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CG's realized performance revenues dropped 82.6% y/y, while total AUM rose 5%.
Carlyle repurchased $205M in shares and declared a quarterly dividend of 35 cents per share.
Shares of The Carlyle Group Inc. (CG - Free Report) fell 3.5% in yesterday’s trading session on lower-than-expected quarterly results. The company reported first-quarter 2026 post-tax distributable earnings per share of 89 cents, missing the Zacks Consensus Estimate of 91 cents. The metric also declined from $1.14 in the year-ago quarter.
Results were weighed down by a sharp pullback in realized performance revenues. However, a rise in the assets under management (AUM) balance was a positive.
Net loss attributable to Carlyle was $132.2 million against net income of $130 million in the year-ago quarter.
Carlyle’s Revenues & Expenses Decline
First-quarter segmental revenues were $750.9 million, which missed the Zacks Consensus Estimate by 16.4%. The top line also declined 28% from the year-ago quarter.
Total segment fee revenues were $644 million, almost flat year over year. Fund management fees rose 3.6% year over year to $544.5 million, while transaction and portfolio advisory fees, net and other, declined 30.6% to $54.1 million. Fee-related performance revenues rose 14.9% to $45.4 million.
Realized performance revenues declined 82.6% from the year-ago quarter to $61.8 million.
Total segmental expenses fell 27.9% year over year to $423.9 million.
CG’s Total AUM Rises
As of March 31, 2026, total AUM was $475.4 billion, up 5% from the prior-year quarter.
The fee-earning AUM was $333.4 billion, which rose 6% year over year. Pending fee-earning AUM was $21 billion, down 17% year over year.
Carlyle’s Segment Performance
Global Private Equity’s total AUM was $159 billion as of March 31, 2026, down 3% year over year. The segment’s fee-related earnings were $139.6 million, down 1.1% year over year. Distributable earnings were $149.9 million, down 43.6%.
Global Credit’s total AUM was $209 billion, up 5% year over year. Fee-related earnings were $92.9 million, down 10.6%. Distributable earnings were $98.2 million, down 11.1%.
Carlyle AlpInvest’s total AUM was $107 billion, up 20% year over year. Fee-related earnings were $67.5 million, up 3.1%. Distributable earnings were $78.9 million, down marginally year over year.
Carlyle’s Capital Distribution Activities
In the reported quarter, CG repurchased or withheld 3.8 million shares of common stock, including shares withheld in the net share settlement of equity awards, totaling $205 million. As of March 31, 2026, $1.9 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 May 28, 2026, to shareholders of record as of May 18, 2026.
Our View on CG
A rising total AUM balance, along with fundraising across Carlyle AlpInvest and Global Credit, will likely support Carlyle’s revenue growth in the long run. However, lower realized performance revenues and a decline in distributable earnings remain headwinds.
Carlyle Group Inc. Price, Consensus and EPS Surprise
In March 2026, Carlyle agreed to acquire a majority stake in MAI Capital Management, a registered investment advisor focused on high and ultra-high-net-worth clients. The transaction values MAI at more than $2.8 billion and marks a significant step in Carlyle’s strategy to expand its presence in the wealth management space and build a more diversified, fee-based revenue base.
The planned acquisition will strengthen Carlyle’s position in the fast-growing wealth management industry, which offers stable, recurring fee-based revenues and long-term client engagement. By increasing its exposure to advisory-driven income streams, Carlyle aims to balance the inherent cyclicality of its private equity and credit businesses.
The transaction also aligns with Carlyle’s broader strategy of investing in high-quality, growth-oriented businesses, supported by favorable long-term trends. With approximately $477 billion in AUM, the firm continues to diversify its investment platform, and the MAI deal is expected to support durable revenue growth and enhance overall earnings stability over time.
Performances of Other Asset Managers
Lazard Inc.’s (LAZ - Free Report) first-quarter 2026 adjusted earnings per share of 42 cents missed the Zacks Consensus Estimate of 52 cents. This compared unfavorably with earnings of 56 cents in the year-ago quarter.
LAZ’s results were affected by lower revenues in the Financial Advisory and Corporate segments. An increase in operating expenses was also negative. However, an increase in AUM and higher revenues in the Asset Management segment supported the results to some extent.
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. Also, the bottom line compared favorably with 47 cents in the year-ago quarter.
BEN’s results benefited from higher revenues. However, a slight decline in AUM and elevated expenses remained headwinds.
