We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ares Management posted Q2 after-tax realized income per share of $1.29, matching estimates and rising Y/Y.
Ares Management's total AUM grew to $671.3B and fee-paying AUM rose to $409.9B from a year ago.
ARES raised $36.4B, generated $34.4B in net inflows and declared a $1.35 per share quarterly dividend.
Ares Management Corporation’s (ARES - Free Report) second-quarter 2026 after-tax realized income per share of $1.29 met the Zacks Consensus Estimate. The bottom line increased from $1.03 in the prior-year quarter.
Results reflected growth from higher management fees and fee-related performance revenues. A higher AUM balance was another positive. However, the upside was partly offset by higher expenses.
Net income attributable to the company was $150.6 million, up from $137.1 million in the year-ago quarter.
ARES’ Revenues & Expenses
The company's total revenues of $1.26 billion missed the Zacks Consensus Estimate of $1.32 billion by 4.2%. This compares to year-ago revenues of $1.05 billion.
Management fees rose to $1.02 billion from $900.6 million in the prior-year quarter. Carried interest allocation declined to $249.9 million from $323.9 million, while incentive fees increased to $42.8 million from $23.1 million. Administrative, transaction and other fees rose to $116.1 million from $91.6 million.
Total expenses increased 3.7% year over year to $1.18 billion from the year-ago quarter. The increase was primarily driven by higher compensation and benefits as well as general, administrative and other expenses.
Ares Management’s AUM Balance
As of June 30, 2026, total assets under management (AUM) were $671.3 billion, up from $565.3 billion a year earlier. Fee-paying AUM increased to $409.9 billion from $343.9 billion in the prior-year period.
During the quarter, the company raised $36.4 billion in capital, generated $34.4 billion in net inflows and deployed $35.9 billion.
Ares Management’s Capital Distribution Update
The company announced a quarterly cash dividend of $1.35 per share of its Class A and non-voting common stock, payable Sept. 30, 2026, to shareholders of record as of Sept. 16, 2026.
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, softer revenue relative to expectations and higher operating expenses are likely to remain near-term headwinds.
Ares Management Corporation Price, Consensus and EPS Surprise
Invesco’s (IVZ - Free Report) second-quarter 2026 adjusted earnings of 71 cents per share surpassed the Zacks Consensus Estimate of 67 cents. The bottom line surged 97.2% from the prior-year quarter.
IVZ’s results primarily benefited from an increase in adjusted revenues and substantial growth in the AUM balance. Record net long-term inflows also supported the quarterly results. However, an increase in adjusted expenses was a headwind.
SEI Investments Co.’s (SEIC - Free Report) second-quarter 2026 adjusted earnings per share of $1.66 surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflected a rise of 38.3% from the prior-year quarter.
SEIC's results were aided by higher revenues and a rise in AUM. However, higher expenses acted as a spoilsport.
View the Zacks #1 Rank List
Image: Bigstock
Ares Management Q2 Earnings Meet Estimates, AUM Rises Y/Y
Key Takeaways
Ares Management Corporation’s (ARES - Free Report) second-quarter 2026 after-tax realized income per share of $1.29 met the Zacks Consensus Estimate. The bottom line increased from $1.03 in the prior-year quarter.
Results reflected growth from higher management fees and fee-related performance revenues. A higher AUM balance was another positive. However, the upside was partly offset by higher expenses.
Net income attributable to the company was $150.6 million, up from $137.1 million in the year-ago quarter.
ARES’ Revenues & Expenses
The company's total revenues of $1.26 billion missed the Zacks Consensus Estimate of $1.32 billion by 4.2%. This compares to year-ago revenues of $1.05 billion.
Management fees rose to $1.02 billion from $900.6 million in the prior-year quarter. Carried interest allocation declined to $249.9 million from $323.9 million, while incentive fees increased to $42.8 million from $23.1 million. Administrative, transaction and other fees rose to $116.1 million from $91.6 million.
Total expenses increased 3.7% year over year to $1.18 billion from the year-ago quarter. The increase was primarily driven by higher compensation and benefits as well as general, administrative and other expenses.
Ares Management’s AUM Balance
As of June 30, 2026, total assets under management (AUM) were $671.3 billion, up from $565.3 billion a year earlier. Fee-paying AUM increased to $409.9 billion from $343.9 billion in the prior-year period.
During the quarter, the company raised $36.4 billion in capital, generated $34.4 billion in net inflows and deployed $35.9 billion.
Ares Management’s Capital Distribution Update
The company announced a quarterly cash dividend of $1.35 per share of its Class A and non-voting common stock, payable Sept. 30, 2026, to shareholders of record as of Sept. 16, 2026.
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, softer revenue relative to expectations and higher operating expenses are likely to remain near-term headwinds.
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 #4 (Sell).
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) second-quarter 2026 adjusted earnings of 71 cents per share surpassed the Zacks Consensus Estimate of 67 cents. The bottom line surged 97.2% from the prior-year quarter.
IVZ’s results primarily benefited from an increase in adjusted revenues and substantial growth in the AUM balance. Record net long-term inflows also supported the quarterly results. However, an increase in adjusted expenses was a headwind.
SEI Investments Co.’s (SEIC - Free Report) second-quarter 2026 adjusted earnings per share of $1.66 surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflected a rise of 38.3% from the prior-year quarter.
SEIC's results were aided by higher revenues and a rise in AUM. However, higher expenses acted as a spoilsport.