Financial software provider SS&C Technologies (NASDAQ: SSNC) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 5.9% year on year to $1.54 billion. The company expects next quarter’s revenue to be around $1.55 billion, close to analysts’ estimates. Its non-GAAP profit of $1.45 per share was 4.2% above analysts’ consensus estimates.

Is now the time to buy SSNC? Find out in our full research report (it’s free).

StockStory’s Take

SS&C’s second quarter was marked by steady organic growth and strong contributions from its core fund administration and software-enabled services businesses. Management pointed to the GlobeOp segment’s double-digit growth in private markets and retail alternatives as a primary driver, supported by expanding client relationships in Europe, Australia, and the Middle East. CEO Bill Stone emphasized, “Internationally, we are seeing strength... reflecting a positive trend of increased international win rates attributable to the investments we have made over the past several years.” The company also maintained high client retention rates while continuing to invest in new technology and operational efficiency.

Looking ahead, SS&C leadership expects continued momentum from recently launched AI-driven solutions, ongoing international expansion, and their acquisition of Calastone. Management highlighted the opportunity to accelerate cross-selling with Calastone’s network and to leverage Blue Prism’s AI capabilities across more client workflows. CFO Brian Schell noted that the company will continue to prioritize R&D investments, stating, “We’re generating lots of cash... but we’re not going to starve our development teams.” The company is also closely monitoring macroeconomic factors and seasonal trends in its Healthcare and class action services businesses as it guides for steady full-year growth.

Key Insights from Management’s Remarks

Management attributed second quarter growth to expanding international demand, AI-related product traction, and continued progress in fund administration and software-enabled services.

• Private markets and alternatives strength: GlobeOp, the fund administration business, saw over 10% growth in private markets, driven by client demand for complex fund structures and hybrid products. Retail alternatives, a smaller but fast-growing area, expanded by 20%.
• International client wins: SS&C reported increased success in Europe, Australia, and the Middle East, attributing this to years of targeted investment and the ability to deliver more sophisticated, localized services across business units.
• AI and automation advancements: The company highlighted its first AI agent sale to a U.S. insurance client through Blue Prism, with automation reducing manual workload by up to 80% and improving processing accuracy. Management sees potential to scale these solutions across its large client base.
• Class action services and cross-selling: Battea, the class action services unit, won 30 new clients this quarter, with two-thirds being cross-sold from existing SS&C relationships. Management expects seasonal lumpiness but sees second-half growth potential as courts typically clear more cases late in the year.
• Resilient Healthcare segment: While organic growth in Health Solutions was flat, management remains optimistic about future deal wins, noting that the business is cash-generative and that the main sales window aligns with the second half of the year, particularly for Medicaid and Medicare clients.

Drivers of Future Performance

SS&C’s outlook centers on scaling AI solutions, cross-selling post-acquisition, and maintaining high client retention, while monitoring macroeconomic and seasonal sector dynamics.

• AI integration and new capabilities: Management is expanding the use of Blue Prism’s AI-driven automation, aiming to roll out more digital agents and workflow solutions across verticals. The company expects these tools to improve operational efficiency and create new revenue streams, especially as clients seek to modernize manual processes.
• Cross-selling with Calastone: The pending Calastone acquisition is positioned to open cross-selling channels, especially in ETFs, digital assets, and money market products. CEO Bill Stone described the combined client base as highly complementary and sees potential to accelerate Calastone’s double-digit growth.
• Macro and segment-specific seasonality: Management acknowledged that some business lines, such as class action services (Battea) and Healthcare, are subject to seasonal and macroeconomic factors. Success in the second half will depend on courts clearing cases and healthcare contract wins during the main sales cycle.

Catalysts in Upcoming Quarters

Over the coming quarters, the StockStory team will be watching (1) the pace of cross-selling and integration with Calastone, (2) the scaling and commercialization of Blue Prism AI-driven solutions across new client segments, and (3) deal activity in Healthcare and class action services, especially as seasonal trends play out. Progress on these fronts will be key in assessing SS&C’s ability to sustain organic growth and margin expansion.

SS&C currently trades at $85.85, up from $83.63 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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