Service Corporation International Reports Mixed Q1 Results with EPS Miss, Reaffirms Full-Year 2026 Guidance
Summary
Service Corporation International reported Q1 adjusted EPS of $0.97, missing analyst estimates, but reaffirmed its full-year 2026 guidance and showed strong cash flow growth.
Key Events
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Q1 Adjusted EPS Misses Estimates
The company reported adjusted diluted earnings per share of $0.97 for Q1 2026, falling short of analyst expectations of $1.005.
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Strong Cash Flow Growth
Adjusted net cash provided by operating activities increased 6% to $334.5 million in the first quarter compared to the prior year.
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Full-Year Guidance Reaffirmed
Management confirmed its previously reported 2026 outlook, maintaining the diluted EPS guidance range of $4.05 - $4.35, indicating confidence in future performance.
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Mixed Segment Performance
Comparable cemetery preneed sales production increased 10%, contributing to a 7.1% rise in comparable cemetery revenue, while comparable funeral service volumes declined 6%.
Analysis
Service Corporation International reported first-quarter adjusted EPS of $0.97, which slightly missed analyst expectations of $1.005. Despite this, the company demonstrated strong operational cash flow, with adjusted cash from operating activities increasing 6% year-over-year to $334.5 million. Crucially, management reaffirmed its full-year 2026 diluted EPS guidance of $4.05 - $4.35, signaling confidence in its ability to meet annual targets despite the Q1 miss. The results showed mixed segment performance, with the cemetery segment delivering strong preneed sales growth, which helped offset a decline in comparable funeral service volumes.
At the time of this filing, SCI was trading at $85.87 on NYSE in the Trade & Services sector, with a market capitalization of approximately $12B. The 52-week trading range was $74.14 to $88.67. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.