Key Takeaways
- • Ares Management reported third-quarter 2026 revenue of $1.43 billion, beating the $1.25 billion Wall Street estimate by $180 million, or 14.4%.
- • Adjusted EPS of $1.26 came in one cent below the $1.27 consensus, a miss of less than 1%.
- • Assets under management rose 16% year over year to $691 billion, while fee-paying AUM climbed 13% to $416 billion.
- • Fee-related earnings reached $524 million with a 42.5% margin, and the company raised its quarterly dividend 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 focusing on the revenue beat and fundraising strength over the small EPS shortfall.
Summary
Ares Management reported third-quarter 2026 revenue of $1.43 billion, ahead of Wall Street's $1.25 billion estimate, according to the Investing.com earnings call transcript coverage. Adjusted earnings per share were $1.26, just below the $1.27 forecast. The company's assets under management rose to $691 billion, up 16% from a year earlier, and its stock rose 2.8% to $127.29 in pre-market trading from a previous close of $123.82.
Management fees rose 10% year over year to nearly $1.1 billion, and fee-related performance revenues added another $79 million. Fee-related earnings climbed to $524 million, with margin improving to 42.5%. Realized income was $490 million in the quarter. Fee-paying AUM reached $416 billion, up 13%, and available capital totaled $174 billion. Ares said growth spanned its private credit, real estate, infrastructure and secondaries businesses, and that no single strategy carried the full growth story.
Fundraising was a highlight. Ares raised more than $31 billion of gross capital in the period and said it expects another strong fourth quarter. The firm deployed $35 billion across strategies and geographies, according to Chief Executive Michael Arougheti. Results were uneven in some areas, including slower U.S. direct lending, where muted M&A volumes have delayed deployment. Chief Financial Officer Jarrod Phillips said $117 billion of AUM is not yet paying fees, including about $94 billion available for future deployment, which could generate more than $800 million in incremental annual management fees if deployed or stabilized.
For the full year 2026, Ares expects realized performance income of $300 million to $325 million, including $160 million to $185 million in the fourth quarter. The company also expects fee-related earnings to grow within its 16% to 20% annual target range. Management pointed to a record U.S. direct lending pipeline, a seventh European direct lending fund expected to launch in the first half of 2027, and a first close for its digital infrastructure strategy expected in the fourth quarter. The Ares Core Infrastructure Fund reported about $2.7 billion of equity commitments and roughly $8.5 billion in AUM.
The shares remain well below their 52-week high of $181.19 but are far above the 52-week low of $95.80. The company has raised its dividend for six consecutive years and currently yields 4.4%, according to the source's data.
Management fees rose 10% year over year to nearly $1.1 billion, and fee-related performance revenues added another $79 million. Fee-related earnings climbed to $524 million, with margin improving to 42.5%. Realized income was $490 million in the quarter. Fee-paying AUM reached $416 billion, up 13%, and available capital totaled $174 billion. Ares said growth spanned its private credit, real estate, infrastructure and secondaries businesses, and that no single strategy carried the full growth story.
Fundraising was a highlight. Ares raised more than $31 billion of gross capital in the period and said it expects another strong fourth quarter. The firm deployed $35 billion across strategies and geographies, according to Chief Executive Michael Arougheti. Results were uneven in some areas, including slower U.S. direct lending, where muted M&A volumes have delayed deployment. Chief Financial Officer Jarrod Phillips said $117 billion of AUM is not yet paying fees, including about $94 billion available for future deployment, which could generate more than $800 million in incremental annual management fees if deployed or stabilized.
For the full year 2026, Ares expects realized performance income of $300 million to $325 million, including $160 million to $185 million in the fourth quarter. The company also expects fee-related earnings to grow within its 16% to 20% annual target range. Management pointed to a record U.S. direct lending pipeline, a seventh European direct lending fund expected to launch in the first half of 2027, and a first close for its digital infrastructure strategy expected in the fourth quarter. The Ares Core Infrastructure Fund reported about $2.7 billion of equity commitments and roughly $8.5 billion in AUM.
The shares remain well below their 52-week high of $181.19 but are far above the 52-week low of $95.80. The company has raised its dividend for six consecutive years and currently yields 4.4%, according to the source's data.
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