Ares Capital (ARCC) Q3 2026 Earnings
How Did ARCC Stock React to Q3 2026 Earnings?
Did ARCC Beat Earnings? Q3 2026 Results
No. Ares Capital reported Q3 2026 earnings of $0.46 a share on Oct 27, 2026, missing the $0.48 consensus estimate by 3.3%. Revenue was $763.0M against a $776.1M estimate.
Ares Capital delivered a softer-than-expected third quarter, missing on both the top and bottom lines as a slower deal environment weighed on results. Adjusted EPS came in at $0.46, trailing the $0.48 consensus by 3.30%, while total investment income of $763.00 million fell short of the $776.12 million analyst estimate by 1.69%, even as revenue climbed 16.5% year over year. The primary culprit was a sharp pullback in new investment commitments, which slowed to $2.10 billion from $3.92 billion in Q3 2025, compressing fee income and contributing to net realized losses of $52.00 million against gains of $162.00 million a year ago. GAAP net income fell to $319.00 million, or $0.44 per share, from $404.00 million, and NAV per share slipped to $19.31 from $19.94 at year-end 2025. Management struck a cautiously constructive tone looking ahead, pointing to a $2.50 billion investment backlog as of late October and the pending acquisition of MidCap Financial Investment Corporation as factors expected to reinforce earnings power, with analysts watching whether the BDC's appeal as a high-yield income vehicle can be sustained through the deal's close.
- Net investment income of $328 million ($0.46 per share) remained the primary earnings driver
- Weighted average yields on debt and other income producing securities at amortized cost increased to 10.6% from 10.3% at year-end 2025
- Total investment income declined to $763 million from $782 million in Q3 2025 driven by lower capital structuring service fees
- Net realized losses of $52 million versus net realized gains of $162 million in Q3 2025 weighed on GAAP earnings
- Net unrealized gains of $43 million partially offset realized losses
- Dividend income increased to $160 million from $141 million year-over-year
“We reported solid third quarter results supported by continued healthy portfolio performance, including stable credit quality and historically low levels of non-accruing loans and problem assets. While a slower transaction environment led to a more measured pace of originations during the quarter, our investment backlog is up meaningfully from last quarter, and we are seeing stronger transaction activity entering the fourth quarter. We believe our market leadership, scale, diversified portfolio and strong financial position, along with the expected benefit from higher yields and our recently announced acquisition of MidCap Financial Investment Corporation, reinforce our strong underlying earnings power and our confidence in the current level of our regular quarterly dividend.”
Ares Capital CEO, on the earnings call
What Is Ares Capital's Outlook?
Management noted that the investment backlog has grown meaningfully to approximately $2.5 billion as of October 22, 2026, and stronger transaction activity is being seen entering Q4 2026. The recently announced acquisition of MidCap Financial Investment Corporation, combined with higher portfolio yields, is expected to reinforce underlying earnings power. Management expressed confidence in maintaining the current level of the regular quarterly dividend. Post-quarter activity through October 22 included approximately $1.1 billion in new investment commitments and $727 million in exits.
ARCC YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $763.0M | $655.0M | +16.5% |
| Net Income | $319.0M | $404.0M | −21.0% |
When Does Ares Capital Report Next?
Figures from SEC filings and company reports. Not investment advice.