Q2 26 EPS
$1.29
BEAT +1.44%
Est. $1.27
Q2 26 Revenue
$1.43B
BEAT +24.99%
Est. $1.14B
vs S&P Since Q2 26
+10.7%
BEATING MARKET
ARES +14.2% vs S&P +3.4%
Market Reaction
Did ARES Beat Earnings? Q2 2026 Results
Ares Management Corp delivered a strong second quarter for fiscal 2026, beating Wall Street expectations on both the top and bottom lines as record fundraising and accelerating deployment drove broad-based growth across its alternative investment pla… Read more Ares Management Corp delivered a strong second quarter for fiscal 2026, beating Wall Street expectations on both the top and bottom lines as record fundraising and accelerating deployment drove broad-based growth across its alternative investment platform. The firm posted earnings per share of $1.29, edging past the consensus estimate of $1.27 by 1.44%, while revenue of $1.43 billion exceeded the $1.14 billion estimate by nearly 25%, rising 5.8% year-over-year. The single most material driver behind the outperformance was a record $36.40 billion in new capital raised during the quarter, which lifted total AUM 17% year-over-year to $671.30 billion and pushed Fee Related Earnings up 20% to $491.10 million, with FRE margins expanding to 42.2%. Record dry powder of $170.00 billion underpins management's confidence in continued growth, with CFO Jarrod Phillips noting that many key financial metrics grew more than 20% year-over-year and that the firm is well-positioned to execute against what it described as its largest-ever forward investment pipeline heading into the second half of the year.
Key Takeaways
- • Record fundraising of more than $36 billion in Q2-26 inflows
- • Credit Group management and other fees grew 14% YoY driven by U.S. and European direct lending deployment and alternative credit strategies
- • Real Assets Group management fees grew 15% YoY driven by open-ended core infrastructure fund and diversified non-traded REIT capital raises
- • Secondaries fee related performance revenues grew 141% YoY driven by APMF NAV appreciation
- • Perpetual Capital AUM grew 34% YoY to $223.3 billion
- • AUM Not Yet Paying Fees of $92.6 billion available for future deployment could generate approximately $828 million in potential incremental annual management fees
- • FRE margin expanded to 42.2% from 41.2% in Q2-25
- • Gross capital deployment of $35.9 billion up from $26.9 billion in Q2-25
- • Incentive Generating AUM grew 21% YoY to $169.0 billion
ARES Forward Guidance & Outlook
Management indicated the firm remains on track to achieve its financial goals for the year. CFO Jarrod Phillips noted that many key financial metrics grew more than 20% year over year and highlighted the record $170 billion of dry powder positioning the firm to execute on its largest-ever forward investment pipeline and support continued earnings growth. CEO Michael Arougheti noted a meaningful pickup in the firmwide investment pipeline despite a slower transaction environment.
ARES YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
ARES Revenue by Segment
With YoY comparisons, source: SEC Filings
“We generated strong second-quarter results, including another record quarter of fundraising with more than $36 billion of inflows as our clients continue to reward us due to our strong and consistent fund performance across our strategies.”
— Michael Arougheti, Q2 2026 Earnings Press Release
ARES Earnings Trends
ARES vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ARES EPS Trend
Earnings per share: estimate vs actual
ARES Revenue Trend
Quarterly revenue: estimate vs actual
ARES Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $1.27 | $1.29 | +1.44% | $1.43B | +24.99% |
| Q1 26 MISS | $1.33 | $1.24 | -6.57% | $1.40B | +26.11% |
| Q4 25 MISS | $1.69 | $1.45 | -14.00% | $3.68B | +177.23% |
| Q3 25 BEAT | $1.14 | $1.19 | +3.98% | $1.66B | +54.73% |
| Q2 25 MISS | $1.09 | $1.03 | -5.26% | $1.35B | +40.31% |