Ares Management (ARES) Q3 2026 Earnings
After-tax Realized Income per share includes a $0.12 benefit from tax deductions associated with vesting of restricted stock units ($28.9 million reduction to current tax provision). GAAP diluted EPS was $0.21, reflecting net realized and unrealized losses on investments of $(147.4) million and lower carried interest allocation of $161.7 million.
How Did ARES Stock React to Q3 2026 Earnings?
Did ARES Beat Earnings? Q3 2026 Results
Yes. Ares Management reported Q3 2026 earnings of $1.26 a share on Oct 28, 2026, beating the $1.26 consensus estimate by 0.4%. Revenue was $1.4B against a $1.2B estimate.
Ares Management Corp delivered a broad beat in its third quarter of 2026, with adjusted after-tax Realized Income per Class A share of $1.26 edging past the $1.25 consensus estimate, while revenue of $1.43 billion cleared Wall Street's $1.24 billion forecast by nearly 16%, even as total revenue fell 13.5% from a year earlier. The most material driver of the quarter was fee-based momentum: Fee Related Earnings climbed 11% to $524.20 million, with the FRE margin widening to 42.5% from 41.4%, underscoring the durability of Ares's recurring income streams even as GAAP net income dropped sharply to $85.33 million from $288.88 million, weighed down by a swing to $147.44 million in net investment losses and a steep decline in carried interest allocation. <a href="https://247wallst.com/investing/2026/10/25/ares-management-q3-earnings-preview-can-a-114b-secret-weapon-save-the-stock-on-oct-29/">Heading into the print</a>, questions swirled about deployment headwinds across the sector, yet Ares's $93.80 billion in fee-eligible dry powder and management's expectation of a record fundraising year signal confidence that earnings growth will extend well into 2027.
- Fee Related Earnings rose 11% to $524.2 million; FRE margin improved to 42.5% from 41.4%
- Management fees (segment basis) rose 10% to $1,069.3 million, including Part I Fees of $169.0 million
- Real Assets management fees up 29% from capital raised by the open-ended core infrastructure fund, the diversified non-traded REIT and commitments to US XI; Real Assets FRE up 32%
- Credit management and other fees up 10% from deployment in U.S. and European direct lending and alternative credit, plus perpetual wealth fundraising
- Private Equity FRE up 25% from ACOF VII fees and lower operating expenses
- Raised $31.0 billion gross with net inflows of $28.6 billion; over half of inflows came from outside the Credit Group
- AUM up 16% year over year to $690.6 billion; FPAUM up 13% to $416.4 billion; Perpetual Capital up 23% to $233.9 billion
- Real Assets fee related performance revenues up 57% from the Japanese open-ended industrial real estate equity fund
“Our strong third quarter results demonstrate the depth and breadth of our investment platform as we raised more than $31 billion in gross capital commitments with over half of inflows coming outside of our Credit Group.”
Ares Management CEO, on the earnings call
What Is Ares Management's Outlook?
Management expects another record year of fundraising, with visibility into a strong fourth quarter driven by sustained demand from global institutional and wealth channels. It also expects improved fourth-quarter deployment, its strongest seasonal quarter. The CFO said strong year-to-date performance positions Ares to meet or exceed its key 2026 financial objectives. Capital raised but not yet earning fees provides visibility into continued management fee and earnings growth in 2027 and beyond. AUM not yet paying fees of $93.8 billion available for deployment, plus $2.3 billion of development assets, could generate approximately $826.9 million in potential incremental annual management fees.
ARES YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.4B | $1.7B | −13.5% |
| Net Income | $85.3M | $288.9M | −70.5% |
ARES Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.