DWS Group (DWS) Q1 2026 earnings summary

Executive summary

• Delivered solid Q1 2026 results in a volatile market, with strong investment performance, disciplined cost management, and significant year-over-year improvements in revenues, costs, profit before tax, net income, cost-income ratio, and assets under management.

• Net income rose 33% year-over-year to EUR 265 million, with EPS at EUR 1.32, both above consensus and supported by early performance fee recognition.

• Total net inflows reached EUR 11 billion, with long-term flows as a key growth driver and continued resilience in retail flows.

• Cost income ratio improved to 54.1%, down 8.1 percentage points year-on-year, reflecting ongoing efficiency gains.

• Reconfirmed full-year target of 10%-15% EPS growth, assuming constructive markets.

Financial highlights

• Revenues were EUR 821 million, up 9% year-on-year but down 9% quarter-on-quarter, mainly due to higher performance fees.

• Net income increased 33% year-on-year to EUR 265 million, but decreased 10% sequentially.

• Total costs decreased 5% year-on-year and 9% quarter-on-quarter to EUR 444 million, reflecting cost discipline.

• Management fees stable at EUR 673 million; performance and transaction fees totaled EUR 109 million, mainly from infrastructure and PIF II asset sales.

• Other revenues included EUR 18 million net interest income and EUR 15 million from Harvest, with total other revenues at EUR 39 million.

Outlook and guidance

• Full-year EPS growth target of 10%-15% reconfirmed, with cost guidance tightened to around EUR 1.80 billion.

• Aiming for cost-income ratio below 55% by 2027 and targeting 10–15% EPS growth per annum for 2026–2028.

• Expect to be at the upper end of 4%-8% of revenues from performance fees, with most remaining fees booked in Q4 2026.

• Strategic focus on digital distribution, European investment opportunities, and leveraging DB partnership.

• AUM dent in March-April (~EUR 40 billion) led to a revenue gap of about EUR 20 million, but cost actions are offsetting this.