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SEIC Q3 Earnings Beat Estimates as Revenues & AUM Rise Y/Y, Stock Down

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Key Takeaways

  • SEIC's Q3 EPS of $1.30 topped estimates and rose 9.2% year over year.
  • Revenues grew 7.7% on higher fees, while AUM climbed nearly 10% to $541.5B.
  • Expenses increased 6.3%, though operating income improved 11.2% year over year.

SEI Investments Co.’s (SEIC - Free Report) third-quarter 2025 earnings per share (EPS) of $1.30 beat the Zacks Consensus Estimate of $1.25. Moreover, the bottom line reflected a rise of 9.2% from the prior-year quarter.

Results were aided by higher revenues and a rise in assets under management (AUM). However, higher expenses acted as a spoilsport. As a result, shares of SEI Investments declined 2.4% in yesterday’s after-market trading hours.
 
Net income attributable to SEI Investments was $164.2 million, up 6% from the year-ago quarter. Our estimate for the metric was $148.2 million.

SEIC’s Revenues & AUM Improve, Expenses Rise

Total revenues were $578.5 million, up 7.7% year over year. The rise was driven by higher asset management, administration and distribution fees, as well as information processing and software servicing fees. However, the top line missed the Zacks Consensus Estimate of $579.5 million.

Total expenses were $418.6 million, up 6.3% year over year. The increase was driven by a rise in almost all cost components, except for facilities, supplies and other costs and depreciation charges. Our estimate for the metric was $429.4 million.

Operating income increased 11.2% year over year to $160 million. Our estimate for the metric was $139.2 million.

As of Sept. 30, 2025, AUM was $541.5 billion, reflecting a rise of 9.8% from the prior-year quarter. Client assets under administration (AUA) were $1.21 trillion, up 16% year over year. Client AUA did not include $11.5 billion related to Funds of Funds assets reported as of Sept. 30, 2025.

SEI Investments’ Share Repurchase Update

In the reported quarter, SEIC bought back 1.6 million shares for $141.6 million at an average price of $90.02 per share.

Our View on SEIC

SEI Investments’ global presence, diverse product offerings, solid balance sheet, strategic acquisitions and a robust AUM balance are expected to keep supporting the top line. However, elevated operating expenses, led by technological upgrades alongside concentrated fee-based revenues, are concerning.

SEI Investments Company Price, Consensus and EPS Surprise

SEI Investments Company Price, Consensus and EPS Surprise

SEI Investments Company price-consensus-eps-surprise-chart | SEI Investments Company Quote

Currently, SEI Investments carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Another Asset Manager

BlackRock’s (BLK - Free Report) third-quarter 2025 adjusted earnings of $11.55 per share handily surpassed the Zacks Consensus Estimate of $11.25. The figure reflects a marginal rise from the year-ago quarter.

BlackRock’s results benefited from a rise in revenues. The AUM balance witnessed robust growth, reaching a record high of $13.46 trillion, driven by net inflows. However, higher expenses acted as a headwind.

Earnings Release Date of Another Asset Manager

Invesco (IVZ - Free Report) is scheduled to announce third-quarter 2025 numbers on Oct. 28.

Over the past seven days, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been revised 2.2% lower to 45 cents. The figure implies a rise of 2.3% from the prior-year quarter.


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