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ARES' Q3 realized income per share of $1.26 beat estimates by 0.8%, rising y/y from $1.19.
Total AUM rose to $690.6B from $595.7B, while quarterly net inflows reached $28.6B.
Management fees rose to $1.06B, but lower carried interest and incentive fees weighed on revenues.
Ares Management Corporation’s (ARES - Free Report) third-quarter 2026 after-tax realized income per share of $1.26 surpassed the Zacks Consensus Estimate by 0.8%. The bottom line increased from $1.19 in the prior-year quarter.
Results reflected growth from higher management fees and fee-related earnings. A higher assets under management (AUM) balance was another positive. However, the upside was partly offset by lower incentive fees.
Net income attributable to the company was $85.3 million, down from $288.9 million in the year-ago quarter.
ARES’ Revenues & Expenses
The company's reported revenues of $1.19 billion missed the Zacks Consensus Estimate by 6.2%. This compares to year-ago revenues of $1.16 billion.
Management fees rose to $1.06 billion from $971.8 million in the prior-year quarter. Carried interest allocation declined to $161.7 million from $464.7 million, while incentive fees decreased to $82.3 million from $100.7 million. Administrative, transaction and other fees rose to $112.4 million from $102.6 million.
Principal investment income increased to $19.9 million from $18 million.
Total expenses declined 12.2% year over year to $1.15 billion from $1.31 billion. Lower performance-related compensation more than offset higher compensation and benefits, and general, administrative and other expenses. The fee-related earnings margin rose to 42.5% from 41.4%.
Ares Management’s AUM Balance
As of Sept. 30, 2026, total AUM was $690.6 billion, up from $595.7 billion a year earlier. Fee-paying AUM increased to $416.4 billion from $367.6 billion in the prior-year period.
During the quarter, the company raised $31 billion in capital, generated $28.6 billion in net inflows and deployed $34.8 billion. Credit Group AUM rose to $446.2 billion, Real Assets Group to $161.6 billion and Secondaries Group to $46.3 billion. Private Equity Group AUM was $24.5 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 Dec. 31, 2026, to shareholders of record as of Dec. 17, 2026.
Our Viewpoint on Ares Management
ARES 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
BlackRock’s (BLK - Free Report) third-quarter 2026 adjusted earnings of $15.93 per share surpassed the Zacks Consensus Estimate of $13.97. The figure reflects a 38% rise from the year-ago quarter.
BLK’s results benefited from higher revenues, robust asset inflows and improved operating performance. However, higher expenses weighed on BlackRock’s results to an extent.
Blackstone’s (BX - Free Report) third-quarter 2026 distributable earnings of $1.32 per share outpaced the Zacks Consensus Estimate of $1.26. However, the bottom line declined 13% from the prior-year quarter.
BX’s results benefited from a rise in the AUM balance to record levels and higher fee-related earnings. However, a decline in segment revenues was the undermining factor.
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Ares Management Q3 Earnings Beat Estimates, AUM Rises Y/Y
Key Takeaways
Ares Management Corporation’s (ARES - Free Report) third-quarter 2026 after-tax realized income per share of $1.26 surpassed the Zacks Consensus Estimate by 0.8%. The bottom line increased from $1.19 in the prior-year quarter.
Results reflected growth from higher management fees and fee-related earnings. A higher assets under management (AUM) balance was another positive. However, the upside was partly offset by lower incentive fees.
Net income attributable to the company was $85.3 million, down from $288.9 million in the year-ago quarter.
ARES’ Revenues & Expenses
The company's reported revenues of $1.19 billion missed the Zacks Consensus Estimate by 6.2%. This compares to year-ago revenues of $1.16 billion.
Management fees rose to $1.06 billion from $971.8 million in the prior-year quarter. Carried interest allocation declined to $161.7 million from $464.7 million, while incentive fees decreased to $82.3 million from $100.7 million. Administrative, transaction and other fees rose to $112.4 million from $102.6 million.
Principal investment income increased to $19.9 million from $18 million.
Total expenses declined 12.2% year over year to $1.15 billion from $1.31 billion. Lower performance-related compensation more than offset higher compensation and benefits, and general, administrative and other expenses. The fee-related earnings margin rose to 42.5% from 41.4%.
Ares Management’s AUM Balance
As of Sept. 30, 2026, total AUM was $690.6 billion, up from $595.7 billion a year earlier. Fee-paying AUM increased to $416.4 billion from $367.6 billion in the prior-year period.
During the quarter, the company raised $31 billion in capital, generated $28.6 billion in net inflows and deployed $34.8 billion. Credit Group AUM rose to $446.2 billion, Real Assets Group to $161.6 billion and Secondaries Group to $46.3 billion. Private Equity Group AUM was $24.5 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 Dec. 31, 2026, to shareholders of record as of Dec. 17, 2026.
Our Viewpoint on Ares Management
ARES 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
BlackRock’s (BLK - Free Report) third-quarter 2026 adjusted earnings of $15.93 per share surpassed the Zacks Consensus Estimate of $13.97. The figure reflects a 38% rise from the year-ago quarter.
BLK’s results benefited from higher revenues, robust asset inflows and improved operating performance. However, higher expenses weighed on BlackRock’s results to an extent.
Blackstone’s (BX - Free Report) third-quarter 2026 distributable earnings of $1.32 per share outpaced the Zacks Consensus Estimate of $1.26. However, the bottom line declined 13% from the prior-year quarter.
BX’s results benefited from a rise in the AUM balance to record levels and higher fee-related earnings. However, a decline in segment revenues was the undermining factor.