Key Takeaways
- • Ares Management reported Q3 2026 revenue of $1.43 billion, beating the $1.25 billion Wall Street estimate by $180 million, or 14.4%, according to Investing.com.
- • Adjusted EPS of $1.26 missed the $1.27 consensus by one cent, a shortfall of less than 1%.
- • Assets under management reached $691 billion, up 16% year over year, with fee-paying AUM at $416 billion, up 13%.
- • Fee-related earnings rose to $524 million, with margin improving to 42.5%, and the quarterly dividend was raised to $1.35 per share, up more than 20% from a year earlier.
- • Shares rose 2.8% to $127.29 in pre-market trading, with investors appearing to weigh the revenue beat and fundraising strength over the small EPS miss.
Summary
Ares Management reported third-quarter 2026 revenue of $1.43 billion, ahead of Wall Street's $1.25 billion estimate, according to Investing.com's transcript and coverage of the call. Adjusted earnings per share were $1.26, one cent below the $1.27 forecast. Management fees rose 10% year over year to nearly $1.1 billion, and fee-related performance revenues added $79 million. Fee-related earnings reached $524 million with a 42.5% margin, and realized income was $490 million.
Assets under management rose 16% year over year to $691 billion, while fee-paying AUM climbed 13% to $416 billion. Available capital totaled $174 billion at quarter-end, and $117 billion of AUM was not yet paying fees, including about $94 billion available for future deployment. Ares raised more than $31 billion of gross capital in the quarter and deployed $35 billion across strategies and geographies, according to Chief Executive Michael Arougheti. Growth was reported across private credit, real estate, infrastructure and secondaries, though slower U.S. direct lending activity was a noted drag.
The company declared a quarterly dividend of $1.35 per share, more than 20% above a year earlier, and said it has raised its payout for six consecutive years. For full-year 2026, Ares guided to realized performance income of $300 million to $325 million, with $160 million to $185 million expected in the fourth quarter. Management expects fee-related earnings to grow within its 16% to 20% annual target range. Chief Financial Officer Jarrod Phillips said the $117 billion of non-fee-paying AUM could generate more than $800 million in incremental annual management fees if deployed or stabilized.
Shares rose 2.8% to $127.29 from a previous close of $123.82 after the pre-market release, remaining well below the 52-week high of $181.19 and above the low of $95.80. Risks flagged in the call and coverage include timing of performance income, credit spread sensitivity, muted U.S. direct lending M&A volumes, and elevated valuation multiples, with the stock trading at a P/E of roughly 59.
Assets under management rose 16% year over year to $691 billion, while fee-paying AUM climbed 13% to $416 billion. Available capital totaled $174 billion at quarter-end, and $117 billion of AUM was not yet paying fees, including about $94 billion available for future deployment. Ares raised more than $31 billion of gross capital in the quarter and deployed $35 billion across strategies and geographies, according to Chief Executive Michael Arougheti. Growth was reported across private credit, real estate, infrastructure and secondaries, though slower U.S. direct lending activity was a noted drag.
The company declared a quarterly dividend of $1.35 per share, more than 20% above a year earlier, and said it has raised its payout for six consecutive years. For full-year 2026, Ares guided to realized performance income of $300 million to $325 million, with $160 million to $185 million expected in the fourth quarter. Management expects fee-related earnings to grow within its 16% to 20% annual target range. Chief Financial Officer Jarrod Phillips said the $117 billion of non-fee-paying AUM could generate more than $800 million in incremental annual management fees if deployed or stabilized.
Shares rose 2.8% to $127.29 from a previous close of $123.82 after the pre-market release, remaining well below the 52-week high of $181.19 and above the low of $95.80. Risks flagged in the call and coverage include timing of performance income, credit spread sensitivity, muted U.S. direct lending M&A volumes, and elevated valuation multiples, with the stock trading at a P/E of roughly 59.
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