3 Asset Managers With Positive Earnings Surprise Potential in Q2

We are using our proprietary methodology to find stocks that are poised to outpace the Zacks Consensus Estimate in the quarter. By using the Zacks Stock Screener, we have identified three such asset management stocks — Affiliated Managers Group AMG, Franklin Resources BEN and KKR & Co. KKR.

These stocks have the ideal combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to surpass estimates. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Our proprietary methodology, Earnings ESP, shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Research shows that for stocks with this combination of rank and ESP, chances of a positive earnings surprise are as high as 70%.

Before we go into the details regarding the above-mentioned asset managers, let us understand the factors that are likely to have influenced their quarterly performances.

Factors Likely to Have Influenced Asset Managers’ Q2 Earnings

Asset managers are likely to have benefited from favorable capital-market conditions during the second quarter of 2026. The S&P 500 Index gained nearly 15% during the April-June period, driven by strong performance in U.S. equities, particularly AI-related technology stocks, and resilient global markets. The appreciation in client portfolio values is expected to have supported AUM and, consequently, management fee revenues.

Fixed-income markets also generated moderate positive total returns, although trading remained volatile amid geopolitical tensions in the Middle East, concerns over energy-driven inflation and a flattening U.S. yield curve. Nevertheless, positive bond-market returns, along with stable investor demand for fixed-income products, are likely to have contributed to sequential AUM growth.

Investor flows may have been uneven across asset classes, with continued demand for exchange-traded funds, private-market strategies and customized investment solutions. However, persistent fee pressure and the shift toward lower-cost passive products are likely to have constrained revenue growth for traditional active managers.

On the expense front, elevated compensation, distribution and technology-related costs are expected to have weighed on operating leverage. Asset managers continue to invest in artificial intelligence, machine learning, data analytics and digital platforms to improve investment capabilities and client servicing. While these initiatives may increase near-term expenses, they are expected to enhance operational efficiency and support margins over the longer term.

Q2 Earnings Expectations

The Zacks Finance sector’s (of which asset management is part) earnings are projected to rise 24.3% year over year in the second quarter of 2026. This compares with the 25.6% increase recorded in the first quarter of 2026.

(For a detailed look at the earnings growth projections for this sector and others, please read our Earnings Preview.)

3 Potential Safe Bets: AMG, BEN & KKR

Affiliated Managers, headquartered in Massachusetts, is a global asset manager with investments in high-quality, independent partner-owned firms or affiliates.

The company is likely to have gained from diverse product offerings, a pivot toward the alternative strategy and global distribution capability. AMG has been pivoting toward private markets and liquid alternatives, fueling strong client inflows into these segments and offsetting weakness in traditional asset categories. 

Affiliated Managers is expected to announce results on July 30, before market open. The Zacks Consensus Estimate for its second-quarter 2026 earnings of $7.85 per share implies a rise of 45.6% from the year-ago reported figure. AMG has an Earnings ESP of +1.86% and a Zacks Rank #2 (Buy). 

AMG has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with the average beat being 4.26%.

Franklin Resources' fiscal third quarter 2026 performance is expected to have benefited from improving market conditions and stronger investor sentiment. The company, which operates as Franklin Templeton, benefited as rising equity markets helped lift asset values and boosted demand for investment products.

BEN’s preliminary AUM rose marginally on a sequential basis to $1.79 trillion as of June 30, 2026, reflecting the positive impacts of markets and $9 billion of long-term net inflows. Also, the company stepped up its efforts to strengthen its presence in digital assets and expand its active cryptocurrency investment capabilities by acquiring 250 Digital, an active cryptocurrency investment management firm. Subsequently, it launched Franklin Crypto, a dedicated active digital asset management division. These trends suggested that Franklin Resources has been gaining from a healthier investment backdrop, improved client activity and better flow momentum.

Franklin Resources is scheduled to announce fiscal third-quarter (ended June 30, 2026) results on July 31, before market open. The Zacks Consensus Estimate for its fiscal third-quarter earnings of 66 cents per share implies a rise of 34.7% from the year-ago reported figure. The company has an Earnings ESP of +1.14% and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BEN has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with the average beat being 19%.

KKR & Co. has been witnessing growth in fee-earning AUM and total AUM, supported by its diversified product and revenue mix, strong position in the alternative investments space, and steady net inflows. With client activity remaining robust during the second quarter 2026, the company is expected to have recorded further growth in AUM, driven by stronger inflows.

Additionally, KKR is expected to have generated profits from deal exits during the to-be-reported quarter. Based on the company's preliminary estimate for the period between March 31 and June 24, 2026, total realized performance income and net realized investment income are expected to exceed $900 million, up from $475 million in the prior-year quarter.

KKR & Co. is scheduled to announce results on July 30, before market open. The Zacks Consensus Estimate for its second-quarter 2026 earnings of $1.42 per share implies a rise of 20.3% from the year-ago reported figure. The company has an Earnings ESP of +0.18% and a Zacks Rank #3.  

KKR has a decent earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters and missed once, with the average beat being 3.82%.

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This article originally published on Zacks Investment Research (zacks.com).

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