SEI Investments Company Q1 FY2026 earnings call

Ryan discussed Q1 as a defining quarter showing strategic and operating changes. Walked through five strategic pillars: investing in growth engines, reimagining asset management, enterprise excellence, boosting international returns, and strategic capital allocation. Sean reiterated strong first quarter, mentioned adjusted EPS and operating profit growth, and discussed segment performances, sales events, asset momentum, and capital allocation

Adjusted EPS totaled $1.44, more than a 20% increase from last year driven by top-line growth and margin expansion. Net sales events were $67 million, including $57 million recurring revenue and $10 million professional services. Adjusted operating profit increased 6% sequentially and 24% year-over-year. Private banking had revenue increase and operating margin improvement. Advisor segment had Stratos contributing nearly $20M revenue and $3M operating profit in Q1. Asset management had strong sales events with advisor business leading growth. IMS had strong sales with large enterprise mandates. Consolidated operating margins were strong

Sales events expected to trend up year over year. Expect improved flow performance in institutional business. Repurchase activity to continue with significant capacity. Margins expected to improve due to revenue growth

AI disruption possibilities exist but seen as positive accelerant. Pressure on cash management programs but SEI's integrated cash programs structured differently with lower balance and revenue contribution

Q: Asked about IMS wins, competitiveness, pipeline.

A: Ryan and Phil discussed winning large alts, competitive bake-off, strong pipeline.

Q: Asked about private banks margin, workforce impact.

A: Sanjay said workforce reduction had little impact, margin due to strategic execution.

Q: Asked about RIA multiples and Stratos.

A: Michael said multiples rising but arbitrage opportunity exists.

Q: Asked about IMS margin timing.

A: Spoke about client conversion tranches and margin return.

Q: Asked about professional services opportunity.

A: Talked about AI-enabled platform and international momentum.

Q: Asked about AI in wealth management.

A: Michael said AI supplements advisors.

Q: Asked about institutional investors pipeline.

A: Spoke about demographics and OCIO growth.

Q: Follow-up on cash programs.

A: Said SEI's cash programs structured differently with no impact seen