Apollo Global Management (APO) Q1 2026 earnings summary

Executive summary

• Achieved record fee-related earnings (FRE) of $728 million, up 30% year-over-year, and surpassed $1.03 trillion in assets under management, driven by strong inflows, innovation, and margin expansion.

• Adjusted Net Income was $1.2 billion ($1.94 per share) for Q1 2026, while GAAP net loss attributable to common stockholders was $1.93 billion, primarily due to a $1.7 billion Bermuda deferred tax asset valuation allowance.

• Declared a cash dividend of $0.5625 per common share and $0.8438 per mandatory convertible preferred share for Q1 2026.

• Total assets under management (AUM) grew 31% year-over-year, with fee-generating AUM at $836 billion and strong origination activity, including $65 billion from the Athora-PIC transaction.

• Continued focus on innovation, discipline, and new product development across investment grade credit and retirement solutions.

Financial highlights

• Management fees increased up to 37% year-over-year, driven by third-party fundraising, capital deployment, and acquisitions.

• Fee Related Earnings (FRE) for Asset Management grew 30% to $728 million; Spread Related Earnings (SRE) for Retirement Services was $719 million, down 11% year-over-year.

• Net investment income in Retirement Services rose 18% to $5.14 billion, but investment-related losses widened to $(2.08) billion due to unfavorable changes in fair value.

• Principal Investing Income increased to $75 million, driven by higher realized performance fees.

• Record quarterly inflows of $115 billion, with dry powder at $74 billion, 70% in credit strategies.

Outlook and guidance

• Reaffirmed 20%+ FRE growth and 10% SRE growth for 2026, assuming 11% alts return, with continued AUM growth supported by institutional demand and strategic acquisitions.

• Management expressed confidence in continued growth, emphasizing client trust, value creation, and innovation.

• Cautioned that future dividends are at the board's discretion and not guaranteed.

• Expect net spread stabilization in Athene as prepayment headwinds dissipate and profitable post-COVID business rolls off.

• Anticipate strong origination and inflows to continue, supporting future ACS revenues.