Good morning, and welcome to the SS&C Technologies Holdings, Inc. Annual Meeting of Shareholders. I would now like to introduce Bill Stone.
Good morning, everyone, and on behalf of SS&C's Board of Directors and Management Team, welcome to our 2026 Annual Meeting of Stockholders. I'm Bill Stone, Chairman of the Board of Directors and Chief Executive Officer of the company. We appreciate you joining us today in this virtual format, which allows us to engage with our global shareholder base efficiently and transparently. Our board is made up of leaders in finance, financial services, risk management, and operations, ensuring we have the strategic oversight necessary to drive long-term growth. I'm pleased to introduce our board, Normand Boulanger, Smita Conjeevaram, Jonathan Michael, Francesco Vanni d'Archirafi, David Varsano, Debra Walton-Ruskin, and Michael Zamkow. We have other members of the company's management team in attendance with us today, including Rahul Kanwar, President and Chief Operating Officer, Brian Schell, Executive Vice President and Chief Financial Officer, and Jason White, Senior Vice President and General Counsel.
Joining us at today's meeting are representative PricewaterhouseCoopers, which is SS&C's independent registered public accounting firm. Before we commence the formal portion of the meeting, I would like to touch on two housekeeping matters. First, if you are a shareholder of SS&C and wish to submit a question, please use the chat box located at the bottom left of your screen. Please ensure you are logged in with your unique control number so your question is registered. Following an overview of today's agenda, we have allocated 10-15 minutes to address shareholder questions specifically related to items of business before us today. For other questions about SS&C's general operations, or if your question is not reached during the session, please contact our investor relations department at investorrelations@sscinc.com, where we will provide a timely response.
Second, if you are a shareholder of SS&C that logged in using your unique control number, you can also vote your shares during the meeting by clicking on that Vote Here button on the bottom right-hand side of your screen. If you have already voted your shares, there is no need to vote again during today's meeting unless you would like to change your vote. The agenda for the meeting should be visible on the lower right-hand side of your screen, and a link to the rules of conduct is available under the Meeting Materials section of the screen. We intend to strictly follow the agenda and rules of conduct in conducting the business of this meeting. In accordance with the company's bylaws, a copy of the notice of annual meeting of stockholders proxy statement and form of proxy have been presented to all stockholders.
As chairman of the board of directors of the company, I have been provided with an affidavit from Broadridge Financial Services, establishing that notice of these meetings was duly provided to stockholders of record in accordance with the bylaws. The voting list of stockholders is available for inspection as provided by the company's bylaws. These documents will be filed with the corporate records of the company. As in the past, we'll start with the elements of the annual meeting. Once those are complete, I will close the annual meeting part of the presentation and move on to an update about our business and financial results, and then answer some of your questions. Before we proceed, a brief reminder that my remarks today will include forward-looking statements.
These are based on current expectations and are subject to risks and uncertainties, many of which are detailed in our most recent Form 10-K, which is on file with the Securities and Exchange Commission and available on our website. Actual results may differ materially from these forward-looking statements. SS&C has appointed Broadridge Financial Services to act as Inspector of Election for this meeting, and Tracy Oates, a representative of Broadridge, is participating in today's meeting. Ms. Oates has signed her oath of office, which will be filed with the records of this meeting. I have been informed by the Inspector of Elections that the holders of 219,556,498 shares of common stock of the company are present in person or by proxy. This represents approximately 91.2%, which constitutes a majority of the shares issued and outstanding shares of common stock of the company entitled to vote at this meeting.
Based on that report, I declare that a quorum is present and that this meeting is duly constituted and convened and is competent to proceed with the transaction of business. Mr. White, General Counsel, will serve as the secretary of the meeting and will prepare the minutes of the meetings. As indicated in the proxy statement, there are four proposals to be acted upon at this meeting. Proposal 1 is to elect the nominees as Class 1 directors for a term scheduled to expire at the 2029 annual meeting: Normand Boulanger, David Varsano, and Michael Zamkow. Proposal 2 is a vote to approve on an advisory basis the compensation of our named executive officers. Proposal 3 is to ratify the selection of PricewaterhouseCoopers LLP as our independent registered public accounting firm for fiscal year 2026. Proposal 4 is to approve the Third Amended and Restated 2023 Stock Incentive Plan.
Each of these proposals is more fully described in the proxy statement, and each is recommended by the board of directors. There are no other proposal to come before this meeting since management has not made any other proposal and no other proposal were submitted by stockholders in the manner prescribed in the company's bylaws, which require that certain information concerning stockholder proposals be provided to the company before the date of the meeting. The polls are open for voting on the four matters that have been presented. If you have already voted, you need not vote again at this meeting. If you have not voted or if you would like to change your vote, you may do so by clicking the Vote Here button on the bottom of the right-hand side of your screen.
