Ares Management (NYSE:ARES) Releases Earnings Results, Misses Estimates By $0.10 EPS

02 May 2026, 08:43 by Amy Steele · The Cerbat Gem

Ares Management (NYSE:ARES – Get Free Report) issued its quarterly earnings results on Friday. The asset manager reported $1.24 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.34 by ($0.10), Briefing.com reports. The firm had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.28 billion. Ares Management had a return on equity of 19.04% and a net margin of 9.41%.During the same quarter last year, the firm posted $1.09 EPS.

Here are the key takeaways from Ares Management’s conference call:

Strong Q1 financials — AUM rose 18% to $644 billion, fee-paying AUM +19% to $400 billion, management fees exceeded $1.0 billion for the first time, FRE +26% and realized income +24%, and the company raised its quarterly dividend to $1.35 (up >20% YoY).
Record fundraising and ample dry powder — Ares raised $30 billion of gross capital in Q1 (its largest Q1, +46% YoY), reports >$158 billion of available capital and >$100 billion of private credit dry powder, and hit hard caps/strong closes across flagship funds (e.g., ASOF III, SDL III), supporting near-term deployment and fee growth.
Deployment and pipeline are mixed but expanding — firm-wide Q1 deployments were >$32 billion (above last year) and management says the pipeline is at a record with strength in European and U.S. direct lending, alternative credit, infrastructure and secondaries, though U.S. direct lending activity was seasonally slower early in Q1.
Credit fundamentals and performance remain healthy — management reported low non-accruals, ~10% EBITDA growth in direct lending, strong time-weighted returns across strategies (generally high single- to mid-teens), limited software exposure (~6% of AUM) and an independent review finding 86% of software exposure is low risk for AI disruption.
Retail liquidity pressures are localized but a potential risk — some repurchase requests hit non-traded BDCs and smaller wealth investors in select regions; management estimates an extreme scenario of sustained 5% quarterly redemptions in two private credit wealth products would reduce FPAUM by ~1% annually, which they say would have minimal profit impact but remains a near-term retail-channel risk.

Ares Management Stock Up 1.6%

Ares Management stock opened at $119.26 on Friday. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.86. Ares Management has a 12-month low of $95.80 and a 12-month high of $195.26. The firm’s fifty day moving average is $110.17 and its 200 day moving average is $139.58. The company has a market capitalization of $39.29 billion, a PE ratio of 70.57, a PEG ratio of 1.06 and a beta of 1.52.

Ares Management Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 16th will be given a dividend of $1.35 per share. This represents a $5.40 dividend on an annualized basis and a dividend yield of 4.5%. The ex-dividend date is Tuesday, June 16th. Ares Management’s payout ratio is presently 319.53%.

Insiders Place Their Bets

In related news, Director Ashish Bhutani bought 10,000 shares of the company’s stock in a transaction that occurred on Friday, February 6th. The shares were bought at an average price of $126.61 per share, for a total transaction of $1,266,100.00. Following the transaction, the director directly owned 34,071 shares of the company’s stock, valued at approximately $4,313,729.31. The trade was a 41.54% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Judy D. Olian bought 480 shares of the company’s stock in a transaction that occurred on Friday, February 20th. The shares were bought at an average price of $124.43 per share, for a total transaction of $59,726.40. Following the transaction, the director directly owned 29,734 shares in the company, valued at $3,699,801.62. This trade represents a 1.64% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 36.86% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of ARES. AQR Capital Management LLC raised its holdings in Ares Management by 116.7% during the first quarter. AQR Capital Management LLC now owns 10,360 shares of the asset manager’s stock worth $1,519,000 after buying an additional 5,579 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Ares Management by 5.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,344 shares of the asset manager’s stock worth $197,000 after buying an additional 70 shares during the last quarter. Empowered Funds LLC raised its holdings in Ares Management by 42.7% during the first quarter. Empowered Funds LLC now owns 6,197 shares of the asset manager’s stock worth $909,000 after buying an additional 1,853 shares during the last quarter. Focus Partners Wealth raised its holdings in Ares Management by 15.3% during the first quarter. Focus Partners Wealth now owns 1,902 shares of the asset manager’s stock worth $279,000 after buying an additional 252 shares during the last quarter. Finally, Geneos Wealth Management Inc. raised its holdings in Ares Management by 708.2% during the first quarter. Geneos Wealth Management Inc. now owns 493 shares of the asset manager’s stock worth $72,000 after buying an additional 432 shares during the last quarter. Institutional investors and hedge funds own 50.03% of the company’s stock.

More Ares Management News

Here are the key news stories impacting Ares Management this week:

Positive Sentiment: Record fundraising and revenue boost confidence: Ares raised a first‑quarter record ~$30 billion and reported higher revenue and GAAP net income ($142.6M), signaling strong investor demand and driving upward sentiment. Article Title
Positive Sentiment: Assets under management and flows beat expectations: AUM and fundraising topped consensus, underpinning fee growth and recurring revenue potential for the firm. Article Title
Positive Sentiment: Strong lending and deal activity: Ares closed ~$9.5B of U.S. direct lending in Q1 (≈$53B TTM) and participated in large private‑credit deals (e.g., $800M GoodLife financing with JPMorgan), supporting future fee and interest income. Article Title
Positive Sentiment: Firm says balance sheet and investor demand are resilient: Management downplayed redemption fears and AI‑related disruption, which helped calm market concerns around private credit. Article Title
Neutral Sentiment: Corporate moves and strategy: Ares announced leadership/strategy changes (COO appointment, platform reshaping including BlueCove) that could affect execution but are longer‑term in impact. Article Title
Negative Sentiment: Quarterly EPS miss and rising expenses: Reported EPS ($1.24) missed consensus (~$1.34) and realized income metrics were pressured by higher expenses — a near‑term profitability concern that analysts flagged. Article Title

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on ARES. Wolfe Research set a $210.00 price target on shares of Ares Management and gave the stock an “outperform” rating in a research report on Wednesday, January 7th. Citizens Jmp dropped their price target on shares of Ares Management from $205.00 to $190.00 and set a “market outperform” rating on the stock in a research report on Wednesday, April 22nd. Zacks Research downgraded shares of Ares Management from a “hold” rating to a “strong sell” rating in a research report on Monday, April 6th. Barclays dropped their price target on shares of Ares Management from $138.00 to $127.00 and set an “overweight” rating on the stock in a research report on Wednesday, April 8th. Finally, BMO Capital Markets dropped their price target on shares of Ares Management from $140.00 to $112.00 and set a “market perform” rating on the stock in a research report on Tuesday, March 24th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Ares Management currently has an average rating of “Moderate Buy” and an average price target of $165.31.

Get Our Latest Stock Report on ARES

Ares Management Company Profile

(Get Free Report)

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.