SEI Investments Company reported fourth‑quarter 2025 results that exceeded analyst expectations, with revenue of $607.9 million and earnings per share of $1.38, up 16% from the same period a year earlier. The company’s operating margin rose to 27%, a lift from 26% in Q4 2024, while the earnings beat the consensus estimate of $1.34 by $0.04, or roughly 3%.
Revenue growth was driven by a 15% increase in the Investment Managers segment, which generated $221 million in the quarter compared with $191 million a year earlier. The Investment Advisors segment also contributed to the top‑line lift, and the Private Banking unit reported an operating profit of $28.1 million, up 47% from the prior year. These gains were offset by a modest decline in the Private Banking revenue mix, but the overall mix shift toward higher‑margin services helped support the margin expansion.
The earnings beat was largely a result of disciplined cost management and a favorable product mix. SEI’s investment‑management platform continued to scale, allowing the company to capture higher‑margin contracts while keeping operating expenses in line with revenue growth. The company also benefited from a strong demand for outsourcing services, which has been a consistent tailwind in the financial‑services outsourcing market. The combination of higher‑margin sales and effective cost control enabled the company to deliver a margin expansion despite the one‑time impact of severance and M&A fees that were recorded in the quarter.
CEO Ryan Hicke highlighted the quarter as “the highest ever quarterly earnings performance” and emphasized that the momentum generated in Q4 should carry into 2026. CFO Sean Denham noted that the earnings beat was achieved “both including and excluding unusual items,” and that the company’s operating margin expansion reflects “double‑digit earnings growth in more than a full percentage point of operating margin.” The executives underscored a continued focus on operational efficiency while investing in platform capabilities that will support long‑term growth.
Looking ahead, SEI cautions that margin pressure may increase in 2026 as the firm expands its platform capabilities. The company is investing in automation, AI integration, and the recent acquisition of Stratos Wealth Holdings, which is expected to add new advisory revenue streams but also introduces integration costs. Despite these headwinds, SEI remains confident that the demand for outsourcing and advisory services will sustain revenue growth and that the company’s scale advantage will help preserve margin expansion over the medium term.
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