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OWL shares rose 9.8% after Q1 earnings met estimates, with EPS up 12% y/y.
Blue Owl saw revenues climb 10% y/y on higher fees, while expenses increased due to compensation costs.
OWL's AUM grew 15% to $314.9B, driven by strong fundraising and $11B in new capital commitments.
Shares of Blue Owl (OWL - Free Report) gained 9.8% following the release of the company’s first-quarter 2026 results. Distributable earnings per share of 19 cents matched the Zacks Consensus Estimate. The figure reflects a rise of 12% from the prior-year quarter.
Results were primarily aided by an increase in revenues. Despite the concerns surrounding private credit, the company recorded robust fundraising (reflecting continued investor interest across its client channels and across its Credit, Real Assets and GP Strategic Capital platforms), which drove assets under management (AUM). However, higher expenses hurt the results to an extent.
Net income available to the company (GAAP basis) was $15.5 million, up significantly from $7.4 million in the prior-year quarter.
OWL’s Revenues Improve, Expenses Rise
Total GAAP revenues rose 10% year over year to $753.8 million. The rise was driven by an increase in management fees, and administrative, transaction and other fees. FRE revenues increased 13% from the prior-year quarter to $699.9 million. The Zacks Consensus Estimate for revenues was $698.6 million.
Total GAAP expenses increased 6% year over year to $644.3 million. The rise was due to an increase in compensation and benefits costs.
AUM Balance Increases
As of March 31, 2026, total AUM was $314.9 billion, up 15% year over year, primarily driven by capital raised, change in debt and appreciation across the business.
Fee-paying AUM of $188.4 billion as of March 31, 2026, increased 8% from the prior-year period. The increase was driven by capital raised across the business and deployment in Credit. Permanent Capital of $224.8 billion increased 15%.
In the reported quarter, the company raised $11 billion in new capital commitments.
Total equity fundraise of $9 billion in the quarter was driven by $4.1 billion in Credit, $4 billion in Real Assets and $0.9 billion in GP Strategic Capital.
OWL’s Balance Sheet Strong
As of March 31, 2026, Blue Owl had $190 million in cash and cash equivalents, and a revolving credit facility worth $1.1 billion.
At the end of the first quarter, debt obligations stood at $3.87 billion.
Share Repurchase Update
Blue Owl repurchased 1.7 million shares in the first quarter for $25 million.
Our Take on OWL
While Blue Owl’s performance in the first quarter of 2026 was solid, supported by strong fundraising, near-term pressure from private-credit liquidity strains and borrower quality worries is expected to remain a headwind for the company. Delayed fee ramp timing and elevated expenses may hurt the company’s financials.
Blue Owl Capital Inc. Price, Consensus and EPS Surprise
BlackRock’s (BLK - Free Report) first-quarter 2026 adjusted earnings of $12.53 per share handily surpassed the Zacks Consensus Estimate of $11.96. The figure reflects a 10.9% rise from the year-ago quarter.
Results benefited from a rise in revenues. The AUM balance witnessed robust year-over-year growth, driven by net inflows. However, higher expenses was a headwind for BLK.
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 grew 25% from the prior-year quarter.
BX’s results benefited from a rise in the AUM balance and higher revenues. However, an increase in GAAP expenses was the undermining factor.
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OWL Q1 Earnings Meet on Revenue & AUM Growth, Stock Gains 9.8%
Key Takeaways
Shares of Blue Owl (OWL - Free Report) gained 9.8% following the release of the company’s first-quarter 2026 results. Distributable earnings per share of 19 cents matched the Zacks Consensus Estimate. The figure reflects a rise of 12% from the prior-year quarter.
Results were primarily aided by an increase in revenues. Despite the concerns surrounding private credit, the company recorded robust fundraising (reflecting continued investor interest across its client channels and across its Credit, Real Assets and GP Strategic Capital platforms), which drove assets under management (AUM). However, higher expenses hurt the results to an extent.
Net income available to the company (GAAP basis) was $15.5 million, up significantly from $7.4 million in the prior-year quarter.
OWL’s Revenues Improve, Expenses Rise
Total GAAP revenues rose 10% year over year to $753.8 million. The rise was driven by an increase in management fees, and administrative, transaction and other fees. FRE revenues increased 13% from the prior-year quarter to $699.9 million. The Zacks Consensus Estimate for revenues was $698.6 million.
Total GAAP expenses increased 6% year over year to $644.3 million. The rise was due to an increase in compensation and benefits costs.
AUM Balance Increases
As of March 31, 2026, total AUM was $314.9 billion, up 15% year over year, primarily driven by capital raised, change in debt and appreciation across the business.
Fee-paying AUM of $188.4 billion as of March 31, 2026, increased 8% from the prior-year period. The increase was driven by capital raised across the business and deployment in Credit. Permanent Capital of $224.8 billion increased 15%.
In the reported quarter, the company raised $11 billion in new capital commitments.
Total equity fundraise of $9 billion in the quarter was driven by $4.1 billion in Credit, $4 billion in Real Assets and $0.9 billion in GP Strategic Capital.
OWL’s Balance Sheet Strong
As of March 31, 2026, Blue Owl had $190 million in cash and cash equivalents, and a revolving credit facility worth $1.1 billion.
At the end of the first quarter, debt obligations stood at $3.87 billion.
Share Repurchase Update
Blue Owl repurchased 1.7 million shares in the first quarter for $25 million.
Our Take on OWL
While Blue Owl’s performance in the first quarter of 2026 was solid, supported by strong fundraising, near-term pressure from private-credit liquidity strains and borrower quality worries is expected to remain a headwind for the company. Delayed fee ramp timing and elevated expenses may hurt the company’s financials.
Blue Owl Capital Inc. Price, Consensus and EPS Surprise
Blue Owl Capital Inc. price-consensus-eps-surprise-chart | Blue Owl Capital Inc. Quote
Currently, Blue Owl carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of OWL’s Peer Stocks
BlackRock’s (BLK - Free Report) first-quarter 2026 adjusted earnings of $12.53 per share handily surpassed the Zacks Consensus Estimate of $11.96. The figure reflects a 10.9% rise from the year-ago quarter.
Results benefited from a rise in revenues. The AUM balance witnessed robust year-over-year growth, driven by net inflows. However, higher expenses was a headwind for BLK.
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 grew 25% from the prior-year quarter.
BX’s results benefited from a rise in the AUM balance and higher revenues. However, an increase in GAAP expenses was the undermining factor.