Apollo Global Stock Dips 3.5% on Q3 Earnings Miss, Expenses Rise Y/Y

Shares of Apollo Global Management, Inc.APO lost nearly 3.5% in the early trading session after reporting lower-than-expected results. The company's third-quarter 2026 adjusted net income per share of $2.15 missed the Zacks Consensus Estimate of $2.21. The metric increased from the year-ago adjusted net income of $2.14.

Results were adversely affected by higher expenses. However, higher fee-related revenues and assets under management (AUM) balances acted as tailwinds in the quarter.

The results include certain items. After considering those, net loss attributable to Apollo Global (GAAP basis) was $1.06 billion against net income of $1.74 billion in the prior-year quarter. The loss was primarily due to unrealized mark-to-market losses on certain investments within the Retirement Services segment resulting from higher interest rates.

APO's Quarterly Revenues & Expenses Rise

Total segment revenues were $1.37 billion, surpassing the Zacks Consensus Estimate of $1.34 billion. The metric increased 20% year over year from $1.15 billion.

Management fees increased 18% year over year to $1.02 billion. Capital solutions fees and other, net, rose 37% year over year to $290 million, while fee-related performance fees declined 8% to $67 million.

Total expenses for combined segments increased 15% year over year to $572 million in the reported quarter.

Apollo Global's AUM Balance Rises

Fee-generating AUM increased 28% year over year to $880 billion. The rise was driven by strong capital formation from institutional channels, $65 billion from Athora's acquisition of Pension Insurance Corporation and robust organic growth at Athene, partially offset by outflows and realization activity.

As of Sept. 30, 2026, total AUM was $1.07 trillion, up 18% year over year. Total AUM benefited from $195 billion of inflows from Asset Management, $75 billion of gross inflows from Retirement Services and mark-to-market appreciation. This was partially offset by $77 billion of outflows and $32 billion of realization activity.

APO's Liquidity Position

As of Sept. 30, 2026, Apollo Global's holding company and Asset Management businesses had cash and cash equivalents of $3.97 billion, up from $3.41 billion as of June 30. Debt remained unchanged at $5.76 billion.

APO's Capital Distribution Update

APO repurchased $143 million of common stock during the third quarter, including $75 million of opportunistic repurchases and $68 million to substantially offset dilution.

The company declared a quarterly cash dividend of 56.25 cents per share, payable on Nov. 30, 2026, to shareholders of record as of Nov. 18. Over the last 12 months, Apollo Global returned approximately $1.5 billion to stockholders through dividends and opportunistic share repurchases.