After the annual meeting part of this presentation, I will answer questions submitted through the web portal relating to the items of business being voted on today. As a reminder, you must have logged in using your unique control number to submit a question. It is now 9:07 A.M. and the polls are open for voting. We will now pause for one minute to allow stockholders who wish to cast their votes to do so. Since all stockholders have had adequate time to vote, it is now 9:08 A.M. and I hereby declare that the polls are now closed. Mr. White, will you please present the preliminary results of the voting?
Thank you, Mr. Chairman. The preliminary results from the Inspector of Elections are as follows. With respect to proposal number 1, the election of our class 1 directors, a majority of the votes cast has been voted for the election of each of this year's nominees. With respect to proposal number 2, the advisory vote to approve of the compensation of our named executive officers, a majority of the votes cast has voted for the proposal. With respect to proposal number 3, the ratification of PricewaterhouseCoopers LLP as independent registered public accounting firm of the company for fiscal year 2026, a majority of the votes cast has voted in favor of the proposal. With respect to proposal number 4, the approval of the Third Amended and Restated 2023 Stock Incentive Plan, a majority of the votes cast has voted in favor of the proposal.
I turn the meeting back over to you, Mr. Chairman.
Thank you, Mr. White. Based on the preliminary report of the Inspector of Elections, each person nominated for election as director has been elected to serve as a director until the 2029 annual meeting. The advisory vote on the compensation of our named executive officers has been approved. The Audit Committee's selection of PricewaterhouseCoopers LLP as independent registered public accounting firm for fiscal year 2026 has been ratified. Stockholders have approved the Third Amended and Restated 2023 Stock Incentive Plan. These actions will be recorded as stated in the minutes of this meeting. This concludes the formal portion of today's meeting. Now I want to spend time discussing our financial performance and where SS&C is headed.
Please understand that there's a safe harbor statement that says that today we have some forward-looking statements and those statements may change materially and you can see the risk factors on our 10-Q and 10-K on our website as well as at the Securities and Exchange Commission. I'll go through a few slides to explain where we are and where we're going. Just for all of you to understand, SS&C is a leading provider of mission-critical AI-powered software and services that help financial services and healthcare organizations operate smarter, faster, and more securely. When you look at the company, we have over 40 years in business. We have over 200 products and services, 29,000 employees, over $6 billion in revenue, 23,000 clients, and we have $3 trillion in assets under administration for alternatives. We have representatives and offices in 35 countries.
We do a whole range of things for our people, for our clients, from trading and operations to distribution and reporting, compliance, analytics. We do it for a vast array of different types of financial services and healthcare companies, whether you're a wealth manager, you're a bank, insurance company, asset manager, you're in public or private markets, you're a hedge fund and healthcare companies. We're broad and we're deep and we think we have great opportunities. If you look at the different business units we have, our GIDS business, Global Investor and Distribution Services, represents about 25% of our revenue. It's a global transfer agency and investor servicing. We do brokerage solutions and retirement services in GIDS. Our GlobeOp hedge and private equity funds business is alternative fund service, hedge funds, private equity funds, private credit, hybrid funds, and a host of others.
We also offer class action services. Our wealth and investment technologies business is about 25% of our business, as is GlobeOp. This is financial software business focusing on asset management, alternatives, wealth, and insurance industries. We also have an Intelligent Automation and Analytics business, represents about 10% of our business, and we have things like Blue Prism and Algorithmics and other products and services in IAA. We also have SS&C Intralinks, which is a mergers and acquisition virtual data rooms, and we also have investor communication portals. Intralinks represents about 10% of our business, and we have SS&C Health, which is a pharmacy claims processing, a medical claims processing, and healthcare analytics, and that represents about 5%. We do believe that we are reshaping a number of these industries. We have tremendous amount of information that we deliver in a concise way to our clients.
We have 15% of the companies achieve major AI ROI, and all rely on proprietary data. We expect 600% increase in agentic AI adoption in finance by 2026. There are expectations of cost-based recapture or reduction for mid-size managers AI, and that's about 25%-40%. 65% of CFOs say that they are going to increase general artificial intelligence investment in 2025. We have done a number of strategic acquisitions. Just to name a few, we bought DST Systems in 2018, as well as Intralinks in 2018. We bought Innovest in 2020, and we bought Battea, I believe, in 2024. We also have recently bought Calastone. We spent over $1 billion for that. We bought that in 2025. We bought Blue Prism in 2022 for $1.6 billion, Algorithmics in 2019 for about $100 million, and Eze Software in 2018 for almost $1.5 billion.
We believe that AI is going to be a tailwind for us, not a headwind. The reason that we think so is that we have the data, the expertise, and the trust of our clients. We are a very secure company. We run our own private cloud. We have scale, 23,000 clients, 29,000 people, 35 countries, 200 products and services, and we have very powerful technology that we continue to invest heavily in. At SS&C, we spend a ton of money on R&D. We spent over $700 million in R&D in capitalized software in 2025. In our intelligent automation, we just rolled out something called Work HQ, which is our workflow orchestration layer for agentic automation. It connects AI agents, digital workers, core systems, and end-to-end workflows. We have an AI infrastructure with our own, like I said, private cloud.
