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KKR & Co. Shares Gain as Q1 Earnings Beat Estimates, AUM Rises Y/Y
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Key Takeaways
KKR posted Q1 EPS of $1.39, beating estimates, with shares rising on strong results.
KKR saw AUM climb 14.1% Y/Y to $757.9B, driven by growth in fee-paying assets.
KKR's revenues jumped 22.4%, but higher expenses and tough conditions remain headwinds.
KKR & Co. Inc. (KKR - Free Report) reported first-quarter 2026 net income per share of $1.39, surpassing the Zacks Consensus Estimate of $1.28. The bottom line rose from $1.15 in the prior-year quarter.
KKR shares rallied nearly 1.6% in the early trading on better-than-expected results. A full day’s trading session will provide a clearer picture.
Results have primarily reflected impressive growth in assets under management (AUM) and transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.
Net income attributable to the company (GAAP basis) was $364.8 million against a net loss of $185.9 million in the year-ago quarter.
KKR’s Segmental Revenues & Expenses Increase
Total segment revenues amounted to $1.47 billion, increasing 22.4% on a year-over-year basis. The top line surpassed the Zacks Consensus Estimate of $1.43 billion.
Total segment expenses increased 19.9% year over year to $452.6 million.
As of March 31, 2026, total AUM grew 14.1% year over year to $757.9 billion. Fee-paying AUM summed $614.8 billion, which increased 16.8% from the year-ago quarter.
KKR’s Total Operating Earnings & Fee-Related Earnings Rise
Total operating earnings grew 19.1% year over year to $1.3 billion.
The company posted fee-related earnings of $1 billion, up 23.5% year over year.
KKR’s Capital Distribution Update
The company declared a quarterly dividend of 19.5 cents per share of common stock, representing a 5.4% increase from the previous quarterly dividend of 18.5 cents per share. This dividend will be paid on May 29, 2026, to shareholders of record as of the close of business on May 15, 2026.
The company also approved a $500 million increase to its existing share repurchase program, with the authorization set to automatically increase once the remaining capacity falls to $50 million or less.
KKR’s Recent Developments
In May 2026, KKR completed its previously announced acquisition of Arctos Partners, a leading institutional investor in professional sports franchise stakes and asset management solutions. The transaction, which received the required sports league approvals, adds approximately $16 billion in assets under management and enhances KKR’s capabilities in sports investing and GP solutions. As part of the deal, Arctos’ leadership and operations have been integrated into KKR Solutions, a newly established investing platform that combines sports, GP solutions and secondary strategies, supporting the firm’s long-term growth in multi-asset class investing.
Our Viewpoint on KKR
The company will continue utilizing lucrative investment opportunities on the back of its efficient fundraising capability in the quarters ahead. Significant growth in fee-related earnings and total operating earnings is aiding the company’s financials. However, due to the company’s continuous expansion of its global footprint, expenses are likely to remain elevated. The current tough operating environment is another concern.
T. Rowe Price Group, Inc.’s (TROW - Free Report) first-quarter 2026 adjusted earnings per share of $2.52 surpassed the Zacks Consensus Estimate of $2.37. Nevertheless, the bottom line increased 13% year over year.
TROW's results benefited from higher investment advisory fees and a rise in assets under management. Positive capital allocation-based income was also encouraging. However, higher expenses acted as a headwind.
Franklin Resources Inc. (BEN - Free Report) reported second-quarter fiscal 2026 (ended March 31, 2026) adjusted earnings of 71 cents per share, which surpassed the Zacks Consensus Estimate of 55 cents per share. Also, the bottom line compared favorably with 47 cents reported in the year-ago quarter.
BEN’s results benefited from higher revenues. However, a slight decline in assets under management and elevated expenses remained headwinds.
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KKR & Co. Shares Gain as Q1 Earnings Beat Estimates, AUM Rises Y/Y
Key Takeaways
KKR & Co. Inc. (KKR - Free Report) reported first-quarter 2026 net income per share of $1.39, surpassing the Zacks Consensus Estimate of $1.28. The bottom line rose from $1.15 in the prior-year quarter.
KKR shares rallied nearly 1.6% in the early trading on better-than-expected results. A full day’s trading session will provide a clearer picture.
Results have primarily reflected impressive growth in assets under management (AUM) and transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.
Net income attributable to the company (GAAP basis) was $364.8 million against a net loss of $185.9 million in the year-ago quarter.
KKR’s Segmental Revenues & Expenses Increase
Total segment revenues amounted to $1.47 billion, increasing 22.4% on a year-over-year basis. The top line surpassed the Zacks Consensus Estimate of $1.43 billion.
Total segment expenses increased 19.9% year over year to $452.6 million.
As of March 31, 2026, total AUM grew 14.1% year over year to $757.9 billion. Fee-paying AUM summed $614.8 billion, which increased 16.8% from the year-ago quarter.
KKR’s Total Operating Earnings & Fee-Related Earnings Rise
Total operating earnings grew 19.1% year over year to $1.3 billion.
The company posted fee-related earnings of $1 billion, up 23.5% year over year.
KKR’s Capital Distribution Update
The company declared a quarterly dividend of 19.5 cents per share of common stock, representing a 5.4% increase from the previous quarterly dividend of 18.5 cents per share. This dividend will be paid on May 29, 2026, to shareholders of record as of the close of business on May 15, 2026.
The company also approved a $500 million increase to its existing share repurchase program, with the authorization set to automatically increase once the remaining capacity falls to $50 million or less.
KKR’s Recent Developments
In May 2026, KKR completed its previously announced acquisition of Arctos Partners, a leading institutional investor in professional sports franchise stakes and asset management solutions. The transaction, which received the required sports league approvals, adds approximately $16 billion in assets under management and enhances KKR’s capabilities in sports investing and GP solutions. As part of the deal, Arctos’ leadership and operations have been integrated into KKR Solutions, a newly established investing platform that combines sports, GP solutions and secondary strategies, supporting the firm’s long-term growth in multi-asset class investing.
Our Viewpoint on KKR
The company will continue utilizing lucrative investment opportunities on the back of its efficient fundraising capability in the quarters ahead. Significant growth in fee-related earnings and total operating earnings is aiding the company’s financials. However, due to the company’s continuous expansion of its global footprint, expenses are likely to remain elevated. The current tough operating environment is another concern.
KKR & Co. Inc. Price, Consensus and EPS Surprise
KKR & Co. Inc. price-consensus-eps-surprise-chart | KKR & Co. Inc. Quote
Currently, KKR carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Asset Managers
T. Rowe Price Group, Inc.’s (TROW - Free Report) first-quarter 2026 adjusted earnings per share of $2.52 surpassed the Zacks Consensus Estimate of $2.37. Nevertheless, the bottom line increased 13% year over year.
TROW's results benefited from higher investment advisory fees and a rise in assets under management. Positive capital allocation-based income was also encouraging. However, higher expenses acted as a headwind.
Franklin Resources Inc. (BEN - Free Report) reported second-quarter fiscal 2026 (ended March 31, 2026) adjusted earnings of 71 cents per share, which surpassed the Zacks Consensus Estimate of 55 cents per share. Also, the bottom line compared favorably with 47 cents reported in the year-ago quarter.
BEN’s results benefited from higher revenues. However, a slight decline in assets under management and elevated expenses remained headwinds.