Service Corporation International (SCI) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 5% YoY to $1,107.3M; diluted EPS was $1.03 reported and $0.97 adjusted, versus $0.83 and $0.87, respectively, a year earlier.

• Higher Funeral and Cemetery profits, lower G&A and fewer diluted shares supported earnings; healthcare, selling compensation and marketing costs pressured margins.

• Strong preneed production and cash flow supported investment and shareholder returns, while lower Funeral volumes and deferred Cemetery revenue recognition weighed on the outlook.

Financial highlights

• Q3 operating income was $252.9M versus $226.4M; net income attributable to common stockholders was $141.3M versus $117.5M.

• Adjusted operating cash flow was $296.9M versus $267.9M; free cash flow was $217.4M versus $181.9M.

• Nine-month revenue was $3,307.0M versus $3,197.7M; adjusted diluted EPS was $2.84 versus $2.71 and reported diluted EPS was $2.90 versus $2.68.

• Q3 reported EPS included $11.2M in net gains on divestitures and impairment charges, versus a $0.4M net loss in Q3 2025.

Outlook and guidance

• FY2026 adjusted EPS guidance is $3.94–$4.04, midpoint $3.99, below the original $4.20 midpoint; Q4 adjusted EPS outlook is $1.10–$1.20.

• FY2026 adjusted operating cash flow guidance is $1,055M–$1,115M, midpoint $1,085M; adjusted free cash flow guidance remains $750M.

• FY2026 maintenance capital expenditure guidance is $335M and cash taxes are estimated at $120M; FY effective tax rate guidance remains 25%–26%.

• FY2026 Cemetery preneed sales production is expected to grow 6%–7%; Funeral volume is projected about 200 bps below initial expectations. For 2027, comparable Funeral volumes are expected flat to slightly higher, with no formal guidance issued.