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Ares Management Q1 Earnings Lag Estimates, Stock Up as AUM Rises Y/Y
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Key Takeaways
ARES posted after-tax realized income per share of $1.24, missing estimates but rising from $1.09 a year ago.
ARES' fee-paying AUM rose 19.2% Y/Y to $399.6B and total AUM climbed 18% to $644.3B.
ARES' revenues jumped 43.7% to $1.29B, but expenses rose 15.2%; declared $1.35 quarterly cash payout.
Ares Management Corporation’s (ARES - Free Report) first-quarter 2026 after-tax realized income per share of $1.24 missed the Zacks Consensus Estimate of $1.32. However, the bottom line increased from $1.09 in the prior-year quarter.
Results were affected by an increase in expenses. Nevertheless, higher revenues and assets under management (AUM) provided some support. In light of these positives, the company’s shares gained nearly 1.2% in the early trading session. A full day’s trading session will provide a clearer picture.
Net income attributable to the company (GAAP basis) was $142.6 million compared with the $47.2 million in the year-ago quarter.
ARES’ Revenues & Expenses
The company's total revenues rose 43.7% year over year to $1.29 billion. However, it missed the Zacks Consensus Estimate of $1.32 billion.
The company’s total expenses increased 15.2% year over year to $1.17 billion from the year-ago quarter. This rise was primarily due to an increase in all the components.
Ares Management’s AUM Balance
The company’s fee-paying AUM increased 19.2% on a year-over-year basis to $399.6 billion. The perpetual capital AUM rose 39.1% year over year to $215.3 billion.
As of March 31, 2026, total AUM was $644.3 billion, up 18% from a year ago. The rise was primarily driven by commitments to drawdown funds, capital raised across perpetual vehicles, the acquisition of BlueCove and additional managed assets from the insurance platform.
ARES’ Liquidity Position
As of March 31, 2026, Ares Management had $568.8 million of cash and cash equivalents and $2.9 billion in debt.
Ares Management’s Capital Distribution Update
The company announced a quarterly cash distribution of $1.35 per share with its earnings release. This dividend will be paid out on June 30, 2026, to shareholders of record as of June 16.
ARES’ Recent Developments
On Feb. 3, 2026, Ares Management completed the acquisition of the entire outstanding share capital of BlueCove Limited, a London-based systematic fixed-income manager, to launch a newly created strategy, Ares Systematic Credit.
The integrated BlueCove business now operates within the Ares Credit Group. It expands ARES’ capabilities in systematic fixed-income investing, leveraging proprietary technology and data-driven portfolio management across high-yield, investment-grade corporates, convertible bonds and other liquid credit instruments.
Our Viewpoint on Ares Management
Ares Management continues to benefit from strong AUM growth across fee-paying and perpetual capital platforms, supported by steady capital inflows and strategic acquisitions such as BlueCove and GCP International. However, elevated expenses are likely to weigh on near-term profitability.
Ares Management Corporation Price, Consensus and EPS Surprise
Invesco’s (IVZ - Free Report) first-quarter 2026 adjusted earnings of 57 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line increased 29.5% from the prior-year quarter.
The results primarily benefited from an increase in adjusted revenues and growth in AUM balance. An increase in adjusted expenses was a headwind for IVZ.
Blackstone’s (BX - Free Report) first-quarter 2026 distributable earnings of $1.36 per share surpassed the Zacks Consensus Estimate of $1.33. The figure rose 25% from the prior-year quarter.
The results benefited from a rise in assets under management and higher revenues. An increase in GAAP expenses was the undermining factor.
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Ares Management Q1 Earnings Lag Estimates, Stock Up as AUM Rises Y/Y
Key Takeaways
Ares Management Corporation’s (ARES - Free Report) first-quarter 2026 after-tax realized income per share of $1.24 missed the Zacks Consensus Estimate of $1.32. However, the bottom line increased from $1.09 in the prior-year quarter.
Results were affected by an increase in expenses. Nevertheless, higher revenues and assets under management (AUM) provided some support. In light of these positives, the company’s shares gained nearly 1.2% in the early trading session. A full day’s trading session will provide a clearer picture.
Net income attributable to the company (GAAP basis) was $142.6 million compared with the $47.2 million in the year-ago quarter.
ARES’ Revenues & Expenses
The company's total revenues rose 43.7% year over year to $1.29 billion. However, it missed the Zacks Consensus Estimate of $1.32 billion.
The company’s total expenses increased 15.2% year over year to $1.17 billion from the year-ago quarter. This rise was primarily due to an increase in all the components.
Ares Management’s AUM Balance
The company’s fee-paying AUM increased 19.2% on a year-over-year basis to $399.6 billion. The perpetual capital AUM rose 39.1% year over year to $215.3 billion.
As of March 31, 2026, total AUM was $644.3 billion, up 18% from a year ago. The rise was primarily driven by commitments to drawdown funds, capital raised across perpetual vehicles, the acquisition of BlueCove and additional managed assets from the insurance platform.
ARES’ Liquidity Position
As of March 31, 2026, Ares Management had $568.8 million of cash and cash equivalents and $2.9 billion in debt.
Ares Management’s Capital Distribution Update
The company announced a quarterly cash distribution of $1.35 per share with its earnings release. This dividend will be paid out on June 30, 2026, to shareholders of record as of June 16.
ARES’ Recent Developments
On Feb. 3, 2026, Ares Management completed the acquisition of the entire outstanding share capital of BlueCove Limited, a London-based systematic fixed-income manager, to launch a newly created strategy, Ares Systematic Credit.
The integrated BlueCove business now operates within the Ares Credit Group. It expands ARES’ capabilities in systematic fixed-income investing, leveraging proprietary technology and data-driven portfolio management across high-yield, investment-grade corporates, convertible bonds and other liquid credit instruments.
Our Viewpoint on Ares Management
Ares Management continues to benefit from strong AUM growth across fee-paying and perpetual capital platforms, supported by steady capital inflows and strategic acquisitions such as BlueCove and GCP International. However, elevated expenses are likely to weigh on near-term profitability.
Ares Management Corporation Price, Consensus and EPS Surprise
Ares Management Corporation price-consensus-eps-surprise-chart | Ares Management Corporation Quote
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of ARES’ Peers
Invesco’s (IVZ - Free Report) first-quarter 2026 adjusted earnings of 57 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line increased 29.5% from the prior-year quarter.
The results primarily benefited from an increase in adjusted revenues and growth in AUM balance. An increase in adjusted expenses was a headwind for IVZ.
Blackstone’s (BX - Free Report) first-quarter 2026 distributable earnings of $1.36 per share surpassed the Zacks Consensus Estimate of $1.33. The figure rose 25% from the prior-year quarter.
The results benefited from a rise in assets under management and higher revenues. An increase in GAAP expenses was the undermining factor.