Blue Owl Capital (NYSE:OWL) Announces Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Blue Owl Capital (NYSE:OWL) announced its quarterly earnings results on Thursday. The company reported $0.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.23 by $0.01, FiscalAI reports. The company had revenue of $752.60 million during the quarter, compared to the consensus estimate of $698.10 million. Blue Owl Capital had a return on equity of 23.14% and a net margin of 2.71%.

Here are the key takeaways from Blue Owl Capital’s conference call:

• Strong earnings and dividend coverage: Third-quarter fee-related earnings rose 15% year over year and distributable earnings increased 14%, with DE of $0.24 per share exceeding the $0.23 dividend. Management expects to continue over-earning the dividend through 2027 and beyond.
• Fundraising and embedded fee growth remained robust: Blue Owl raised $12.6 billion in the quarter and $49 billion over the last 12 months, lifting AUM 12% to $330 billion. The company has $36 billion of AUM not yet paying fees, which management estimates could generate approximately $400 million in annual management fees once deployed.
• Credit performance and deployment opportunities were favorable: Direct lending and alternative credit returns outperformed relevant public benchmarks, while direct lending realized losses remained low at 12 basis points annually and portfolio health was described as stable. Higher rates and wider spreads are creating opportunities to redeploy repayments into potentially more attractive investments.
• Real assets and digital infrastructure are key growth areas: Real assets fundraising increased 37% over the last 12 months, with more than $140 billion of near-term net lease and digital infrastructure opportunities. Management emphasized long-term leases with investment-grade hyperscalers and expects continued demand for data-center and real estate credit strategies.
• Private wealth trends showed signs of recovery: Third-quarter wealth inflows rose 14% sequentially, while redemption requests for several products declined, including a nine-quarter low for ORENT. Management cited improving distribution activity, new platform launches, and stronger demand for diversified credit and real-asset products heading into 2027.

Blue Owl Capital Trading Down 1.7%

OWL stock traded down $0.17 during trading on Friday, hitting $10.24. 14,843,436 shares of the stock traded hands, compared to its average volume of 24,614,924. The company has a 50 day simple moving average of $10.10 and a 200 day simple moving average of $10.39. Blue Owl Capital has a one year low of $7.95 and a one year high of $17.00. The stock has a market cap of $15.96 billion, a price-to-earnings ratio of 85.38, a P/E/G ratio of 1.18 and a beta of 1.35.

Blue Owl Capital Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 23rd. Shareholders of record on Tuesday, November 10th will be paid a dividend of $0.23 per share. The ex-dividend date is Tuesday, November 10th. This represents a $0.92 dividend on an annualized basis and a yield of 9.0%. Blue Owl Capital’s dividend payout ratio (DPR) is currently 766.67%.

Key Headlines Impacting Blue Owl Capital

Here are the key news stories impacting Blue Owl Capital this week:

• Positive Sentiment: Q3 earnings and revenue exceeded expectations: Blue Owl reported adjusted earnings of $0.24 per share versus a $0.23 consensus estimate, while revenue reached $752.6 million compared with expectations of $698.1 million. Fee-related earnings growth was a key contributor. Blue Owl Capital Inc. Third Quarter 2026 Results
• Positive Sentiment: Assets and fundraising continued to expand: Assets under management reached a record $330 billion as of September 30, supported by nearly $50 billion raised over the prior 12 months, capital contributions and investment appreciation. The results initially helped lift the shares. Blue Owl Capital stock up on Q3 earnings beat
• Positive Sentiment: Dividend provides substantial income support: Blue Owl declared a quarterly dividend of $0.23 per share, or $0.92 annualized, representing an approximately 8.9% yield based on the cited share price. The dividend is payable November 23 to shareholders of record on November 10. Blue Owl Reports Third Quarter 2026 Results and Declares $0.23 Dividend
• Neutral Sentiment: Analysts raised targets but remain cautious: Barclays increased its target from $10 to $11 and maintained an “equal weight” rating, while Keefe, Bruyette & Woods raised its target from $9 to $10.50 but kept a “market perform” rating. The modest upside implied by these targets suggests limited conviction in a major near-term rally.
• Negative Sentiment: Redemptions remain a concern: Although fundraising and AUM were strong, reports indicated that client redemptions weighed on net inflows. Continued redemption pressure could temper future fee growth and offset some of the benefit from the earnings beat. Blue Owl Fees Beat Estimates Though Redemptions Weigh on Inflows

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. BMO Capital Markets dropped their price target on Blue Owl Capital from $12.00 to $11.00 and set an “outperform” rating for the company in a research report on Tuesday. Oppenheimer upped their price objective on Blue Owl Capital from $15.00 to $17.00 and gave the stock an “outperform” rating in a report on Thursday, August 27th. Piper Sandler dropped their price target on Blue Owl Capital from $13.00 to $12.00 and set an “overweight” rating for the company in a research note on Monday, October 19th. Citigroup reaffirmed a “market outperform” rating on shares of Blue Owl Capital in a research report on Thursday, September 24th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Blue Owl Capital in a research note on Monday, September 14th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $13.12.

Blue Owl Capital Company Profile

Blue Owl Capital Inc (NYSE: OWL) is an alternative asset manager that provides private-market investment solutions to institutional investors, financial professionals, and other clients. The company focuses on strategies designed to deliver income, long-term capital appreciation, and customized exposure to private markets.

Blue Owl operates across three primary platforms: Credit, GP Strategic Capital, and Real Estate. Its credit business provides private financing to companies, including direct lending and other asset-backed and specialty finance strategies.