KKR & Co. Inc. (KKR Quick QuoteKKR - Free Report) is slated to report second-quarter 2025 results on July 31, before the opening bell. Its earnings and revenues in the quarter are expected to have increased on a year-over-year basis.

In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate. Results primarily reflected impressive growth in assets under management (AUM) and record transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.

The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in each of the trailing four quarters, with the average beat being 6.62%.

Q2 Earnings & Sales Estimates for KKR

The Zacks Consensus Estimate for earnings is pegged at $1.17 per share, which has been revised marginally upward over the past seven days. The figure indicates an increase of 7.3% from the year-ago quarter’s reported number.

The consensus estimate for sales is pegged at $1.28 billion, indicating 15.4% growth.

Key Factors & Estimates for KKR in Q2

KKR has been witnessing increases in fee-earning AUM and total AUM, driven by its diversified product and revenue mix, superior position in the alternative investments space and net inflows. Given the high market volatility and increased client activity in the second quarter amid uncertainties surrounding tariff policy, KKR is expected to have recorded a rise in AUM balance as inflows grew.

The Zacks Consensus Estimate for AUM is pegged at $682.7 billion, suggesting a rise of 13.5% from the prior-year quarter. Likewise, the consensus estimate for fee-paying AUM is pegged at $554.4 billion, which indicates an increase of 13.8%.

The Zacks Consensus Estimate for management fees (segment revenues) for the to-be-reported quarter is pegged at $964.4 million, suggesting growth of 13.8% from the prior-year quarter. The consensus estimate for fee-related performance revenues (segment revenues) of $45.7 million implies an increase of 23%.

Additionally, KKR expects profits from deal exits to have been decent in the to-be-reported quarter. The company’s preliminary estimate, between April 1 and June 20, 2025, for total realized performance income and net realized investment income is more than $475 million, implying an increase from $240.6 million in the prior year quarter.

Talking about expenses, KKR is likely to have experienced elevated expenses in the to-be-reported quarter due to higher employee compensation and benefits, along with increased investment in technological development to align with changing customer needs.

What Our Model Predicts for KKR

According to our quantitative model, the chances of KKR beating the Zacks Consensus Estimate for earnings this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for KKR is -0.64%.

Zacks Rank: The company currently carries a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Finance Stocks Worth Considering

Here are a couple of finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:

The Earnings ESP for UBS Group AG (UBS Quick QuoteUBS - Free Report) is +30.81%, and it carries a Zacks Rank #3 at present. The company is slated to report second-quarter 2025 results tomorrow.

Over the past week, the Zacks Consensus Estimate for UBS’ quarterly earnings has been revised 22.8% upward to 70 cents per share.

Tradeweb Markets (TW Quick QuoteTW - Free Report) is also scheduled to release second-quarter 2025 numbers tomorrow. The company has an Earnings ESP of +0.24% and carries a Zacks Rank #3 at present.

Quarterly earnings estimates for TW have remained unchanged at 86 cents per share over the past week.