Ares Management (NYSE:ARES) Announces Earnings Results

06 Feb 2026, 12:52 by Scott Moore · The Cerbat Gem

Ares Management (NYSE:ARES – Get Free Report) issued its earnings results on Thursday. The asset manager reported $1.45 earnings per share for the quarter, missing the consensus estimate of $1.71 by ($0.26), FiscalAI reports. The firm had revenue of $1.50 billion during the quarter, compared to analysts’ expectations of $1.38 billion. Ares Management had a return on equity of 16.33% and a net margin of 11.72%.During the same quarter in the prior year, the company posted $0.55 earnings per share.

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

Ares reported record scale — AUM topped $622 billion, 2025 fundraising reached a record $113 billion (Q4 $36B), and FPAUM rose 32% to $385 billion, driving management fees, FRE and after‑tax realized income per share each up >20% year‑over‑year.
The board declared a 20% year‑over‑year increase to the Q1 2026 common dividend of $1.35 per share, payable March 31, reflecting management’s confidence in cash flow and realizations.
Management expects margin and revenue tailwinds from the GCP acquisition, investments in digital infrastructure/data centers and back‑office AI initiatives, guiding 2026 FRE margins toward the high end of its annual target and anticipating the data‑center business will flip to positive FRE.
Company highlights strong portfolio fundamentals — private credit loan‑to‑value near ~40%, improving interest coverage, low and stable non‑accruals, essentially zero net realized losses in U.S. direct lending, and double‑digit EBITDA growth across key strategies, supporting earnings resilience.

Ares Management Stock Performance

Shares of NYSE ARES traded up $5.40 during midday trading on Friday, reaching $127.27. The company had a trading volume of 3,132,640 shares, compared to its average volume of 3,056,287. Ares Management has a 1 year low of $110.63 and a 1 year high of $195.26. The business’s 50-day simple moving average is $163.50 and its 200 day simple moving average is $165.65. The company has a current ratio of 0.22, a quick ratio of 0.22 and a debt-to-equity ratio of 0.62. The stock has a market cap of $41.60 billion, a P/E ratio of 54.51, a P/E/G ratio of 0.79 and a beta of 1.52.

Ares Management Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be paid a dividend of $1.35 per share. This represents a $5.40 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date is Tuesday, March 17th. This is a positive change from Ares Management’s previous quarterly dividend of $0.84. Ares Management’s dividend payout ratio (DPR) is currently 192.27%.

Insider Activity

In related news, CEO Michael J. Arougheti sold 186,197 shares of the firm’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $152.75, for a total value of $28,441,591.75. Following the completion of the transaction, the chief executive officer owned 290,997 shares in the company, valued at $44,449,791.75. This trade represents a 39.02% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Over the last 90 days, insiders sold 590,000 shares of company stock valued at $90,653,808. 36.86% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Marshall Wace LLP raised its stake in shares of Ares Management by 487.4% in the third quarter. Marshall Wace LLP now owns 912,656 shares of the asset manager’s stock worth $145,925,000 after purchasing an additional 757,293 shares during the last quarter. Balyasny Asset Management L.P. raised its position in Ares Management by 1,172.9% during the 3rd quarter. Balyasny Asset Management L.P. now owns 622,796 shares of the asset manager’s stock worth $99,579,000 after buying an additional 573,870 shares during the last quarter. Freestone Grove Partners LP purchased a new position in Ares Management during the 3rd quarter worth approximately $41,665,000. Qube Research & Technologies Ltd acquired a new stake in Ares Management during the 3rd quarter valued at approximately $34,984,000. Finally, First Trust Advisors LP boosted its holdings in shares of Ares Management by 452.6% in the 3rd quarter. First Trust Advisors LP now owns 180,673 shares of the asset manager’s stock valued at $28,888,000 after acquiring an additional 147,977 shares during the last quarter. 50.03% of the stock is owned by institutional investors and hedge funds.

Ares Management News Summary

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

Positive Sentiment: Large dividend boost — Ares raised its quarterly dividend to $1.35 (a ~60% increase), lifting yield and income appeal for shareholders.
Positive Sentiment: Assets and fundraising remain strong: Ares reported AUM crossing the $600B mark and emphasized robust fundraising momentum, supporting fee growth and long‑term revenue visibility. Ares CEO Arougheti downplays fears of AI disrupting software businesses
Positive Sentiment: Record direct‑lending origination: Ares disclosed record U.S. direct lending commitments (~$19.4B in Q4; $55.0B for 2025), showing durable deal flow in credit businesses. Ares Announces Record Fourth Quarter and Full-Year 2025 U.S. Direct Lending Origination Activity
Neutral Sentiment: Top‑line beat but mixed fundamentals — Q4 revenue of $1.50B topped consensus while EPS of $1.45 missed estimates, leaving the headline picture mixed; investors must weigh fee/AUM strength against higher operating expenses. Ares Management Posts Higher 4Q Revenue, Citing Investor Demand
Neutral Sentiment: Management view on AI — CEO Arougheti downplayed fears that AI will disrupt Ares’ software holdings and said management sees investment opportunities in AI disruption; this shifts the narrative from risk to selective opportunity but adds uncertainty. Ares sees investment opportunities in AI disruption
Negative Sentiment: EPS miss and rising expenses pressured the stock — the $1.45 EPS result missed consensus by ~$0.26 and year‑over‑year expense increases were highlighted, prompting short‑term investor concern. Ares Management Stock Falls as Q4 Earnings Miss, Expenses Rise Y/Y
Negative Sentiment: Market nervousness and AI‑driven volatility: broader AI‑led sector moves and worries about 2026 earnings/growth triggered selloffs in asset managers despite the AUM record, creating near‑term downside risk. Ares Management Corporation (NYSE:ARES) Q4 2025 earnings call transcript

Analysts Set New Price Targets

Several brokerages have issued reports on ARES. Citigroup reiterated a “market outperform” rating on shares of Ares Management in a report on Tuesday, October 21st. Oppenheimer set a $215.00 price objective on shares of Ares Management and gave the company an “outperform” rating in a report on Friday. TD Cowen restated a “buy” rating on shares of Ares Management in a report on Wednesday, January 14th. Morgan Stanley set a $178.00 price target on Ares Management in a report on Tuesday, January 27th. Finally, Keefe, Bruyette & Woods upped their price objective on Ares Management from $188.00 to $189.00 and gave the stock an “outperform” rating in a research note on Tuesday, November 4th. Thirteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Ares Management has an average rating of “Moderate Buy” and an average target price of $189.33.

Read Our Latest Stock Report on Ares Management

About Ares Management

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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.