We have AI Gateway that controls the use of AI in all of our products and services. We believe in automation first. We have deployed more than 3,500 digital workers, 50 AI agents, and we generate approximately $200 million in cost savings in our own business. Again, we're doing a lot of things across all of our different businesses. We are modernizing the health claims business in healthcare. In pharmacy claims, we are delivering a lot of technology in our wealth and investment management technologies, from trading systems and accounting systems to reporting. Our Intralinks business is an industry leader in virtual data rooms and also with delivering very secure data for M&A transactions. Our GIDS and GlobeOp businesses are also all both growing strongly and have really blue-chip clients across the world.
Our WorkHQ, which is in our analytics and investment automation, has gotten great reviews, and we're just rolling it out worldwide now. If you look at our numbers, we believe that they're pretty impressive. In Q1 2026, we did almost $1.65 billion in adjusted revenues. That's up from $1.514 billion in 2025, 8.8%. Adjusted operating earnings of $633.6 million, which is up from $575 million in 2025. $58 million, 10.1%. Adjusted consolidated EBITDA was $651 million in the first quarter of 2026. I think that's a record for any first quarter at SS&C, and that's up from $591 million in 2025, 10%. Our adjusted consolidated EBITDA margin was 39.5%, which is up from 39.1%, 40 basis points.
Operating cash flow for the first three months of March of 2026, $199.7 million, up from $272.2 million, 10.1%. Adjusted diluted earnings per share of $1.69, which is up from $1.48, $0.21, or 14.2%. We have a high margin business model. We have had for a long time. We really believe that when you have high margin business, you got to get sales. We have a very strong sales force, a lot of hard working women and men. We believe that that's one of our big strengths. If you look at our alternatives assets under administration, in Q1 of 2024, it was $2.4 billion. In Q1 of 2026, it was $2.981 billion. That's $581 billion added in two years. Very impressive. Again, our R&D spend in 2025 has gone from $500 million in 2021 to $729 million in 2025.
The percentage of revenues is 12%. 12% of $6.3 billion. The percentage of licensed maintenance and restated and related revenue is 69%. We generate lots of cash. We use our cash to buy back our shares, to pay down our debt, and methodically choose great acquisition targets that has really given us a lot of talented people and a lot of good software. We also pay a $0.27 and quarterly dividend. If you look at our capital allocation, 71% of our cash went towards repurchases in 2026, Q1. Our debt pay down was 27% were dividends, and we paid down 2% of our debt. Adjusted earnings per share over the years has been strong. In 2021, it was $5.02. In 2026, we expect it to be $1.90. Again, we are guiding our organic growth for 2026 at 5.3%, and we have new products.
We're going to improve customer retention. We're going to leverage our core competency. I think we will continue to have price dividends, and we will look at lift-outs if it's appropriate. We have a lot of confidence in our 2026 numbers. For Q2, we expect between $1.64 billion and $1.68 billion in revenue, organic growth of 5.6%. Our interest expense should be a little over $100 million. Adjusted income would be between $408 million and $424 million, and our adjusted earnings per share will be $1.64 to $1.70. Our diluted shares should be between 247 million and 250 million, and our effective income tax rate of 21.5%-23.5%. Our full year guidance expects $6,664 million to $6,824 million, and that is up 5.3% at the midpoint on organic growth. Our interest expense for the year will be approximately $400 million.
Our adjusted net income will be between $1.665 billion and $1.765 billion. Adjusted diluted earnings per share of $6.74 to $7.06, and the midpoint being $6.90. Our cash from operating activities will be between $1.713 billion and $1.813 billion, and our capital expenditures will be 4.4%-4.8% of our revenue. Diluted shares between 245.6 million and 251.6 million, and our effective income tax rate will be 21.5%-23.5%. I want to thank all of you that sat through this presentation and went to our annual general shareholders meeting. We have one shareholder question from Daniel Elgo.
I will read the question. Can you tell us more about how the Blue Prism acquisition has fit in with overall SS&C strategy and comment on the ongoing revenue and profitability attributed to this business unit?
We acquired Blue Prism in 2022. We're big believers in robotic process automation as well as artificial intelligence, machine learning, and natural language processing. We're a big fan of the technology that we got with Blue Prism and the talent that came with it, 1,400 very talented people. We have leveraged Blue Prism across our business with 3,500 digital workers deployed, and we're now making those digital workers into agentic AI agents. We're excited about what we have here and how we're able to deploy across our business. We have become what we call customer zero. We use WorkHQ in our own businesses, so we get to test it out on a very large and sophisticated business before we start selling it into our client base. Thank you for that question, and we look forward to having you come next year.
Thank you for participating in our annual meeting of stockholders. We appreciate your continued support and engagement. Thank you.
Thank you. The annual general meeting for SS&C Technologies Holdings, Inc. has now come to an end. Thank you for attending. You may now leave the virtual meeting.