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Carlyle Shares Decline as Q3 Earnings Miss Estimates, AUM Rises Y/Y

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Key Takeaways

  • Carlyle's Q3 EPS of 96 cents missed estimates but inched up from 95 cents a year earlier.
  • Segmental revenues fell 12.6% y/y, while realized performance revenues plunged 77.6%.
  • Total AUM rose 5.9% y/y to $474.1 billion, driven by higher fee-earning assets.

Shares of The Carlyle Group Inc. (CG - Free Report) fell 5.8% during Friday’s trading session as third-quarter 2025 post-tax distributable earnings per share of 96 cents missed the Zacks Consensus Estimate of 99 cents. The figure compared favorably with earnings of 95 cents per share in the year-ago quarter.

Results were affected by declines in segmental revenues and realized performance revenues. Also, net income declined significantly from the prior-year quarter. However, the decline in expenses was positive. Also, a rise in assets under management (AUM) was a tailwind.

Net income attributable to Carlyle was $0.9 million compared with $595.7 million in the year-ago quarter.

Carlyle’s Revenues & Expenses Decline

Third-quarter segmental revenues were $782.5 million, down 12.6% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $942 million.

Total segment fee revenues were up 10.8% year over year to $653.7 million. An increase in transaction and portfolio advisory fees, as well as fee-related performance revenues, led to the rise.

Realized performance revenues fell 77.6% from the year-ago quarter to $61.7 million.

Total segmental expenses fell 21.6% year over year to $414.1 million.

CG’s Total AUM Rises

As of Sept. 30, 2025, total AUM was $474.1 billion, up 5.9% from the prior-year quarter.

The fee-earning AUM was $332 billion, which rose 2.7% year over year.

Carlyle’s Capital Distribution Activities

In the reported quarter, CG repurchased or withheld 3.3 million shares of common stock for $0.2 billion. As of Sept. 30, 2025, $0.4 billion worth of shares were available under the authorization.

The company also declared a quarterly dividend of 35 cents per share. The dividend will be paid out on Nov. 19, 2025, to shareholders of record as of Nov. 10, 2025.

Our View on CG

A rising total AUM balance, along with efforts to expand its investment platforms, will likely support Carlyle’s revenue growth in the long run. Further, the competitive financial environment, along with the volatile macroeconomic backdrop, is concerning.

Carlyle Group Inc. Price, Consensus and EPS Surprise

 

CG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Asset Managers

Lazard Inc.’s (LAZ - Free Report) third-quarter 2025 adjusted earnings per share of 56 cents beat the Zacks Consensus Estimate of 41 cents. This compared favorably with earnings of 38 cents in the year-ago quarter.

Lazard’s results were positively impacted by increases in revenues in the financial advisory, asset management, and corporate sectors. A rise in the assets under management balances was another positive. However, elevated operating expenses acted as spoilsports.

BlackRock’s (BLK - Free Report) third-quarter 2025 adjusted earnings of $11.55 per share handily surpassed the Zacks Consensus Estimate of $11.25. The figure reflects a marginal rise from the year-ago quarter.

BLK’s results benefited from a rise in revenues. The AUM balance witnessed robust growth, reaching a record high of $13.46 trillion, driven by net inflows. However, higher expenses acted as a headwind.


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