OAKS, PA — SEI Investments Company (NASDAQ: SEIC) expanded its share repurchase authorization by $800 million after reporting a 24% increase in third-quarter operating profit, extending shareholder returns as growth in investment services and banking technology lifted revenue and margins.
The financial technology and asset management company reported operating income of $198 million for the quarter ended September 30, up from $160 million a year earlier. Revenue climbed 14% to $662 million from $578.5 million.
Diluted earnings per share rose 6% to $1.38 from $1.30, while net income attributable to SEI increased 2% to $168.3 million.
On an adjusted basis, earnings per share increased 24% to $1.64, compared with $1.32 a year earlier. Adjusted operating income rose 25% to $208.5 million, reflecting revenue growth and improved operating efficiency.
SEI’s operating margin widened to 30% from 28%, while its adjusted margin increased to 31% from 29%.
The company’s board approved the additional $800 million in share repurchase capacity on October 20, bringing its total available authorization to approximately $926 million.
SEI repurchased 2 million shares during the quarter for $215.1 million, at an average price of $105.24 per share. The company ended September with $399.8 million in cash.
The expanded authorization follows a quarter in which SEI’s private banking and investment management operations generated higher revenue and operating profit, although performance varied across its business segments.
Private Banks recorded an 11% revenue increase to $160.4 million, while operating profit jumped 38% to $32.2 million. Its operating margin expanded to 20% from 16%, supported by growth in professional services and other banking technology offerings.
Investment Managers revenue advanced 14% to $235.8 million, with operating profit increasing at the same rate to $92.3 million. The segment maintained a 39% operating margin as demand for outsourcing services supported growth.
Investment Advisors posted the largest revenue increase among SEI’s established business segments, rising 26% to $185.4 million. Operating profit grew 11% to $75.7 million, although its margin narrowed to 41% from 46%.
The Investment Advisors results included contributions from Stratos Wealth Holdings, which generated $23.3 million in revenue and $4.4 million in operating profit. Excluding Stratos, the segment’s revenue increased 10% and operating profit rose 7%.
Institutional Investors remained a weaker area, with revenue declining 2% to $70.6 million and operating profit falling 3% to $32.8 million, reflecting earlier client outflows.
SEI also recorded a $32.5 million one-time charge associated with an agreement terminating the planned purchase of a Mexican subsidiary owned by Stratos. The charge reduced reported earnings but was excluded from the company’s adjusted results.
Business development activity strengthened during the quarter. SEI recorded $46.8 million in net sales events, its second-highest quarterly total, bringing the year-to-date figure to $157.4 million.
Investment Managers accounted for $32 million of quarterly net sales events, followed by Private Banks at $12.6 million.
“Our year-to-date sales results have already surpassed the highest full-year total in SEI’s history,” Chief Executive Officer Ryan Hicke said.
Assets under management totaled $606.4 billion at September 30, essentially unchanged from the previous quarter. The company’s broader asset base, including assets under administration, advisement and on its platforms, reached approximately $2.1 trillion.
The asset management figures reflected differing trends across operations. LSV Asset Management experienced $5.3 billion in net outflows during the quarter, partially offset by investment performance.
For the first nine months of 2026, SEI generated $1.93 billion in revenue, an increase of 14% from the comparable period in 2025. Operating income rose 26% to $584.5 million.
Nine-month net income attributable to SEI declined 1% to $538.4 million, while diluted earnings per share increased 3% to $4.37. Adjusted earnings per share climbed 27% to $4.73.
Operating cash flow for the nine-month period increased to $565.3 million from $481.3 million a year earlier.
The results reflect stronger operating profitability and an expanded capital return program, alongside acquisition-related costs and uneven performance across SEI’s investment businesses.
SEI provides financial technology, investment operations and asset management services to financial institutions, investment managers, advisers and institutional investors.
Additional financial information and earnings presentation materials are available through the company’s investor relations website at ir.seic.com/events-presentations/events.
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