KKR & Co. Inc.
KKR · NYSE
Next quarter
Reports Nov 6, 2026.
Consensus is $1.42 EPS for Sep 2026 across 6 estimates, ranging $1.28 to $1.55.
KKR Jun 2026
- 15.63%
- +0.45%
- $1.28
- $1.48
- —
- $5.73B
Reported results
- $5.73B
- $700.48M
Highlights
- Earnings beat: Reported EPS was $1.48, 15.6% above the $1.28 consensus estimate; adjusted net income was $1.5 billion, or $1.63 per adjusted share, up 40% year over year.
- Record recurring earnings: Fee Related Earnings reached a record $1.2 billion, or $1.32 per adjusted share, up 37% year over year; Total Operating Earnings rose 29% to $1.5 billion.
- GAAP improvement: Revenue was $5.73 billion, up from $5.09 billion a year earlier and $4.32 billion in the prior quarter; net income attributable to KKR common stockholders was $660.1 million versus $472.4 million and $405.2 million, respectively.
- Capital formation: AUM grew 16% year over year to $796 billion and Fee Paying AUM rose 15% to $638 billion, supported by $34 billion of quarterly new capital and $133 billion over the last 12 months.
- Monetization: KKR delivered its strongest monetization quarter, with $212 million of net realized performance income and $191 million of net realized investment income, producing $403 million of total investing earnings, up from $240 million a year ago.
- Deployment and dry powder: Capital invested was $24 billion in the quarter and $104 billion over the last 12 months, while uncalled commitments stood at $143 billion.
- Insurance contribution: Insurance Operating Earnings increased to $288 million from $278 million a year earlier; Global Atlantic AUM reached $220 billion and book value rose to $11.8 billion from $9.6 billion.
- Arctos acquisition: KKR closed its acquisition of Arctos Partners on May 4, adding approximately $16 billion to the AUM rollforward; Arctos reported $20 billion of AUM at June 30.
- Shareholder returns and balance sheet: KKR declared a $0.195 quarterly dividend, used $352 million for share repurchases and equity-award retirements year to date through July 24, and reported $4.6 billion of net cash and investments.
Analysis
KKR delivered a strong second quarter, beating the $1.28 consensus EPS estimate with reported EPS of $1.48, a 15.6% surprise. Revenue rose 12.5% year over year to $5.73 billion from $5.09 billion and increased 32.6% from $4.32 billion in the first quarter. Net income attributable to common stockholders reached $660.1 million, up from $472.4 million a year ago and $405.2 million in the prior quarter. The reported result also marked a substantial improvement from the $900.4 million of net income in the third quarter of fiscal 2025, although that comparison reflects the volatility of investment gains.
The defining feature of the print was the breadth and durability of earnings. Fee Related Earnings rose 37% to a record $1.2 billion, while Total Operating Earnings increased 29% to $1.5 billion and Adjusted Net Income rose 40% to $1.5 billion. Monetization was also unusually strong: total investing earnings climbed 68% to $403 million, driven by realized performance and investment income. Meanwhile, capital raising remained robust, lifting AUM to $796 billion and FPAUM to $638 billion. Insurance Operating Earnings were comparatively steady at $288 million, while Global Atlantic continued to expand. The Arctos acquisition added sports-investment capabilities and approximately $16 billion of AUM to the quarter's rollforward.
Recurring earnings growth
KKR's most important result was the acceleration in its recurring earnings base. Fee Related Earnings increased 37% year over year to $1.214 billion, with FRE per adjusted share rising to $1.32 from $0.98. Management fees increased to $1.250 billion from $996 million, while fee-related performance revenues rose to $255 million from $54 million. The latter comparison is affected by KKR's decision to classify approximately $160 million of K-Series performance revenues in FRE in the current quarter rather than in realized performance income.
- Total Operating Earnings: TOE rose 29% to $1.539 billion, or $1.68 per adjusted share, with 84% of total segment earnings coming from KKR's more durable operating businesses.
