Ares Management signals accelerating 2026 deal momentum with record pipeline and reaffirms double-digit growth targets.
AI panic crushed SaaS and dragged down BDCs and asset managers. Trading at steep discounts and high dividend yields, we think that this is a historic opportunity. We explain why the market got it wrong and highlight rare opportunities to potentially win big.
Ares is upgraded to Strong Buy after a post-earnings selloff, despite record fundraising and AUM surpassing $600B. ARES reported a double-miss on Q4 EPS and revenue but delivered robust year-over-year growth and hiked its dividend by 20%, pushing yield near 4%. Wealth management AUM surged 69% to $66B, and real assets more than doubled, positioning ARES for growth in retail and infrastructure markets.
Ares Management Corporation (ARES) Q4 2025 Earnings Call Transcript
Ares Management Corp. has had a phenomenal long-term performance. While the recent underperformance appears to be an opportunity, the valuation is too rich for our taste. We look at the bonds yielding over 7% for an income opportunity.
ARES stock dips nearly 7.3% as Q4 earnings miss estimates due to higher expenses. Nevertheless, growth in assets under management offers some support.
While the top- and bottom-line numbers for Ares Management (ARES) give a sense of how the business performed in the quarter ended December 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Ares Management shares have declined ~30% over the past year amid private credit and AI-related concerns, with Q4 earnings missing expectations. Management fees grew 27%, and AUM surged 29% to $623 billion, driven by strong fundraising and the GCP acquisition, but higher G&A expenses pressured margins. ARES benefits from sticky, long-duration capital structures, a large AUM backlog, and a strong balance sheet, supporting visible fee growth and a 20% dividend increase.
Strong Q4 markets set the stage for potential earnings beats from ARES, VRTS and VCTR after BLK's early upside surprise.
Get a deeper insight into the potential performance of Ares Management (ARES) for the quarter ended December 2025 by going beyond Wall Street's top-and-bottom-line estimates and examining the estimates for some of its key metrics.
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
Finding stocks expected to beat quarterly earnings estimates becomes an easier task with our Zacks Earnings ESP.