Service Corporation revenue rises 5% to $1,107.3 million in third quarter
Key Facts
Service Corporation International reported a 5% increase in consolidated revenue, or $49.2 million, to $1,107.3 million in the third quarter of 2026, compared with $1,058.1 million in the same period a year earlier. Operating income rose to $252.9 million from $226.4 million. Diluted GAAP EPS increased to $1.03 from $0.83, while adjusted EPS rose to $0.97 from $0.87. Results grew alongside higher comparable revenue in both the funeral and cemetery segments. But the company lowered its full-year earnings outlook, citing funeral volumes below its original expectations and costs that remained elevated.
In the funeral segment, comparable revenue rose 3.3% to $588.2 million, from $569.5 million a year earlier. The segment’s core revenue increased 2.3%, with average core revenue per service up 2.8%. By contrast, the number of core services fell 0.5%, showing that core revenue growth came from higher returns per service despite a slight decline in service volume. Chief Executive Thomas Ryan said higher average revenue per service and stable funeral service volumes supported the segment’s performance. In cemeteries, comparable revenue grew 4.0% to $503.4 million, compared with $484.0 million in the third quarter of 2025.
Ryan linked cemetery revenue growth to property revenue and to merchandise and services recognized from preneed sales. The company said advertising and marketing spending to support preneed sales weighed on margins, along with higher health care costs and sales compensation. It said these expenses are expected to remain elevated in the fourth quarter. These factors put revenue growth against the cost of supporting sales and operations; cemetery performance includes revenue recognized from earlier preneed sales, while marketing expenses tied to those sales continue. The company also said funeral volumes below its original estimates contributed to the reduction in its full-year earnings outlook.
The company expects adjusted EPS of between $1.10 and $1.20 in the fourth quarter and lowered its 2026 outlook range to $3.94–$4.04 per share. It maintained its full-year adjusted operating cash flow outlook at a midpoint of $1,085 million. The company said the earnings outlook revision reflects funeral volumes below original expectations, as well as continued elevated health care costs, sales compensation, advertising and marketing. In trading on October 28, SCI shares closed at $82.33, according to EL7 data. A Reuters-labeled report published on October 29 said the shares fell 12.94% to $71.68 in after-hours trading following the results announcement and outlook cut.