Ares Management (NYSE:ARES – Get Free Report) issued its quarterly earnings data on Friday. The asset manager reported $1.29 EPS for the quarter, topping the consensus estimate of $1.28 by $0.01, FiscalAI reports. Ares Management had a return on equity of 22.14% and a net margin of 10.54%.The firm’s revenue was up 5.8% compared to the same quarter last year. During the same quarter last year, the business earned $1.03 earnings per share.
Here are the key takeaways from Ares Management’s conference call:
- Record fundraising and strong earnings growth: Ares raised approximately $36 billion in the second quarter, lifting AUM and fee-paying AUM 17% year over year. Fee-related earnings rose 20% and realized income increased 31%.
- Significant future fee visibility: The firm ended the quarter with approximately $170 billion of dry powder and $114 billion of AUM not yet paying fees, which management estimates could generate roughly $828 million in incremental annual management fees if deployed.
- Investment activity and pipelines are improving: Firm-wide deployment increased to approximately $36 billion, while the forward pipeline reached a record level, up nearly 20% sequentially. Management expects stronger second-half activity, particularly in U.S. and European direct lending, infrastructure, and digital infrastructure.
- Outlook and shareholder returns remain favorable: Management reaffirmed its 2026 financial objectives, including 16%–20% FRE growth and more than 20% realized-income and dividend growth, while raising the quarterly dividend by more than 20% year over year.
- Wealth-channel redemptions remain a risk: Although redemptions from core U.S. individual investors declined, requests remain concentrated among non-U.S. family offices and smaller institutions, particularly in Asia. Ares expects the remaining redemption queue to take another two to three quarters to normalize and is considering new share-class restrictions.
Ares Management Price Performance
ARES traded up $4.19 during midday trading on Friday, hitting $128.31. The stock had a trading volume of 4,174,760 shares, compared to its average volume of 3,204,200. Ares Management has a 1 year low of $95.80 and a 1 year high of $195.26. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.23 and a current ratio of 0.23. The business has a fifty day moving average of $123.75 and a 200 day moving average of $123.94. The company has a market cap of $42.32 billion, a P/E ratio of 59.68, a price-to-earnings-growth ratio of 1.11 and a beta of 1.51.
Ares Management Dividend Announcement
Trending Headlines about Ares Management
Here are the key news stories impacting Ares Management this week:
- Positive Sentiment: Record fundraising supports future fee growth. Ares raised more than $36 billion during the second quarter as institutions continued allocating capital to private credit. Assets under management exceeded $671 billion at June 30, strengthening the company’s recurring management-fee base. Ares hauls record $36 billion on private credit fundraising momentum
- Positive Sentiment: Fee-related earnings and investment flows improved. Fee-related earnings reached $491.1 million, while after-tax realized income was $467.6 million, or $1.29 per share. The results indicate continued operating momentum despite mixed revenue performance. Ares Management Reports $150.6 Million Q2 Net Income
- Positive Sentiment: Earnings exceeded consensus and direct-lending activity remained robust. Second-quarter earnings of $1.29 per share were slightly above the $1.28 consensus and increased from $1.03 a year earlier. Ares also closed approximately $8.2 billion of U.S. direct-lending commitments across 69 transactions, bringing the 12-month total to about $52.3 billion. Ares Management Corporation Reports Second Quarter 2026 Results
- Neutral Sentiment: Shareholder distributions were maintained. Ares declared a quarterly common-stock dividend of $1.35 per share, payable September 30, 2026, along with a dividend on its Series B mandatory convertible preferred stock. Ares Management Reports $150.6 Million Q2 Net Income
- Negative Sentiment: Revenue missed expectations, and private-credit losses could pressure sentiment. Analysts noted that quarterly revenue fell short of estimates even as earnings met or narrowly exceeded forecasts. Separately, reports highlighted rising defaults and an uptick in non-accruals at Ares-related private-credit funds, raising concerns about portfolio credit quality as the platform expands. Ares Private-Credit Fund Reports Rising Defaults, and New Deals
Institutional Investors Weigh In On Ares Management
Hedge funds have recently made changes to their positions in the business. Summit Securities Group LLC bought a new position in shares of Ares Management during the 4th quarter valued at $49,000. AlphaCentric Advisors LLC bought a new stake in Ares Management in the fourth quarter worth $62,000. Quarry LP lifted its stake in Ares Management by 186.7% in the fourth quarter. Quarry LP now owns 430 shares of the asset manager’s stock worth $70,000 after purchasing an additional 280 shares during the last quarter. Johnson Financial Group Inc. boosted its position in Ares Management by 230.7% during the third quarter. Johnson Financial Group Inc. now owns 453 shares of the asset manager’s stock valued at $72,000 after buying an additional 316 shares during the period. Finally, Geneos Wealth Management Inc. boosted its position in Ares Management by 708.2% during the first quarter. Geneos Wealth Management Inc. now owns 493 shares of the asset manager’s stock valued at $72,000 after buying an additional 432 shares during the period. 50.03% of the stock is currently owned by institutional investors.
Analyst Upgrades and Downgrades
Several brokerages have issued reports on ARES. TD Cowen lifted their target price on shares of Ares Management from $144.00 to $153.00 and gave the company a “buy” rating in a research report on Tuesday, June 23rd. Wall Street Zen lowered shares of Ares Management from a “hold” rating to a “sell” rating in a report on Saturday, July 4th. Barclays lowered their price objective on shares of Ares Management from $140.00 to $139.00 and set an “overweight” rating on the stock in a research report on Thursday, July 9th. Zacks Research upgraded shares of Ares Management from a “strong sell” rating to a “hold” rating in a research report on Tuesday, May 5th. Finally, Morgan Stanley set a $160.00 target price on shares of Ares Management in a research report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $158.93.
Check Out Our Latest Analysis on ARES
About Ares Management
Ares Management Corporation (NYSE: ARES) is a global alternative asset manager that provides investment solutions across credit, private equity and real estate. The firm originates and manages capital across a range of strategies including direct lending, syndicated and special situations credit, private equity buyouts and growth investments, and real estate equity and debt. Ares serves institutional investors, insurance companies, pension funds, sovereign wealth funds, and high‑net‑worth clients through both commingled funds and bespoke managed account structures.
Within credit, Ares offers strategies spanning leveraged loans, structured credit, opportunistic and distressed debt, and specialty finance, with an emphasis on underwriting, portfolio construction and active asset management.
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