KKR & Co. Shares Gain as Q2 Earnings Beat Estimates, AUM Rises Y/Y

Results have primarily reflected impressive growth in assets under management (AUM) and transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.

The results include certain non-recurring items. After considering those, net income attributable to the company’s common stockholders (GAAP basis) was $660.1 million, up from $472.4 million in the year-ago quarter.

KKR’s Segmental Revenues & Expenses Increase

Total segment revenues amounted to $1.73 billion, increasing 34.4% on a year-over-year basis. The top line surpassed the Zacks Consensus Estimate of $1.52 billion.

Total segment expenses increased 28.9% year over year to $511.8 million.

As of June 30, 2026, total AUM grew 16.1% year over year to $796.5 billion. Fee-paying AUM summed $638.4 billion, which increased 14.8% from the year-ago quarter.

KKR’s Total Operating Earnings & Fee-Related Earnings Rise

Total operating earnings grew 28.9% year over year to $1.54 billion.

The company posted fee-related earnings of $1.21 billion, up 36.9% year over year.

Our Viewpoint on KKR

The company will likely continue utilizing lucrative investment opportunities on the back of its efficient fundraising capabilities in the quarters ahead. Significant growth in AUM, fee-related earnings and total operating earnings are aiding its financials.

In May 2026, the company completed its acquisition of Arctos Partners, which had $20 billion in AUM as of June 30, 2026. The acquisition is expected to strengthen KKR’s Private Equity business and expand its capabilities in professional sports franchise investing and asset management solutions for sponsors. However, rising fee-related compensation and other operating expenses are likely to keep the expense base elevated. The current tough operating environment is another concern.

Currently, KKR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Asset Managers

BlackRock’s BLK second-quarter 2026 adjusted earnings of $13.91 per share handily surpassed the Zacks Consensus Estimate of $12.72. The figure reflects a 15% rise from the year-ago quarter.

BLK’s results benefited from a rise in revenues. The assets under management balance witnessed robust year-over-year growth, driven by net inflows. However, higher expenses created a headwind.

Blackstone’s BX second-quarter 2026 distributable earnings of $1.52 per share outpaced the Zacks Consensus Estimate of $1.33. The figure soared 26% from the prior-year quarter.

BX’s results benefited from a rise in AUM and higher revenues. An increase in GAAP expenses was the undermining factor.

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

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