Ares Management ARES is scheduled to announce first-quarter 2026 results on May 1, before the opening bell. Its quarterly revenues and earnings are likely to have increased on a year-over-year basis.
In the last reported quarter, results were primarily affected by higher expenses. Nevertheless, the higher assets under management (AUM) provided some support to the results.
ARES earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average miss of 0.52%.
Ares Management Corporation Price and EPS Surprise
Ares Management Corporation price-eps-surprise | Ares Management Corporation Quote
ARES’s Q1 Earnings & Sales Estimates
The Zacks Consensus Estimate for Ares Management’s quarterly earnings of $1.38 has been revised marginally lower over the past seven days. The figure indicates a rise of 26.6% from the prior-year quarter’s reported number.
The consensus estimate for quarterly sales is pegged at $1.32 billion, which suggests a year-over-year rise of 47.3%.
Major Developments of ARES in Q1
In February 2026, Ares Management completed the acquisition of the entire outstanding share capital of BlueCove Limited, a London-based systematic fixed income manager. Following the completion, the integrated platform now operates as Ares Systematic Credit, the latest strategy within the Ares Credit Group.
The acquisition represents a strategic expansion into systematic credit investing, aligning with rising demand for data-driven fixed income strategies. The addition of BlueCove’s capabilities enhances Ares Management’s presence in liquid and quantitative credit markets and further broadens its Credit Group across diversified credit strategies globally.
Key Factors & Estimates for Ares Management in Q1
ARES has been witnessing consistent improvement over the years, supported by its diversified alternative investment platform. While ongoing concerns in the private credit market, including slower deal activity and a cautious institutional backdrop, are likely to have negatively impacted AUM growth to some extent in the to-be-reported quarter, overall expansion is expected to have remained steady, supported by the company’s scalable platform, rising perpetual capital base, and expanding global distribution network. Supported by decent inflows, Ares Management is expected to have witnessed a rise in the AUM balance.
The Zacks Consensus Estimate for total AUM of $647.9 billion indicates growth of 4.1% from the prior quarter’s actual. The consensus estimate for total fee-earning AUM of $400.8 billion suggests a sequential rise of 4.1%.
The GCP International acquisition expanded ARES’s real assets and digital infrastructure capabilities, and added incremental management fee revenues.
The Zacks Consensus Estimate for total management fees (segment revenues) is pegged at $1 billion, which indicates 3.8% growth from the prior quarter’s actual. The consensus estimate for fee-related performance revenues (segment revenues) of $32.4 million suggests a 81.1% sequential decline. The Zacks Consensus Estimate for Other fees (segment revenues) is pegged at $72.4 million, which indicates a decrease from the $77.2 million reported in the prior quarter.
ARES’ expenses have been increasing over the past few years, primarily driven by higher compensation and benefits, along with continued investments in fundraising and platform expansion. The expenses are also expected to remain elevated in the first quarter due to the acquisition and integration-related costs associated with GCP International and BlueCove.
What Our Model Predicts for Ares Management
Our proven model does not conclusively predict an earnings beat for ARES this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The company has an Earnings ESP of -3.06%.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Asset Managers
Ameriprise Financial’s AMP first-quarter 2026 adjusted operating earnings were a record $11.26 per share, which handily surpassed the Zacks Consensus Estimate of $10.20. The bottom line reflected a rise of 19% from the year-ago quarter.
The results of AMP benefited from higher revenues and improvements in the assets under management and assets under administration balances. However, an increase in expenses was a headwind.
SEI Investments Co.’s SEIC first-quarter 2026 adjusted earnings per share of $1.44 surpassed the Zacks Consensus Estimate of $1.29. Moreover, the bottom line reflected a rise of 21% from the prior-year quarter.
SEIC’s results were aided by higher revenues and a rise in assets under management, and the first full-quarter contribution from the Stratos acquisition. However, higher expenses acted as a spoilsport.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
