Ares Management Gears Up for Q2 Earnings: Here's What to Expect

ARES earnings surpassed the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, delivering an average miss of 6%.

Ares Management Corporation Price and EPS Surprise

ARES’s Q2 Earnings & Sales Estimates

The Zacks Consensus Estimate for Ares Management’s quarterly earnings has been revised nearly 1% lower over the past seven days to $1.29 per share. The estimate indicates a 25.2% increase from the reported figure in the prior-year quarter.

The consensus estimate for quarterly sales is pegged at $1.32 billion, suggesting a 25.6% year-over-year increase.

Key Factors & Estimates for Ares Management in Q2

ARES has been witnessing consistent improvement over the years, supported by its diversified alternative investment platform. Despite a persistent backlog of private equity exits, deal activity improved in the second quarter of 2026. Further, continued fundraising momentum, along with strong investor demand across private credit and other alternative strategies, is likely to have supported AUM growth in the to-be-reported quarter. Overall expansion is expected to have remained steady, driven by the company’s scalable platform, rising perpetual capital base and expanding global distribution network. Backed by decent inflows and favorable market performance, Ares Management is expected to have witnessed a rise in its AUM balance.

The Zacks Consensus Estimate for total AUM of $669.9 billion indicates growth of 3.9% from the prior quarter’s actual. The consensus estimate for total fee-earning AUM of $417.1 billion suggests a sequential rise of 4.4%.

The Zacks Consensus Estimate for total management fees (segment revenues) is pegged at $1.1 billion, which indicates 5.9% growth from the prior quarter’s actual. The consensus estimate for fee-related performance revenues (segment revenues) of $22.9 million suggests a 17.1% sequential rise. The Zacks Consensus Estimate for Other fees (segment revenues) is pegged at $71.8 million, which indicates a decrease from the $73.9 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 have remained elevated in the second quarter due to the acquisition and integration-related costs associated with the recently acquired GCP International and BlueCove. Going forward, continued investments in scaling the global platform, integrating acquired businesses and pursuing growth initiatives may pressure near-term profitability.

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 +1.48%.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Asset Managers

Ameriprise Financial’s AMP second-quarter 2026 adjusted operating earnings were $11.07 per share, which handily surpassed the Zacks Consensus Estimate of $10.72. The bottom line reflected a rise of 22% from the year-ago quarter.

AMP’s results benefited from higher revenues and an improvement in assets under management and assets under administration balances to record levels. However, an increase in expenses was a headwind.

SEI Investments Co.’s SEIC second-quarter 2026 adjusted earnings per share of $1.66 surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflected a rise of 38.3% from the prior-year quarter.

Results were aided by higher revenues and a rise in AUM. However, higher expenses acted as a spoilsport for SEIC.

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

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