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Carlyle Shares Plunge as Q1 Earnings Miss Estimates, AUM Rises Y/Y
Key Takeaways
Shares of The Carlyle Group Inc. (CG - Free Report) fell 3.5% in yesterday’s trading session on lower-than-expected quarterly results. The company reported first-quarter 2026 post-tax distributable earnings per share of 89 cents, missing the Zacks Consensus Estimate of 91 cents. The metric also declined from $1.14 in the year-ago quarter.
Results were weighed down by a sharp pullback in realized performance revenues. However, a rise in the assets under management (AUM) balance was a positive.
Net loss attributable to Carlyle was $132.2 million against net income of $130 million in the year-ago quarter.
Carlyle’s Revenues & Expenses Decline
First-quarter segmental revenues were $750.9 million, which missed the Zacks Consensus Estimate by 16.4%. The top line also declined 28% from the year-ago quarter.
Total segment fee revenues were $644 million, almost flat year over year. Fund management fees rose 3.6% year over year to $544.5 million, while transaction and portfolio advisory fees, net and other, declined 30.6% to $54.1 million. Fee-related performance revenues rose 14.9% to $45.4 million.
Realized performance revenues declined 82.6% from the year-ago quarter to $61.8 million.
Total segmental expenses fell 27.9% year over year to $423.9 million.
CG’s Total AUM Rises
As of March 31, 2026, total AUM was $475.4 billion, up 5% from the prior-year quarter.
The fee-earning AUM was $333.4 billion, which rose 6% year over year. Pending fee-earning AUM was $21 billion, down 17% year over year.
Carlyle’s Segment Performance
Global Private Equity’s total AUM was $159 billion as of March 31, 2026, down 3% year over year. The segment’s fee-related earnings were $139.6 million, down 1.1% year over year. Distributable earnings were $149.9 million, down 43.6%.
Global Credit’s total AUM was $209 billion, up 5% year over year. Fee-related earnings were $92.9 million, down 10.6%. Distributable earnings were $98.2 million, down 11.1%.
Carlyle AlpInvest’s total AUM was $107 billion, up 20% year over year. Fee-related earnings were $67.5 million, up 3.1%. Distributable earnings were $78.9 million, down marginally year over year.
Carlyle’s Capital Distribution Activities
In the reported quarter, CG repurchased or withheld 3.8 million shares of common stock, including shares withheld in the net share settlement of equity awards, totaling $205 million. As of March 31, 2026, $1.9 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 May 28, 2026, to shareholders of record as of May 18, 2026.
Our View on CG
A rising total AUM balance, along with fundraising across Carlyle AlpInvest and Global Credit, will likely support Carlyle’s revenue growth in the long run. However, lower realized performance revenues and a decline in distributable earnings remain headwinds.
Carlyle Group Inc. Price, Consensus and EPS Surprise
Carlyle Group Inc. price-consensus-eps-surprise-chart | Carlyle Group Inc. Quote
CG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Developments of CG
In March 2026, Carlyle agreed to acquire a majority stake in MAI Capital Management, a registered investment advisor focused on high and ultra-high-net-worth clients. The transaction values MAI at more than $2.8 billion and marks a significant step in Carlyle’s strategy to expand its presence in the wealth management space and build a more diversified, fee-based revenue base.
The planned acquisition will strengthen Carlyle’s position in the fast-growing wealth management industry, which offers stable, recurring fee-based revenues and long-term client engagement. By increasing its exposure to advisory-driven income streams, Carlyle aims to balance the inherent cyclicality of its private equity and credit businesses.
The transaction also aligns with Carlyle’s broader strategy of investing in high-quality, growth-oriented businesses, supported by favorable long-term trends. With approximately $477 billion in AUM, the firm continues to diversify its investment platform, and the MAI deal is expected to support durable revenue growth and enhance overall earnings stability over time.
Performances of Other Asset Managers
Lazard Inc.’s (LAZ - Free Report) first-quarter 2026 adjusted earnings per share of 42 cents missed the Zacks Consensus Estimate of 52 cents. This compared unfavorably with earnings of 56 cents in the year-ago quarter.
LAZ’s results were affected by lower revenues in the Financial Advisory and Corporate segments. An increase in operating expenses was also negative. However, an increase in AUM and higher revenues in the Asset Management segment supported the results to some extent.
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. Also, the bottom line compared favorably with 47 cents in the year-ago quarter.
BEN’s results benefited from higher revenues. However, a slight decline in AUM and elevated expenses remained headwinds.