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Ares Management Q3 Earnings on the Deck: What's in Store for the Stock?
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Key Takeaways
ARES is set to report Q3'26 earnings on Oct. 29, with EPS expected to be $1.25, up 5% year over year.
ARES' total AUM is likely to rise 3.5% sequentially to $694.9 billion, while fee-earning AUM may grow 4.5%.
ARES' fee-related performance revenues are expected to nearly double year over year to $80.7 million.
Ares Management (ARES - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 29, before the opening bell. Its quarterly revenues and earnings are likely to have increased on a year-over-year basis.
In the last reported quarter, results benefited from higher management fees, fee-related performance revenues and growth in assets under management (AUM). However, higher expenses partially offset these gains.
ARES' earnings surpassed the Zacks Consensus Estimate in one of the trailing four quarters, matched it once and missed it twice, resulting in an average miss of 4.2%.
Ares Management Corporation Price and EPS Surprise
The Zacks Consensus Estimate for Ares Management’s quarterly earnings has remained unchanged at $1.25 per share over the past seven days. The estimate indicates a 5.0% increase from earnings reported in the prior-year quarter.
The consensus estimate for quarterly sales is pegged at $1.26 billion, suggesting an 8.9% year-over-year increase.
Key Factors & Estimates for Ares Management in Q3
ARES has been witnessing consistent improvement over the years, supported by its diversified alternative investment platform. Despite persistent challenges in private equity exits and elevated financing costs, deal activity remained relatively resilient in the third quarter of 2026 as strategic acquirers continued to pursue deals to expand scale, gain capabilities and strengthen competitiveness. Further, continued fundraising momentum, along with strong investor demand across private credit and other alternative strategies, is likely to have supported AUM growth in the to-be-reported quarter. Overall expansion is expected to have remained steady, driven by the company’s scalable platform, rising perpetual capital base and expanding global distribution network. Backed by continued capital inflows and its scalable investment platform, Ares Management is expected to have witnessed a rise in its AUM balance.
The Zacks Consensus Estimate for total AUM of $694.9 billion indicates growth of 3.5% from the prior quarter’s actual. The consensus estimate for total fee-earning AUM of $428.3 billion suggests a sequential rise of 4.5%.
The Zacks Consensus Estimate for total management fees (segment revenues) is pegged at $1.1 billion, which indicates 4.5% growth from the prior quarter’s actual. The consensus estimate for fee-related performance revenues (segment revenues) of $80.7 million suggests a significant increase from the $40.5 million reported in the prior-year quarter. The Zacks Consensus Estimate for Other fees (segment revenues) is pegged at $79.0 million, which indicates a decrease from the $91.9 million reported in the prior quarter.
ARES’ expenses have been increasing over the past few years, primarily due to higher compensation and benefits, along with continued investments in fundraising and platform expansion. Expenses are also expected to have remained elevated in the third quarter due to acquisition and integration-related costs associated with GCP International and BlueCove. Going forward, continued investments in scaling the global platform, integrating acquired businesses and pursuing growth initiatives may pressure near-term profitability.
What Our Model Predicts for Ares Management
Our proven model does not conclusively predict an earnings beat for ARES this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The company has an Earnings ESP of -0.06%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Finance Stocks Worth Considering
Here are a couple of finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
Invesco Ltd. (IVZ - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 27. The company currently has an Earnings ESP of +0.10% and a Zacks Rank #3.
Over the past week, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been revised upward to 75 cents per share.
View the Zacks #1 Rank List
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Ares Management Q3 Earnings on the Deck: What's in Store for the Stock?
Key Takeaways
Ares Management (ARES - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 29, before the opening bell. Its quarterly revenues and earnings are likely to have increased on a year-over-year basis.
In the last reported quarter, results benefited from higher management fees, fee-related performance revenues and growth in assets under management (AUM). However, higher expenses partially offset these gains.
ARES' earnings surpassed the Zacks Consensus Estimate in one of the trailing four quarters, matched it once and missed it twice, resulting in an average miss of 4.2%.
Ares Management Corporation Price and EPS Surprise
Ares Management Corporation price-eps-surprise | Ares Management Corporation Quote
ARES’ Q3 Earnings & Sales Estimates
The Zacks Consensus Estimate for Ares Management’s quarterly earnings has remained unchanged at $1.25 per share over the past seven days. The estimate indicates a 5.0% increase from earnings reported in the prior-year quarter.
The consensus estimate for quarterly sales is pegged at $1.26 billion, suggesting an 8.9% year-over-year increase.
Key Factors & Estimates for Ares Management in Q3
ARES has been witnessing consistent improvement over the years, supported by its diversified alternative investment platform. Despite persistent challenges in private equity exits and elevated financing costs, deal activity remained relatively resilient in the third quarter of 2026 as strategic acquirers continued to pursue deals to expand scale, gain capabilities and strengthen competitiveness. Further, continued fundraising momentum, along with strong investor demand across private credit and other alternative strategies, is likely to have supported AUM growth in the to-be-reported quarter. Overall expansion is expected to have remained steady, driven by the company’s scalable platform, rising perpetual capital base and expanding global distribution network. Backed by continued capital inflows and its scalable investment platform, Ares Management is expected to have witnessed a rise in its AUM balance.
The Zacks Consensus Estimate for total AUM of $694.9 billion indicates growth of 3.5% from the prior quarter’s actual. The consensus estimate for total fee-earning AUM of $428.3 billion suggests a sequential rise of 4.5%.
The Zacks Consensus Estimate for total management fees (segment revenues) is pegged at $1.1 billion, which indicates 4.5% growth from the prior quarter’s actual. The consensus estimate for fee-related performance revenues (segment revenues) of $80.7 million suggests a significant increase from the $40.5 million reported in the prior-year quarter. The Zacks Consensus Estimate for Other fees (segment revenues) is pegged at $79.0 million, which indicates a decrease from the $91.9 million reported in the prior quarter.
ARES’ expenses have been increasing over the past few years, primarily due to higher compensation and benefits, along with continued investments in fundraising and platform expansion. Expenses are also expected to have remained elevated in the third quarter due to acquisition and integration-related costs associated with GCP International and BlueCove. Going forward, continued investments in scaling the global platform, integrating acquired businesses and pursuing growth initiatives may pressure near-term profitability.
What Our Model Predicts for Ares Management
Our proven model does not conclusively predict an earnings beat for ARES this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The company has an Earnings ESP of -0.06%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Finance Stocks Worth Considering
Here are a couple of finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
Invesco Ltd. (IVZ - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 27. The company currently has an Earnings ESP of +0.10% and a Zacks Rank #3.
Over the past week, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been revised upward to 75 cents per share.
The Earnings ESP for T. Rowe Price Group, Inc. (TROW - Free Report) is +0.36%, and it carries a Zacks Rank of 3 at present. The company is slated to report third-quarter 2026 results on Oct. 29. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past seven days, the Zacks Consensus Estimate for TROW’s quarterly earnings has been revised downward to $2.58 per share.