10-Q · April 30, 2026
Service Corporation International (SCI) reported Q1 2026 revenues of $1.097 billion, slightly exceeding estimates of $1.096 billion but falling short on EPS at $0.97 compared to expectations of $1.01. The company saw a…
Earnings analysis · 10-Q
SCI earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
SCI delivered Q3 revenue of $1,107.3 million, beating consensus by approximately $4.3 million, while adjusted EPS of $0.97 missed by $0.02. GAAP EPS rose to $1.03 from $0.83, aided by $11.2 million of net gains on…
Read full summary
SCI delivered Q3 revenue of $1,107.3 million, beating consensus by approximately $4.3 million, while adjusted EPS of $0.97 missed by $0.02. GAAP EPS rose to $1.03 from $0.83, aided by $11.2 million of net gains on divestitures and impairment charges, but the lowered 2026 outlook and trust-investment sensitivity remain concerns. Cash flow expectations were maintained at a $1,085 million adjusted operating cash flow midpoint and approximately $750 million of adjusted free cash flow.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.03
What stood out
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Revenue Beat Estimates
Q3 revenue was $1,107.3 million, approximately $4.3 million above the $1,103.0 million consensus estimate and up from $1,060 million in Q3 2025.
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GAAP EPS Increased 24%
GAAP EPS increased to $1.03 from $0.83 in Q3 2025, a $0.20 or 24% increase, supported by $11.2 million of net gains on divestitures and impairment charges.
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Adjusted EPS Missed Estimates
Adjusted EPS was $0.97, $0.02 below the $0.99 consensus estimate, indicating weaker underlying earnings than expected despite the revenue beat.
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Cash Flow Outlook Maintained
Management maintained adjusted operating cash flow guidance at a $1,085 million midpoint and expects approximately $750 million of adjusted free cash flow for 2026.
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Maintenance Capex Quantified
The company expects $335 million of 2026 maintenance capital expenditures, implying maintenance capex equal to approximately 31% of the $1,085 million adjusted operating cash flow midpoint.
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Continued Share Repurchases
SCI repurchased 656,327 shares under its publicly announced program during the quarter, leaving approximately $498.8 million available for further repurchases at September 30, 2026.
What to watch
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Underlying Earnings Miss
Adjusted EPS of $0.97 missed the $0.99 consensus estimate by $0.02, signaling pressure on underlying profitability despite reported GAAP EPS of $1.03.
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Trust Investment Market Risk
The 10-Q states that trust-fund investments are sensitive to market prices; investment performance can affect results, while the prior analysis identified negative trust-fund returns as a headwind.
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Material Maintenance Capex
The company’s 2026 outlook includes $335 million of maintenance capital expenditures against a $1,085 million adjusted operating cash flow midpoint, limiting cash conversion flexibility.
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Lowered 2026 Earnings Outlook
Management’s fourth-quarter adjusted EPS outlook is $1.10-$1.20 and full-year adjusted EPS guidance is $3.94-$4.04; the outlook was described as a cut in recent reporting, increasing execution risk for the remainder of 2026.
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Capital Allocation Flexibility
The filing reports 658,460 total share purchases during Q3, including 656,327 under the public program, while approximately $498.8 million remained authorized; continued buybacks could compete with debt reduction or other capital needs.
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No New Risk-Factor Disclosure
There were no material changes to the risk factors from the December 31, 2025 Form 10-K, so the filing does not identify a newly added or materially revised principal risk.
Management's outlook
The company updated fourth-quarter 2026 adjusted EPS guidance to $1.10-$1.20 and reported full-year adjusted EPS guidance of $3.94-$4.04. Adjusted operating cash flow guidance was maintained at a $1,085 million midpoint, with $335 million of maintenance capital expenditures and approximately $750 million of adjusted free cash flow expected.
Earlier filings 4
10-K · February 12, 2026
Service Corporation International (SCI) presents a scale-driven strategy centered on leveraging its Dignity Memorial® network, preneed backlog conversion, and product/service innovation to drive revenue. The company…
10-Q · November 2, 2023
SCI reported Q3 revenue of $1,001,859,000, up $24,139,000 (2.5%) versus Q3 2022, with gross profit of $253,683,000 and operating income of $223,012,000. Diluted EPS was $0.80 (vs $0.76 a year ago). Preneed receivables…
10-Q · May 2, 2023
SCI reported first-quarter revenue of $1,028,709,000, down $83,694,000 versus $1,112,403,000 in Q1 2022, with substantial margin compression and EPS decline. Gross profit fell to $289,094,000 and operating income to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.