Apollo Global Management, Inc. (New)
APO · NYSE
Next quarter
Reports Nov 3, 2026.
Consensus is $2.12 EPS for Sep 2026 across 9 estimates, ranging $1.99 to $2.27.
APO Jun 2026
- 12.44%
- -2.60%
- $2.01
- $1.76
- —
- $11.15B
Reported results
- $11.15B
- $1.36B
- $2.15
Highlights
- Earnings: Adjusted Net Income was $1.31 billion, or $2.11 per share, up from $1.21 billion and $1.94 in Q1 FY2026; the supplied reported EPS of $1.76 missed the $2.01 consensus by 12.44%.
- Fee Related Earnings: FRE reached a record $785 million, up 25% year over year and 8% sequentially, with margin expanding 120 basis points to 58.5%.
- Spread Related Earnings: SRE rose 7% year over year to a record $877 million, supported by 15.9% growth in fixed-income and other net investment income to $3.69 billion.
- Capital formation: Apollo generated record quarterly inflows of $60 billion, including $38 billion in Asset Management and $22 billion in Retirement Services.
- Scale: Total AUM reached $1.05 trillion, up 25% year over year, while Fee-Generating AUM rose 34% to $858 billion; 60% of total AUM and 70% of FGAUM was perpetual capital.
- Principal investing: Principal Investing Income fell 66% year over year to $16 million as realized performance fees declined to $130 million amid a still-muted exit environment.
- Operating activity: Origination totaled $74 billion and gross capital deployment was $111 billion in the quarter; dry powder reached a record $82 billion, including $62 billion with future management-fee potential.
- GAAP volatility: GAAP net income attributable to common stockholders was $1.34 billion, or $2.15 diluted EPS, versus a $1.93 billion loss and negative $3.27 per share in Q1, when a $1.7 billion one-time tax expense distorted results.
Analysis
Apollo's second quarter was primarily a recurring-earnings and fundraising quarter, with strong underlying operating growth partly obscured by the gap between the supplied reported EPS of $1.76 and the $2.01 consensus estimate. Adjusted Net Income increased to $1.31 billion, or $2.11 per share, from $1.21 billion and $1.94 in Q1 FY2026 and from $1.18 billion and $1.92 in Q2 FY2025. GAAP net income attributable to common stockholders was $1.34 billion, compared with a $1.93 billion loss in Q1, which included a one-time $1.7 billion tax charge, and $605 million in the year-ago quarter.
The strongest part of the print was the combined Asset Management and Retirement Services franchise. FRE grew 25% year over year to a record $785 million, while SRE rose 7% to a record $877 million, taking combined FRE and SRE to $1.66 billion. Record $60 billion quarterly inflows lifted AUM 25% year over year to $1.05 trillion and FGAUM 34% to $858 billion. By contrast, monetization remained the key soft spot: PII dropped to $16 million from $47 million a year earlier as realized performance fees declined, although performance-fee-eligible AUM grew 30% to $340 billion and dry powder reached $82 billion.
Recurring earnings growth
Apollo delivered a materially stronger quarter on its preferred operating measures, even as the supplied EPS result came in below expectations. Adjusted Net Income rose 9% year over year to $1.31 billion, or $2.11 per share, compared with $1.18 billion and $1.92 in Q2 FY2025. Segment Income increased 12% to $1.68 billion, with FRE and SRE together contributing $1.66 billion. GAAP net income attributable to common stockholders was $1.34 billion, or $2.15 diluted EPS, versus $605 million and $0.99 in the year-ago quarter; the sequential comparison was especially favorable because Q1 included a $1.7 billion one-time tax expense.
Asset management momentum
Asset Management produced record FRE of $785 million, up 25% year over year from $627 million and 8% from $728 million in Q1. Fee-related revenue increased 23% to $1.34 billion, led by management fees of $1.00 billion and capital solutions fees of $277 million, a quarterly record and 28% above the prior year. Positive operating leverage pushed FRE margin to 58.5% from 57.3% a year earlier, despite continued investment in the platform. Management fees benefited from Athora's acquisition of PIC, the Bridge acquisition, third-party institutional and global-wealth fundraising, and organic growth at Athene.
Retirement services spread
Retirement Services generated record SRE of $877 million, up 7% year over year from $821 million and 22% sequentially from $719 million. Fixed-income and other net investment income rose 16% to $3.69 billion as average net invested assets increased 14% to $307.2 billion. Alternative net investment income improved to $348 million from $210 million in Q1, although Athene's alternative portfolio returned 9% in the quarter versus management's 11% long-term expectation, leaving a $76 million income shortfall. Net spread improved to 1.14% from 0.97% sequentially but remained below the 1.22% year-ago level as the cost of funds rose to 3.83% from 3.68%.
Flows and AUM scale
Capital formation was a central feature of the quarter. Apollo recorded $60 billion of inflows, its highest quarterly level, comprising $38 billion in Asset Management and $22 billion in Retirement Services. Asset Management inflows included $3 billion from Global Wealth and strength in multi-asset securitization, institutional credit and flagship private equity; Retirement Services benefited from retail sales, funding agreements and flow reinsurance. Total AUM increased 25% year over year to $1.05 trillion, while FGAUM rose 34% to $858 billion. Over the last twelve months, inflows totaled $298 billion, with 60% of total AUM and 70% of FGAUM represented by perpetual capital.
Realizations and capital allocation
Principal Investing remained cyclically light. PII fell to $16 million from $47 million in Q2 FY2025 and $75 million in Q1, as realized performance fees dropped 41% year over year to $130 million; management said monetization in certain flagship private-equity and hybrid funds remained prudently delayed. The longer-term pipeline expanded, with performance-fee-eligible AUM up 30% year over year to $340 billion, performance-fee-generating AUM up 13% to $210 billion and dry powder at a record $82 billion. Apollo deployed $102 million on share repurchases in the quarter and had $3.03 billion remaining under its authorization; over the last twelve months it returned $1.6 billion to stockholders and invested $485 million in strategic growth initiatives.
