As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at data & business process services stocks, starting with SS&C (NASDAQ: SSNC).

A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.

The 10 data & business process services stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was 0.6% below.

Thankfully, share prices of the companies have been resilient as they are up 5.4% on average since the latest earnings results.

SS&C (NASDAQ: SSNC)

Founded in 1986 as a bridge between technology and financial services, SS&C Technologies (NASDAQ: SSNC) provides software and software-enabled services that help financial firms and healthcare organizations automate complex business processes.

SS&C reported revenues of $1.54 billion, up 5.9% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ full-year EPS guidance estimates.

“SS&C reported record adjusted revenues of $1,537.8 million and record adjusted consolidated EBITDA surpassing $600 million,” says Bill Stone, Chairman and Chief Executive Officer. “We are bullish on our opportunity across the globe in Europe, the Middle East, and Australia, and expect strong performance through the second half of the year. Additionally, we’re excited about what the Calastone acquisition brings — access to new geographies, ETF and Digital Asset capabilities, and cross-sell opportunity.”

Interestingly, the stock is up 7.2% since reporting and currently trades at $89.69.

Is now the time to buy SS&C? Access our full analysis of the earnings results here, it’s free.

Best Q2: Planet Labs (NYSE: PL)

Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE: PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.

Planet Labs reported revenues of $73.39 million, up 20.1% year on year, outperforming analysts’ expectations by 11.2%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and full-year revenue guidance exceeding analysts’ expectations.

Planet Labs delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 69.3% since reporting. It currently trades at $11.09.

Is now the time to buy Planet Labs? Access our full analysis of the earnings results here, it’s free.

Broadridge (NYSE: BR)

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE: BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Broadridge reported revenues of $2.07 billion, up 6.2% year on year, in line with analysts’ expectations. It was a slower quarter as it posted revenue guidance for next quarter roughly in line with analysts’ expectations.

As expected, the stock is down 2.8% since the results and currently trades at $241.60.

Read our full analysis of Broadridge’s results here.

Verisk (NASDAQ: VRSK)

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ: VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Verisk reported revenues of $772.6 million, up 7.8% year on year. This number met analysts’ expectations. More broadly, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ full-year EPS guidance estimates.

Verisk had the weakest performance against analyst estimates among its peers. The stock is down 17% since reporting and currently trades at $244.09.

Read our full, actionable report on Verisk here, it’s free.

CoStar (NASDAQ: CSGP)

With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ: CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K.

CoStar reported revenues of $781.3 million, up 15.3% year on year. This print surpassed analysts’ expectations by 1.2%. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ EPS guidance for next quarter estimates.

The stock is up 1.2% since reporting and currently trades at $86.04.

Read our full, actionable report on CoStar here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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