Apollo Global Management, Inc.APO is scheduled to announce third-quarter 2026 results on Nov. 6, before market open. APO's quarterly earnings and revenues are expected to have increased from the year-ago reported levels.
In the last reported quarter, Apollo's earnings missed the Zacks Consensus Estimate. Results were primarily affected by higher expenses. However, higher assets under management (AUM) balances acted as a tailwind in the quarter.
APO's earnings beat the consensus estimate in two of the trailing four quarters and missed twice, the average surprise being 7.42%.
Apollo Global Management Inc. Price and EPS Surprise
Apollo Global Management Inc. price-eps-surprise | Apollo Global Management Inc. Quote
The Zacks Consensus Estimate for APO's earnings of $2.21 has been unchanged over the past seven days. The figure indicates a rise of 3.3% from the year-ago quarter's actual.
The consensus estimate for sales is pegged at $1.34 billion, suggesting a year-over-year rise of 16.6%.
Apollo's Recent Developments
In October 2026, the company agreed to acquire a minority stake in Mubadala Capital, the alternative asset management arm of Abu Dhabi-based Mubadala Investment Company. The deal, expected to close in the fourth quarter of 2026, is likely to strengthen Apollo's institutional relationships in the Middle East, expand its global investment network and broaden its alternative investment capabilities. The partnership could also create opportunities for joint investments and support long-term AUM growth.
Key Factors & Estimates for APO in Q3
Supported by continued institutional fundraising and demand for alternative investment strategies in the third quarter of 2026, the company's total AUM balance is expected to have improved. Although redemption pressure in private credit business amid market uncertainty remained a concern, its diversified asset classes, client base and geographic presence are likely to have supported AUM growth in the quarter to be reported.
The Zacks Consensus Estimate for the company's total AUM in the third quarter of 2026 is pegged at $1.1 trillion, which suggests a sequential rise of 2.7%.
The consensus estimate for management fees (segment earnings) is pegged at $1.0 billion, indicating a sequential rise of 3.3%.
In the third quarter of 2026, the consensus estimate for fee-related performance fees (segment earnings) is pegged at $66.9 million, indicating a rise of 3.0% from the previous quarter's reported number.
The consensus estimate for net capital solutions fees and other (segment earnings) is pegged at $241.1 million, indicating a sequential decline of 12.9%.
On the cost front, the company's continued investments in expanding its capital formation and credit investing capabilities, along with spending on ongoing growth initiatives, are likely to have increased expenses. Further, integration-related costs associated with strategic acquisitions, including Bridge Investment Group, may have added further pressure, keeping the expense base elevated in the third quarter.
What Our Model Predicts for APO
Our proven model does not conclusively predict an earnings beat for APO this time around. This is because the company does not have the right combination of the two key elements: a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP:Apollo has an Earnings ESP of -0.07%.
Zacks Rank:APO currently has a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank stocks here.
Performances of Other Asset Managers
T. Rowe Price Group, Inc.TROW reported third-quarter 2026 adjusted earnings per share (EPS) of $2.86, which surpassed the Zacks Consensus Estimate of $2.58. Further, the bottom line increased 1.8% year over year.
TROW's results benefited from higher investment advisory fees, increased average assets under management and strong capital allocation-based income. However, substantial net client outflows and higher adjusted operating expenses were headwinds.
BlackRock's BLK third-quarter 2026 adjusted earnings of $15.93 per share surpassed the Zacks Consensus Estimate of $13.97. The figure reflects a 38% rise from the year-ago quarter.
BLK's results benefited from record assets under management, higher revenues, robust asset inflows and improved operating performance. However, higher expenses weighed on results.
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Apollo Global Management Inc. (APO) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