- Adjusted Net Income: ANI increased 40% to $1.493 billion, or $1.63 per adjusted share, while last-twelve-month ANI reached $5.0 billion, up 13%.
- Margins and scale: LTM FRE reached $4.2 billion, up 19%, and LTM TOE was $5.5 billion, also up 19%, showing that fee growth rather than quarterly market marks was the main earnings engine.
Capital raising and AUM
KKR continued to convert its global fundraising platform into a larger fee base. AUM reached $796.5 billion, up 16% year over year, while FPAUM rose 15% to $638.4 billion. Organic fundraising was $34.3 billion in the quarter and $133 billion over the last 12 months, with $29.0 billion of quarterly inflows entering fee-paying vehicles. Perpetual capital increased 16% to $334 billion, representing 42% of AUM and 50% of FPAUM.
- Business-line growth: Private equity AUM rose 19% year over year to $254.7 billion, real assets increased 18% to $210.9 billion, and credit and liquid strategies grew 13% to $330.8 billion.
- Future capacity: Uncalled commitments were $142.7 billion, including $72 billion of committed capital not yet paying fees; $325 billion of $410 billion in carry-eligible AUM was above cost and accruing carry.
- Deployment: Capital invested was $24.2 billion in the quarter and $104 billion over the last 12 months, led by $12 billion in credit, $7 billion in real assets and $5 billion in private equity.
Monetization and investment gains
Realization activity was the second major driver of the quarter. KKR described the period as its strongest monetization quarter ever, with public and private exits across private equity and growth equity. Total investing earnings rose 68% year over year to $403 million, giving the firm a meaningful contribution on top of its recurring fee earnings.
- Performance realizations: Net realized performance income increased to $212 million from $109 million, reflecting a broader set of realization events.
- Investment realizations: Net realized investment income rose to $191 million from $131 million; Strategic Holdings contributed $30 million of net realized investment income.
- Embedded upside: Gross unrealized carried interest was $10.2 billion and embedded unrealized gains in the asset management segment were $2.6 billion at quarter end.
- Portfolio performance: The traditional private equity portfolio appreciated 9% over the last 12 months, while infrastructure rose 8%, leveraged credit 5% and alternative credit 5%.
Global Atlantic insurance
Insurance was stable rather than explosive, but it continued to expand KKR's capital base and fee opportunity. Insurance Operating Earnings increased 4% year over year to $288 million, including approximately $40 million from investment realizations. Net investment income rose to $2.0 billion from $1.8 billion, largely reflecting portfolio growth and higher average yields, while the net cost of insurance increased to $1.5 billion as the business grew and older, lower-cost policies ran off.
- Scale: Global Atlantic AUM reached $220 billion, including $164 billion of credit AUM; Ivy and other sponsored reinsurance vehicles accounted for $62 billion.
- Capital growth: Global Atlantic book value was $11.8 billion, up from $9.6 billion a year earlier.
- Broader economics: Including fees earned by KKR's asset management business from Global Atlantic and related vehicles, total insurance economics rose to $515 million from $460 million.
Arctos and financial position
KKR closed its acquisition of Arctos Partners on May 4, adding a specialized professional-sports investment platform to the private equity business. Arctos had $20 billion of AUM at June 30. The acquisition contributed approximately $16 billion to the six-month AUM rollforward and approximately $10 billion to FPAUM, helping explain part of the sharp private-equity growth.
KKR ended the quarter with $5.3 billion of cash and short-term investments and $8.6 billion of asset-management investments, against $9.3 billion of outstanding debt, for net cash and investments of $4.6 billion. The company declared a $0.195 common dividend and had $87 million remaining under its repurchase authorization after using $352 million year to date through July 24.
- Strategic Holdings: Operating earnings increased to $37 million from $29 million, supported by dividends from a diversified portfolio with KKR's share of LTM adjusted EBITDA at $1.1 billion.
- Balance-sheet flexibility: Debt had an average maturity of approximately 15 years and an after-tax weighted-average fixed coupon of 3%, with a $2.75 billion undrawn revolving credit facility.
