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.
Apollo Global Stock Dips 3.5% on Q3 Earnings Miss, Expenses Rise Y/Y
Read MoreHide Full Article
Key Takeaways
Apollo Global shares dip 3.5% as Q3'26 adjusted earnings of $2.15 per share missed the $2.21 estimate.
APO's segment revenues rose 20% year over year, but a 15% increase in expenses weighed on results.
APO's total AUM climbed 18% year over year, while fee-generating AUM surged 28% to $880 billion.
Shares of Apollo Global Management, Inc. (APO - Free Report) lost nearly 3.5% in the early trading session after reporting lower-than-expected results. The company’s third-quarter 2026 adjusted net income per share of $2.15 missed the Zacks Consensus Estimate of $2.21. The metric increased from the year-ago adjusted net income of $2.14.
Results were adversely affected by higher expenses. However, higher fee-related revenues and assets under management (AUM) balances acted as tailwinds in the quarter.
The results include certain items. After considering those, net loss attributable to Apollo Global (GAAP basis) was $1.06 billion against net income of $1.74 billion in the prior-year quarter. The loss was primarily due to unrealized mark-to-market losses on certain investments within the Retirement Services segment resulting from higher interest rates.
APO’s Quarterly Revenues & Expenses Rise
Total segment revenues were $1.37 billion, surpassing the Zacks Consensus Estimate of $1.34 billion. The metric increased 20% year over year from $1.15 billion.
Management fees increased 18% year over year to $1.02 billion. Capital solutions fees and other, net, rose 37% year over year to $290 million, while fee-related performance fees declined 8% to $67 million.
Total expenses for combined segments increased 15% year over year to $572 million in the reported quarter.
Apollo Global’s AUM Balance Rises
Fee-generating AUM increased 28% year over year to $880 billion. The rise was driven by strong capital formation from institutional channels, $65 billion from Athora’s acquisition of Pension Insurance Corporation and robust organic growth at Athene, partially offset by outflows and realization activity.
As of Sept. 30, 2026, total AUM was $1.07 trillion, up 18% year over year. Total AUM benefited from $195 billion of inflows from Asset Management, $75 billion of gross inflows from Retirement Services and mark-to-market appreciation. This was partially offset by $77 billion of outflows and $32 billion of realization activity.
APO’s Liquidity Position
As of Sept. 30, 2026, Apollo Global’s holding company and Asset Management businesses had cash and cash equivalents of $3.97 billion, up from $3.41 billion as of June 30. Debt remained unchanged at $5.76 billion.
APO’s Capital Distribution Update
APO repurchased $143 million of common stock during the third quarter, including $75 million of opportunistic repurchases and $68 million to substantially offset dilution.
The company declared a quarterly cash dividend of 56.25 cents per share, payable on Nov. 30, 2026, to shareholders of record as of Nov. 18. Over the last 12 months, Apollo Global returned approximately $1.5 billion to stockholders through dividends and opportunistic share repurchases.
Our Viewpoint on APO
Apollo Global’s expanding AUM and continued strength across Asset Management remain encouraging. Strong capital formation, robust inflows and record origination activity position the company well for sustained growth. Its planned minority investment in Abu Dhabi-based Mubadala Capital is expected to deepen its presence in the Middle East and strengthen institutional relationships in the region. The recent launch of European Credit Company with more than €10 billion ($11.2 billion) in lending capacity is expected to expand its European credit business. However, higher expenses and lower spread-related earnings continue to weigh on overall results.
Apollo Global Management Inc. 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.
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.
ARES’ results reflected growth from higher management fees and fee-related earnings. A higher assets under management balance was another positive. However, the upside was partly offset by lower incentive fees.
View the Zacks #1 Rank List
Image: Shutterstock
Apollo Global Stock Dips 3.5% on Q3 Earnings Miss, Expenses Rise Y/Y
Key Takeaways
Shares of Apollo Global Management, Inc. (APO - Free Report) lost nearly 3.5% in the early trading session after reporting lower-than-expected results. The company’s third-quarter 2026 adjusted net income per share of $2.15 missed the Zacks Consensus Estimate of $2.21. The metric increased from the year-ago adjusted net income of $2.14.
Results were adversely affected by higher expenses. However, higher fee-related revenues and assets under management (AUM) balances acted as tailwinds in the quarter.
The results include certain items. After considering those, net loss attributable to Apollo Global (GAAP basis) was $1.06 billion against net income of $1.74 billion in the prior-year quarter. The loss was primarily due to unrealized mark-to-market losses on certain investments within the Retirement Services segment resulting from higher interest rates.
APO’s Quarterly Revenues & Expenses Rise
Total segment revenues were $1.37 billion, surpassing the Zacks Consensus Estimate of $1.34 billion. The metric increased 20% year over year from $1.15 billion.
Management fees increased 18% year over year to $1.02 billion. Capital solutions fees and other, net, rose 37% year over year to $290 million, while fee-related performance fees declined 8% to $67 million.
Total expenses for combined segments increased 15% year over year to $572 million in the reported quarter.
Apollo Global’s AUM Balance Rises
Fee-generating AUM increased 28% year over year to $880 billion. The rise was driven by strong capital formation from institutional channels, $65 billion from Athora’s acquisition of Pension Insurance Corporation and robust organic growth at Athene, partially offset by outflows and realization activity.
As of Sept. 30, 2026, total AUM was $1.07 trillion, up 18% year over year. Total AUM benefited from $195 billion of inflows from Asset Management, $75 billion of gross inflows from Retirement Services and mark-to-market appreciation. This was partially offset by $77 billion of outflows and $32 billion of realization activity.
APO’s Liquidity Position
As of Sept. 30, 2026, Apollo Global’s holding company and Asset Management businesses had cash and cash equivalents of $3.97 billion, up from $3.41 billion as of June 30. Debt remained unchanged at $5.76 billion.
APO’s Capital Distribution Update
APO repurchased $143 million of common stock during the third quarter, including $75 million of opportunistic repurchases and $68 million to substantially offset dilution.
The company declared a quarterly cash dividend of 56.25 cents per share, payable on Nov. 30, 2026, to shareholders of record as of Nov. 18. Over the last 12 months, Apollo Global returned approximately $1.5 billion to stockholders through dividends and opportunistic share repurchases.
Our Viewpoint on APO
Apollo Global’s expanding AUM and continued strength across Asset Management remain encouraging. Strong capital formation, robust inflows and record origination activity position the company well for sustained growth. Its planned minority investment in Abu Dhabi-based Mubadala Capital is expected to deepen its presence in the Middle East and strengthen institutional relationships in the region. The recent launch of European Credit Company with more than €10 billion ($11.2 billion) in lending capacity is expected to expand its European credit business. However, higher expenses and lower spread-related earnings continue to weigh on overall results.
Apollo Global Management Inc. Price, Consensus and EPS Surprise
Apollo Global Management Inc. price-consensus-eps-surprise-chart | Apollo Global Management Inc. Quote
Currently, Apollo Global carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of APO’s 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.
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.
ARES’ results reflected growth from higher management fees and fee-related earnings. A higher assets under management balance was another positive. However, the upside was partly offset by lower incentive fees.