SCI earnings analysis
What we found in SCI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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 10% increase in comparable cemetery preneed sales, while operating cash flow increased by 7% year-over-year. Management maintains a focus on long-term growth despite recent fluctuations in funeral service volumes.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Exceeded Expectations
- Reported revenue for Q1 2026 was $1.097 billion, slightly above the estimate of $1.096 billion.
- Comparable Preneed Sales Growth
- Comparable cemetery preneed sales increased significantly by 10% in the reported quarter.
- Operating Cash Flow Growth
- Operating cash flow for Q1 2026 was $333.8 million, up 7% from $311.1 million in Q1 2025.
- Stable Gross Margin
- Gross margin remained relatively stable at 27.1%, compared to 27.0% in Q1 2025.
- Increased Share Repurchases
- SCI repurchased 1.789 million shares for $144.4 million, averaging $80.69 per share.
- High Backlog of Preneed Contracts
- The backlog of deferred revenue reached $17.1 billion as of March 31, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Missed EPS Expectations
- EPS was reported at $0.97, missing the estimate of $1.01, reflecting potential pressures on profitability.
- Fluctuating Funeral Service Volumes
- Management acknowledges recent fluctuations in funeral service volumes, which could impact revenues.
- Increasing Operating Costs
- Rising employee compensation and cost pressures may affect future operating margins.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.97
- Gross margin
- 27.1%
What they said about what is next.
Outlook remains focused on long-term growth strategies, no numeric guidance provided.
The filing reads about the same as the one before it.
What came before.
- 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…
- 10-K · February 15, 2023
- SCI presents itself as North America’s largest deathcare provider with a nationwide footprint (1,474 funeral service locations and 490 cemeteries) and a large preneed backlog of $13.7 billion. The 10‑K emphasizes a…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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