Earnings
SS&C's fund administration arm holds 9% growth as group organic growth slows to 5.2%
The largest unit at the hedge fund administrator kept pace in the third quarter, but weakness in its wealth and automation software businesses pulled the group's organic growth down from 7.6% and the shares fell after hours.
HedgeWeekly News Desk ·
SS&C Technologies reported third-quarter revenue of $1.69 billion on Thursday, up 7.8% from a year earlier, with adjusted organic growth of 5.2%, down from 7.6% in the second quarter. Adjusted diluted earnings rose 14.8% to $1.78 a share, a cent above the consensus figure cited by Investing.com, and adjusted EBITDA reached a record $674.8 million, a 39.9% margin.
GlobeOp, the unit that houses SS&C's hedge fund, private markets, registered fund and retail alternatives administration, grew organically by 9.0% for a second straight quarter on a 2025 revenue base of $1.77 billion. Elsewhere the picture was weaker: Wealth and Investment Technologies slowed to 1.9% organic growth from 9.8% in the second quarter, which management attributed to a large renewal booked the prior quarter, while Intelligent Automation & Analytics shrank 4.5%.
The company guided fourth-quarter adjusted revenue to $1.70 billion to $1.74 billion and adjusted earnings to $1.88 to $1.94 a share, with full-year adjusted earnings of $7.11 to $7.17. It bought back 1.9 million shares for $154.8 million in the quarter and plans to refinance $2.0 billion of notes due in September 2027 during the fourth quarter. The shares, which closed at $89.54, were down 5.01% at $85.05 in after-hours trading, according to Investing.com.
Why it matters: SS&C's GlobeOp figures are one of the few quarterly reads on demand for outsourced fund administration, and steady 9% growth suggests managers are still moving operations to third parties as alternative assets grow; the company's results deck says its alternative assets under administration rose $628 billion over two years. Investors will watch whether the slower group growth implied by the fourth-quarter guidance reflects one-off timing in software renewals or a broader slowdown, and how the 2027 notes are refinanced.