Ares Capital Corp
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.47%.
Did ARCC Beat Earnings? Q2 2026 Results
Ares Capital Corp delivered a modest miss on both top and bottom lines in Q2 2026, with core EPS of $0.47 falling just short of the $0.47 consensus estimate and revenue of $768.00 million coming in 0.20% below expectations, even as total investment income climbed 32.6% year-over-year. The headline numbers, however, obscured a sharper divergence beneath the surface: GAAP net income tumbled to $0.24 per share from $0.52 a year ago, weighed down by $183.00 million in net unrealized portfolio losses compared to just $15.00 million in the prior-year period. Core earnings held relatively steady, supported by net investment income rising to $359.00 million from $342.00 million, reflecting the underlying earnings durability of a $29.35 billion portfolio spanning 619 companies. NAV per share slipped to $19.35 from $19.94 at year-end 2025. Looking ahead, the company enters the back half of the year with an investment backlog of approximately $1.50 billion and roughly $6.00 billion in available liquidity, with analysts maintaining a buy-rated consensus and a target price near $20.92.
- Consistent Core Earnings at $0.47 per share despite slower transaction environment
- Net investment income increased to $359 million from $342 million year-over-year
- Total investment income rose to $768 million from $745 million in Q2 2025
- Interest income from investments grew to $557 million from $533 million
- Weighted average yield on debt securities at amortized cost stable at 10.3%
- Portfolio of 619 companies with 273 private equity sponsors represented
- 71% of portfolio in floating rate securities at fair value
“We reported solid second quarter results, supported by consistent Core Earnings, healthy portfolio performance and historically low levels of non-accruing loans and problem assets. In the slower transaction environment of the second quarter, our scale, stable capital base and longstanding borrower relationships enabled us to capture enhanced economics in attractive credits while remaining highly selective. Given our market leadership and competitive advantages, we remain well positioned to continue to generate attractive long-term shareholder returns, anchored by 17 years of stable or increasing regular quarterly dividends.”
Ares Capital CEO, on the earnings call
Forward Guidance & Outlook
As of July 23, 2026, Ares Capital had an investment backlog of approximately $1.5 billion, representing transactions approved or for which formal mandates have been issued. From July 1 through July 23, 2026, the company made approximately $244 million in new investment commitments with a weighted average yield of 10.2% at amortized cost. Post-quarter, the company completed a CLO refinancing of approximately $708.7 million and repaid $1 billion in maturing unsecured notes. Available liquidity stood at approximately $6.0 billion after giving effect to the July debt repayment, with no meaningful near-term debt maturities.
ARCC YoY Financials
Figures from SEC filings and company reports. Not investment advice.