SCI NYSE Russell 1000 Earnings call
Service Corporation International (SCI) · Q2 2026 results and valuation
Share price: $75.40 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 30 Apr 2026
Net income down 8.1% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−8.1%
Net income vs Q1 2026
Outlook given
Net income 124.8M vs 135.8M
Revenue +0.6%
2 · How management spoke
Typical
More upbeat than 62% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Key theme
Earnings per share increased to $0.90 from $0.88 in the prior year, supported by higher cemetery revenue and lower general and administrative…
Valuation
Is Service Corporation International undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 1.6% growth a year (3-year revenue growth), the model's fair value is $14.99 a share — the stock trades 403% above it. Today's price assumes 12.1% growth a year.
Current price
$75.40
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+12.1% for 10 yrs
Fair value / share
$14.99
Buy below
$11.24
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
Revenue guidance reflects continued growth in average revenue per service as older preneed contracts mature out of backlog.
Source quote
“We expect this impressive growth in the average revenue per service to continue as older preneed contracts that are maturing out of our backlog have higher cumulative trust...”
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Guidance
The company expects higher 90 percentages in the back half of this year, indicating an updated outlook for the remainder of the year.
Source quote
“We expect to have higher 90 percentages, if you will, in the back half of this year.”
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Fading
Management maintains positive momentum as the 10% figure represents a high step in focusing the team on specific KPIs.
Source quote
“But we do still feel very good about our momentum. 10% is high step in it. Jay has got the team really focused on KPIs in the 4 of those.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“As we enter the back half of 2026, we believe we are poised to deliver solid revenue growth as well as margin expansion in both the Funeral and Cemetery segments...”
“In closing, we remain firmly focused on building long-term value for shareholders, growing revenue, leveraging the strength of our scale, and allocating capital with discipline to the highest and best...”
“This core average growth was achieved despite a modest increase of 60 basis points in the core cremation rate.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.10B | 1.10B | +0.6% | 1.07B | +3.6% |
| Gross profit | 273.5M | 286.5M | −4.5% | 271.4M | +0.8% |
| Operating income | 231.6M | 243.8M | −5.0% | 224.5M | +3.2% |
| Net income | 124.8M | 135.8M | −8.1% | 122.9M | +1.6% |
| EPS | 0.90 | 0.97 | −7.2% | 0.86 | +4.7% |
| P/E today 19.8 | 19.8 | 21.8 | −2.0 | 22.1 | −2.3 |
Topics
Most discussed now
- Remember, Service Corporation International has about $8 billion or so plus of trust funds, about $2.5 billion is in the internal care...
- Comparable preneed cemetery sales production grew by 8% and comparable preneed funeral sales production grew by 7% for the quarter,...
- Funeral revenues grew marginally where profitability declined somewhat offsetting the favorable impacts, resulting in a $0.02 increase in…
- Service Corporation International generated impressive adjusted operating cash flow of about $239 million.
- Operating income produced cash flow that was about higher by about $7 million.
Faded since Q1 2026
- Fading Service Corporation International feels, number one, that it's not a market share issue, and therefore, it believes it will bounce back.
- Fading It sounds like that maybe Service Corporation International is a little bit better than what some of the other figures that are out...
- Fading This unfavorable impact from funeral volume decline was partially offset by a healthy 3.5% growth in the core average revenue...
- Fading This was partially offset by above-inflation growth in fixed cemetery maintenance costs.
Latest announcements
Official filings, newest first.
- Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Articles or bylaws amended · SEC 8-K
- Shareholder vote results · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K