SS&C Technologies Holdings Maintains Buy Rating Amid Strong Financials and Strategic Acquisitions

SS&C Technologies Holdings has reported strong financial performance, exceeding expectations with adjusted earnings per share driven by higher organic growth and a robust EBITDA margin. The recent acquisition of Calastone is expected to enhance growth and positively impact earnings per share within a year. Analyst Jeff Schmitt maintains a Buy rating, anticipating sustained organic growth around 5%, double-digit earnings growth, and potential merger and acquisition activity.

SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) has reported robust financial performance for the second quarter of 2025, with adjusted earnings per share (EPS) driven by higher organic growth and a strong EBITDA margin. The company's adjusted revenue for the quarter reached $1,537.8 million, up 5.9% year-over-year [2]. This performance was supported by a 3.5% increase in adjusted organic revenue growth and a 3.9% rise in financial services recurring revenue growth [2].

The company's operating income margin improved to 22.4% from 22.6% in the same period last year, while adjusted consolidated EBITDA margin increased to 39.0% from 38.5% [2]. SS&C Technologies also generated net cash from operating activities of $645.1 million for the six months ended June 30, 2025, up 14.1% compared to the same period in 2024 [2].

In addition to its strong financial performance, SS&C Technologies announced a definitive agreement to acquire Calastone, a global funds network connecting Managers, Distributors, and Servicers, for approximately $1.03 billion. The acquisition is expected to close in the fourth quarter of 2025 and is anticipated to enhance growth and positively impact earnings per share within a year [1].

Analyst Jeff Schmitt of UBS maintains a Buy rating on SS&C Technologies, expecting sustained organic growth around 5% and double-digit earnings growth. Schmitt also anticipates potential merger and acquisition activity in the future [1].

References:
[1] https://www.marketscreener.com/news/ubs-adjusts-price-target-on-ss-c-technologies-to-108-from-105-maintains-buy-rating-ce7c5fdad989f225
[2] https://investor.ssctech.com/news-and-events/news-details/2025/SSC-Technologies-Releases-Q2-2025-Earnings-Results/default.aspx