SSC Technologies 2025 Q2 Earnings Record Adjusted Revenues Despite EPS Decline

SS&C Technologies (SSNC) reported its fiscal 2025 Q2 earnings on July 30th, 2025. The company delivered a solid performance with a 5.9% increase in GAAP revenue, reaching $1.54 billion, compared to $1.45 billion in the previous year. However, SS&C's GAAP earnings per share (EPS) fell by 3.9% to $0.74, missing expectations. SS&C raised its full-year guidance for EPS, reflecting a positive outlook following strong first-quarter results. The company also updated its third-quarter guidance, expecting revenue between $1.5 billion and $1.6 billion and EPS ranging from $1.44 to $1.50.

Revenue
SS&C Technologies saw revenue growth of 5.9% in Q2 2025, reaching $1.54 billion. The software-enabled services segment contributed significantly with $1.27 billion, while license, maintenance, and related revenues added $269.10 million to the total.

Earnings/Net Income
SS&C Technologies' EPS decreased by 3.9% to $0.74 in Q2 2025 from $0.77 in Q2 2024, with net income declining 5.0% to $181.10 million. This decline indicates weaker EPS performance for the quarter.

Price Action
The stock price of SS&C Technologies rose 0.20% during the latest trading day, increased 2.10% over the most recent full trading week, and climbed 4.39% month-to-date.

Post-Earnings Price Action Review
The strategy of buying SSNC stock when revenue exceeds expectations and holding it for 30 days yielded a 35.63% return, notably underperforming the benchmark return of 87.61%. This strategy's Sharpe ratio of 0.26 indicates a moderate risk-adjusted return. With a maximum drawdown of 0% and a volatility of 24.33%, the strategy maintained a low-risk profile but failed to perform as well as the market. Despite the strategy's lackluster performance in comparison to broader market trends, it demonstrated minimal risk exposure.

CEO Commentary
Bill Stone, CEO of SS&C Technologies, highlighted the company’s solid performance in the first quarter, with organic revenue growth of 5.1% and adjusted EPS expanding by 8.3%. He noted that the growth was driven by increased demand for their software solutions within the financial services and healthcare sectors, despite facing some market challenges. Stone emphasized a commitment to strategic investments in technology and innovation to enhance market positioning. He expressed an optimistic outlook for the company's future, indicating confidence in maintaining growth momentum and addressing customer needs effectively.

Guidance
SS&C Technologies has updated its 2025 guidance, projecting revenue of $6.238 billion. For the third quarter, the company expects EPS in the range of $1.440 to $1.500, alongside revenue guidance of $1.5 billion to $1.6 billion. The full-year guidance for EPS has been adjusted to between $5.820 and $6.060, reflecting a slight increase in profit outlook following a strong first quarter performance.

Additional News
SS&C Technologies announced a definitive agreement to acquire Calastone, a global funds network, for approximately $1.03 billion. This strategic acquisition is anticipated to conclude in the fourth quarter of 2025, aiming to expand SS&C's geographical reach and enhance its ETF and digital asset capabilities. In Q2 2025, SS&C repurchased 3.4 million shares at an average price of $77.99 per share, as part of its ongoing buyback program. Additionally, no C-level changes were reported during this period.