Cohen & Steers (CNS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 8.3% year-over-year to $145.6 million, with diluted EPS of $0.82 (GAAP) and $0.79 (as adjusted), and net income up 6.5% year-over-year to $42.4 million; AUM reached $93.1 billion, up 6.3% year-over-year, driven by $2.7 billion in market appreciation and positive net inflows.

• Operating margin improved to 34.4% (GAAP) and 35.1% (as adjusted), up from 33.6% in the prior year quarter and 28.0% sequentially.

• Net inflows totaled $497 million, with strong momentum in open-end funds, active ETFs, and advisory channels, though subadvisory saw outflows.

• 86% of AUM outperformed benchmarks on a one-year basis, with three- and five-year outperformance rates above 97%; 95% of open-end fund AUM is rated four or five stars by Morningstar.

• The firm advanced growth initiatives in ETF platforming, non-traded REITs, and launched a new listed private real estate LP for institutions.

Financial highlights

• Total revenue was $145.6 million, up 1.3% sequentially and 8.3% year-over-year; operating income was $50.7 million, with operating margin at 35.1% as adjusted.

• Expenses increased due to higher compensation, distribution, and IT costs; compensation ratio held steady at 40%.

• Cash, cash equivalents, and liquid seed investments totaled $342.9 million at quarter-end.

• Market appreciation contributed $2.7 billion to AUM in Q1 2026, reversing prior quarter's depreciation.

• Net inflows were $497 million, down from $1.2 billion in Q4 2025.

Outlook and guidance

• Compensation ratio expected to remain at 40% for 2026; G&A expenses projected to rise mid-single digits year-over-year.

• Effective tax rate guidance for 2026 is 25.5% as adjusted; actual effective tax rate was 27.4%.

• Management remains constructive on long-term benefits of blending listed and private real estate and expects continued positive flows in global real estate strategies.

• Forward-looking statements are subject to risks and uncertainties, referencing the latest 10-K for details.