1.58.
  • Revenue rose 14% to USD 662.0 million and operating margin widened to 30% from 28%, while diluted EPS of USD 1.38 absorbed a USD 32.5 million one-time charge linked to Stratos.
  • Net sales events reached USD 46.8 million, the second-highest quarter in company history, taking the year-to-date total to USD 157.4 million, above any previous full year.
  • The board added USD 800 million to the share repurchase authorisation on Tuesday, October 20, 2026, after SEI bought 2.0 million shares for USD 215.1 million in the quarter.

Revenue Up 14% and a Charge Below the Line

SEI Investments (NASDAQ:SEIC), an Oaks, Pennsylvania-based provider of investment processing, operations and asset management services, reported third-quarter results at 4:01 p.m. ET on Wednesday, October 21, 2026. Adjusted diluted EPS was USD 1.64, against the consensus estimate of USD 1.58 and USD 1.32 a year earlier. Diluted EPS was USD 1.38, up 6%, because other expense included a USD 32.5 million one-time charge tied to a termination agreement with Stratos over the purchase of its Mexican subsidiary, NSC. Revenue rose 14% to USD 662.0 million. Operating income grew 24% to USD 198.0 million, lifting the operating margin to 30% from 28%. Adjusted operating income rose 25% to USD 208.5 million. Assets under management were USD 606.4 billion at quarter end.

How Platform Sales Turn Into Operating Leverage

SEI Investments (NASDAQ:SEIC) sells technology and outsourced operations under multi-year contracts, so business signed today tends to add recurring revenue over later quarters as clients move onto its platforms. Net sales events, the company's measure of new business won, reached USD 46.8 million in the quarter, led by Investment Managers at USD 32.0 million and Private Banks at USD 12.6 million. Chief Executive Officer Ryan Hicke said year-to-date sales "have already surpassed the highest full-year total in SEI's history". Segment results show the payoff. Investment Managers revenue rose 14% to USD 235.8 million, and Private Banks operating profit rose 38% to USD 32.2 million as its margin widened to 20% from 16%. Investment Advisors revenue grew 26% to USD 185.4 million, including USD 23.3 million from Stratos.

Risks and What to Watch

The first risk for SEI Investments (NASDAQ:SEIC) is conversion: sales events add revenue only once clients go live, so delays would push growth into later periods. The second is margin in Investment Advisors, which fell to 41% from 46% as Stratos added USD 7.3 million of acquired intangible amortisation. The third is asset flows at LSV, its affiliated asset manager, where net outflows of USD 5.3 billion left assets down 1% from the second quarter. Institutional Investors revenue also fell 2% to USD 70.6 million. Investors should watch use of the roughly USD 926 million buyback authorisation, cash of USD 399.8 million at quarter end and the fourth-quarter report for implementation of this year's sales.

Where Things Stand

The answer is that SEI Investments (NASDAQ:SEIC) grew adjusted EPS 24% because revenue rose 14% on a cost base that grew more slowly, widening the operating margin to 30%. Record year-to-date sales of USD 157.4 million give a pipeline for future revenue, while a USD 32.5 million Stratos charge reduced reported earnings. An enlarged buyback authorisation adds a capital return lever. The next catalysts are client implementations and the fourth-quarter report. Sales events are not guaranteed revenue, and this is not investment advice.