Affiliated Managers Group Inc.’s AMG first-quarter 2026 economic earnings of $8.23 per share handily outpaced the Zacks Consensus Estimate of $8.10. The bottom line also jumped 58.3% from the prior-year quarter.
Shares of the company rallied 1.8% in pre-market trading following impressive assets under management (AUM) balance growth, indicating the success of the company’s strategy of pivoting toward alternatives.
Results benefited from record AUM balance and higher revenues. Also, the company had a robust liquidity position. A rise in expenses was the undermining factor.
Economic net income was $224.6 million, up 41.5% year over year. Our estimate for the metric was $219.3 million.
AMG’s Revenues Rise, Expenses Up
Quarterly total revenues rose 9.7% year over year to $544.9 million. The top line beat the Zacks Consensus Estimate of $543 million.
Adjusted EBITDA was $317.3 million, up 39%. We had projected the metric to be $310.4 million.
Total consolidated expenses rose 10.7% to $505.9 million. We had estimated total expenses to be $484.2 million.
Affiliated Managers’ AUM Jumps
As of March 31, 2026, total AUM was a record $882 billion, which surged 23.8%. Our estimate for total AUM was $843.9 billion.
Average AUM totaled $881.7 billion, up 23.8% year over year.
Net client cash inflows were $22.2 billion in the reported quarter, reflecting ongoing momentum in alternative strategies.
AMG’s Capital & Liquidity Position Decent
As of March 31, 2026, Affiliated Managers had $376.1 million in cash and cash equivalents compared with $586 million as of Dec. 31, 2025. The company had $2.92 billion of debt, up from $2.69 billion as of Dec. 31, 2025.
Stockholders’ equity as of March 31, 2026, was $3.09 billion, down from $3.24 billion as of Dec. 31, 2025.
Update on AMG Share Repurchases
During the first quarter, Affiliated Managers repurchased shares worth $186 million.
Our View on Affiliated Managers
Affiliated Managers is well-positioned for growth given the successful partnerships, focus on alternative strategies, global distribution capability and a diverse product mix. Substantial intangible assets on the company's balance sheet and elevated expense levels remain major concerns.
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise
Affiliated Managers Group, Inc. price-consensus-eps-surprise-chart | Affiliated Managers Group, Inc. Quote
Affiliated Managers currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of AMG’s Peers
Franklin Resources Inc. BEN reported second-quarter fiscal 2026 (ended March 31, 2026) adjusted earnings of 71 cents per share, which surpassed the Zacks Consensus Estimate of 55 cents per share. Also, the bottom line compared favorably with 47 cents reported in the year-ago quarter.
BEN’s results benefited from higher revenues. However, a slight decline in AUM and elevated expenses remained headwinds.
Blackstone’s BX first-quarter 2026 distributable earnings of $1.36 per share surpassed the Zacks Consensus Estimate of $1.33. The figure soared 25% from the prior-year quarter.
BX’s results benefited from a rise in AUM balance and higher revenues. However, an increase in GAAP expenses was the undermining factor.
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