Ares Management (NYSE:ARES) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Ares Management (NYSE:ARES) announced its quarterly earnings data on Thursday. The asset manager reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.25 by $0.01, FiscalAI reports. Ares Management had a return on equity of 25.42% and a net margin of 10.63%. The business had revenue of $1.43 billion during the quarter, compared to analysts’ expectations of $1.24 billion. During the same quarter last year, the business posted $1.15 EPS. The business’s quarterly revenue was down 13.5% compared to the same quarter last year.

Here are the key takeaways from Ares Management’s conference call:

• Strong third-quarter growth: AUM rose 16% year over year to $691 billion and fee-paying AUM increased 13% to $416 billion. Management fees grew 10% to nearly $1.1 billion, while fee-related earnings increased 19% year to date.
• Fundraising momentum remains robust: Ares raised more than $31 billion in gross capital during the quarter and expects another record fundraising year. Recent successes included an $8 billion first close for U.S. senior direct lending funds, a $4 billion Japan logistics fund close, and strong infrastructure and secondaries demand.
• Significant embedded earnings visibility: The firm ended the quarter with $174 billion of available capital, including $117 billion of AUM not yet paying fees. Deployment or stabilization of these assets could generate more than $800 million in potential incremental annual management fees.
• Diversification and wealth-channel expansion are accelerating: Wealth AUM increased 41% year over year to $82 billion, supported by record inflows into core infrastructure and a broad suite of evergreen products. Infrastructure AUM grew more than 50% over the past year, while secondaries AUM rose approximately 70% over two years.
• U.S. direct-lending activity was temporarily slower and realizations remain delayed: Muted M&A reduced third-quarter deployment, although management cited record pipelines and an expected fourth-quarter pickup. Slower transaction activity pushed some European-style performance-fee payments into later periods, leading Ares to forecast 2026 realized net performance income of $300 million–$325 million.

Ares Management Stock Up 2.8%

ARES traded up $3.47 on Thursday, reaching $127.29. The company’s stock had a trading volume of 1,645,112 shares, compared to its average volume of 2,893,131. The company has a market capitalization of $42.04 billion, a price-to-earnings ratio of 58.39, a P/E/G ratio of 1.11 and a beta of 1.53. Ares Management has a fifty-two week low of $95.80 and a fifty-two week high of $181.19. The company has a quick ratio of 0.26, a current ratio of 0.26 and a debt-to-equity ratio of 1.00. The stock has a 50 day moving average of $126.56 and a two-hundred day moving average of $125.74.

Key Headlines Impacting Ares Management

Here are the key news stories impacting Ares Management this week:

• Positive Sentiment: Adjusted third-quarter earnings were $1.26 per share, narrowly exceeding the $1.25 consensus and rising from $1.15 a year earlier. Revenue of $1.43 billion also surpassed the $1.24 billion estimate. Ares Management Q3 Earnings Beat Estimates, AUM Rises Y/Y
• Positive Sentiment: Assets under management climbed to approximately $690.6 billion, supported by capital inflows and higher management fees. Ares raised more than $31 billion in gross commitments and invested approximately $35 billion during the quarter. Ares Management Corporation Reports Third Quarter 2026 Results
• Positive Sentiment: Fundraising momentum appears particularly strong in private credit and real assets, putting Ares on pace for a record fundraising year. The company also secured an $8 billion first close for its flagship credit fund. Ares Draws $8 Billion for Flagship Credit Fund’s First Close
• Positive Sentiment: U.S. direct-lending activity remained substantial, with $6.3 billion of commitments closed across 55 transactions in the quarter and $43.4 billion over the trailing 12 months. Ares declared a $1.35 quarterly dividend for common shareholders. Ares Management Announces Third Quarter 2026 U.S. Direct Lending Origination Activity
• Neutral Sentiment: Fee-related earnings were $524.2 million and after-tax realized income was $449.6 million, highlighting solid operating cash generation despite weaker GAAP results.
• Negative Sentiment: GAAP net income attributable to Ares fell to $85.3 million, or $0.21 per share, while reported revenue declined 13.5% year over year. This creates a counterweight to the adjusted earnings beat and reflects continued earnings volatility.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the stock. Jefferies Financial Group reduced their target price on shares of Ares Management from $144.00 to $132.00 and set a “hold” rating on the stock in a report on Tuesday, October 6th. TD Cowen decreased their price target on shares of Ares Management from $163.00 to $159.00 and set a “buy” rating for the company in a research note on Monday, October 12th. Barclays lowered their price target on shares of Ares Management from $140.00 to $139.00 and set an “overweight” rating for the company in a report on Thursday, July 9th. The Goldman Sachs Group dropped their price objective on shares of Ares Management from $145.00 to $139.00 and set a “buy” rating on the stock in a research report on Friday, October 2nd. Finally, Wall Street Zen lowered shares of Ares Management from a “hold” rating to a “sell” rating in a report on Saturday, July 4th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and nine have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $148.26.

Ares Management Company Profile

Ares Management Corporation (NYSE: ARES) is a global alternative investment manager that provides investment solutions across credit, private equity, real assets and secondaries. The company manages capital on behalf of institutional investors, pension funds, insurance companies, sovereign wealth funds, family offices and individual investors.

Its investment activities include direct lending and other credit strategies, control and minority investments in private companies, real estate and infrastructure investments, and secondary-market transactions involving private assets and fund interests.