SEI Investments (SEIC) opened 2026 with Q1 revenue of US$622.2 million and basic EPS of US$1.43, set against trailing twelve month revenue of US$2.4 billion and EPS of US$6.01. Over recent quarters, revenue has moved from US$551.3 million in Q1 2025 to US$622.2 million in Q1 2026, while quarterly basic EPS has shifted from US$1.20 to US$1.43. This provides a clearer view of how profitability is tracking into the new year. With net profit margins in the data improving over the past year, this latest result highlights an earnings profile that reflects both efficiency and top line progress.

See our full analysis for SEI Investments.

With the headline numbers on the table, the next step is to see how they line up with the dominant stories around growth, quality, and risk that investors have been using to frame SEI Investments.

Margins Support 22.8% Earnings Growth

• Over the last 12 months, earnings grew 22.8% while the net profit margin sat at 31.2% compared to 27.8% a year earlier, which lines up with Q1 2026 net income of US$174.5 million on US$622.2 million of revenue.
• Consensus narrative links this margin profile to heavy spending on technology and talent, yet:
  • Trailing twelve month net income of US$738.3 million on US$2.4b of revenue shows margins holding at roughly 31%, even as the narrative points to ongoing investment potentially weighing on profitability.
  • Q1 2026 EPS of US$1.43 sits within a trailing twelve month EPS base of US$6.01, which suggests recent spending has not prevented earnings from reaching higher levels than a year ago.

P/E Of 14.8x Versus 42.4x Industry

• SEI trades at a trailing P/E of 14.8x compared with a 42.4x average for the US Capital Markets industry and 16.2x for peers. The current share price of US$91.05 sits below a DCF fair value of about US$136.66.
• Bulls point to this gap as evidence of opportunity, yet the fundamentals in the data cut both ways:
  • Forecast earnings growth of about 7.2% a year and revenue growth of about 6.1% a year are slower than the referenced US market, which challenges the bullish idea that the lower P/E alone should close quickly.
  • On the other hand, a 22.8% one year earnings increase paired with a P/E under both peers and industry heavily supports the bullish claim that the current valuation already reflects some of that slower forward growth.

Bulls argue these numbers leave room for upside if SEI keeps converting revenue into profit at current margins, while the market prices in slower growth than many peers. 🐂 SEI Investments Bull Case

Insider Selling Versus Bearish Concerns

• Recent data flags significant insider selling over the past 3 months as a risk, at the same time that trailing twelve month earnings reached US$738.3 million and EPS reached US$6.01.
• Bears often tie insider selling to caution on the outlook, but the reported figures complicate that view:
  • Net margin moving from 27.8% to 31.2% and Q1 2026 net income of US$174.5 million follow a year where earnings grew 22.8%, which challenges a bearish idea that fundamentals are weakening in step with insider activity.
  • Expected earnings growth of about 7.2% annually is slower than the market but still positive, so insider selling here coincides with ongoing profit growth rather than a reported collapse in earnings.

Skeptics warn that insider selling can be an early red flag, yet the current mix of solid margins and slower, but still positive, growth keeps the cautious case focused on future execution rather than any deterioration in the latest numbers. 🐻 SEI Investments Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for SEI Investments on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

That combination of strong margins, valuation debate and insider activity leaves a lot for you to weigh, so consider the latest figures while they are still fresh in mind and check the 3 key rewards and 1 important warning sign

See What Else Is Out There

SEI Investments combines strong recent earnings with slower forecast growth than the wider market and insider selling that keeps some investors cautious about future upside.

If slower projected growth and insider selling leave you wanting a wider set of ideas, compare this setup with companies highlighted in the 54 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.