Ares Management (NYSE:ARES) Announces Quarterly Earnings Results

Ares Management (NYSE:ARES) posted its earnings results on Thursday. The asset manager reported $1.26 earnings per share for the quarter, beating the consensus estimate of $1.25 by $0.01, FiscalAI reports. Ares Management had a return on equity of 25.74% and a net margin of 7.51%. The company had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.24 billion. During the same quarter in the prior year, the company earned $1.15 earnings per share. Ares Management’s revenue was down 13.5% compared to the same quarter last year.

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

• Strong third-quarter growth: AUM rose 16% year over year to $691 billion and fee-paying AUM increased 13% to $416 billion. Management fees grew 10% to nearly $1.1 billion, while fee-related earnings increased 19% year to date.
• Fundraising momentum remains robust: Ares raised more than $31 billion in gross capital during the quarter and expects another record fundraising year. Recent successes included an $8 billion first close for U.S. senior direct lending funds, a $4 billion Japan logistics fund close, and strong infrastructure and secondaries demand.
• Significant embedded earnings visibility: The firm ended the quarter with $174 billion of available capital, including $117 billion of AUM not yet paying fees. Deployment or stabilization of these assets could generate more than $800 million in potential incremental annual management fees.
• Diversification and wealth-channel expansion are accelerating: Wealth AUM increased 41% year over year to $82 billion, supported by record inflows into core infrastructure and a broad suite of evergreen products. Infrastructure AUM grew more than 50% over the past year, while secondaries AUM rose approximately 70% over two years.
• U.S. direct-lending activity was temporarily slower and realizations remain delayed: Muted M&A reduced third-quarter deployment, although management cited record pipelines and an expected fourth-quarter pickup. Slower transaction activity pushed some European-style performance-fee payments into later periods, leading Ares to forecast 2026 realized net performance income of $300 million–$325 million.

Ares Management Trading Up 0.5%

Shares of Ares Management stock traded up $0.69 during mid-day trading on Friday, hitting $128.16. 3,191,806 shares of the stock were exchanged, compared to its average volume of 2,207,666. Ares Management has a twelve month low of $95.80 and a twelve month high of $181.19. The stock has a market capitalization of $42.33 billion, a price-to-earnings ratio of 103.35, a price-to-earnings-growth ratio of 1.16 and a beta of 1.53. The company has a 50-day simple moving average of $126.00 and a 200 day simple moving average of $125.26. The company has a current ratio of 0.26, a quick ratio of 0.26 and a debt-to-equity ratio of 1.00.

Ares Management Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Thursday, December 17th will be issued a $1.35 dividend. This represents a $5.40 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date is Thursday, December 17th. Ares Management’s dividend payout ratio is 247.71%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. Morgan Stanley set a $149.00 price objective on shares of Ares Management in a research note on Friday, October 16th. Oppenheimer upped their price target on shares of Ares Management from $151.00 to $162.00 and gave the company an “outperform” rating in a report on Thursday, August 27th. TD Cowen lowered their price target on shares of Ares Management from $159.00 to $158.00 and set a “buy” rating on the stock in a research report on Friday. Wall Street Zen cut shares of Ares Management from a “hold” rating to a “sell” rating in a research note on Saturday, July 4th. Finally, Royal Bank Of Canada lifted their price objective on Ares Management from $168.00 to $171.00 and gave the stock an “outperform” rating in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $146.21.

Key Ares Management News

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

• Positive Sentiment: Third-quarter adjusted EPS came in at $1.26, narrowly exceeding the $1.25 consensus estimate, while revenue of $1.43 billion substantially topped expectations of $1.24 billion. Assets under management rose to approximately $690.6 billion, supported by higher management fees and capital inflows. Ares Q3 Earnings Beat Estimates
• Positive Sentiment: Fundraising momentum remains strong: Ares raised more than $31 billion in gross commitments during the quarter, including an $8 billion first close for its flagship credit fund, and invested approximately $35 billion. Management also said it is positioned for a potentially record fundraising year. Ares Flagship Credit Fund First Close
• Positive Sentiment: Direct-lending activity was substantial, with $6.3 billion of U.S. commitments closed across 55 transactions in the quarter and $43.4 billion over the past 12 months. Ares also expects $300 million to $325 million of 2026 net realized performance income, including $115 million to $125 million in the fourth quarter. Ares Direct Lending Activity
• Positive Sentiment: Analysts increased their targets: Barclays raised its target to $151, Wells Fargo to $141, RBC to $171 and TD Cowen maintained a buy rating with a $158 target. These targets imply meaningful potential upside and may support the stock’s advance. Analyst Price Target Changes
• Positive Sentiment: Ares declared a quarterly dividend of $1.35 per share, equivalent to $5.40 annually and a yield of approximately 4.2%, enhancing the stock’s income appeal. Ares Third Quarter Results
• Neutral Sentiment: Keefe, Bruyette & Woods lifted its target from $119 to $130 but retained a market-perform rating, suggesting limited upside relative to the more bullish analyst views. KBW Ares Rating
• Negative Sentiment: Despite the adjusted earnings beat, GAAP net income was $85.3 million and revenue declined 13.5% year over year, highlighting pressure from weaker realized performance income and potentially tempering the market’s response to the otherwise strong operating metrics. Ares Q3 Income Declines

About Ares Management

Ares Management Corporation (NYSE: ARES) is a global alternative investment manager that provides investment solutions across credit, private equity, real assets and secondaries. The company manages capital on behalf of institutional investors, pension funds, insurance companies, sovereign wealth funds, family offices and individual investors.

Its investment activities include direct lending and other credit strategies, control and minority investments in private companies, real estate and infrastructure investments, and secondary-market transactions involving private assets and fund interests.