$SCI · SERVICE CORP INTERNATIONAL
Service Corporation International filed its Q3 2026 10-Q, reporting net income of $141.3M ($1.03 per diluted share) on revenue of $1.107B, up 4.6% year-over-year. Funeral revenue grew 5.0% to $602.6M and cemetery revenue rose 4.3% to $504.6M. Comparable funeral services performed were flat at 83,638 versus 83,686 in Q3 2025.
- Q3 GAAP EPS of $1.03 vs $0.83 in Q3 2025, a 24% increase year-over-year.
- Q3 revenue rose 4.6% YoY to $1.107B, with funeral revenue up 5.0% and cemetery revenue up 4.3%.
- Comparable funeral services performed were essentially flat at 83,638 vs 83,686 in the prior-year quarter.
- Q3 included $11.2M in pre-tax gains on divestitures and impairment charges, net.
- Funeral gross profit margin was 17.4% (104.9M/602.6M); cemetery gross profit was $147.6M on $504.6M revenue.
Despite a clean EPS beat ($1.03 vs $0.83 prior year) and 4.6% revenue growth, SCI shares fell 10.71% to $73.51 in the regular session. The selloff suggests the market may have been disappointed by flat funeral volumes (83,638 vs 83,686) and margin pressure from higher healthcare costs, selling compensation, and preneed sales initiative spending.
A 24% EPS beat paired with a 10.7% single-day selloff signals the market is focused on flat volumes and cost inflation, not headline earnings growth.
SCI remains the largest North American deathcare operator. Flat comparable funeral volumes despite an aging demographic tailwind raise questions about cremation mix shift and market share dynamics in the sector.
Higher healthcare costs, selling compensation, and costs tied to targeted sales initiatives supporting higher preneed production offset gross profit gains. Foreign currency translation adjustments swung to a $15.8M loss over nine months vs a $13.0M gain in the prior-year period.