KKR & Co. Inc. KKR is slated to report first-quarter 2026 results on May 5, 2026, before the opening bell. Its earnings and revenues in the quarter are expected to have increased year over year.
In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate. Its results were adversely affected by an increase in expenses. Nonetheless, growth in assets under management (AUM) and fee-paying AUM acted as tailwinds.
The company boasts an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average beat being 2.12%.
KKR & Co. Inc. Price and EPS Surprise
KKR & Co. Inc. price-eps-surprise | KKR & Co. Inc. Quote
Earnings & Sales Estimates for KKR
The Zacks Consensus Estimate for earnings for the first quarter of 2026 is pegged at $1.28 per share, which has been revised downward over the past month. The figure indicates an increase of 11.3% from the year-ago quarter’s reported number.
The consensus estimate for sales for the first quarter of 2026 is pegged at $1.43 billion, reflecting a 19.1% year-over-year increase.
KKR & Co.’s Recent Developments
In February 2026, KKR announced an agreement to acquire Arctos Partners for $1.4 billion, expanding its presence in sports franchise investing and GP solutions. The deal adds Arctos’ roughly $15 billion AUM platform and strengthens KKR’s exposure to long-duration capital strategies. It is also expected to support the launch of KKR Solutions, an integrated platform combining sports investing, GP solutions and secondaries, which could scale to more than $100 billion in AUM over time.
Earlier, in January 2026, the company also divested several business units of Janney Montgomery Scott LLC, a financial services firm in which it holds a majority stake, to Huntington Bancshares (HBAN). The transaction with HBAN allows KKR to monetize non-core assets while sharpening its focus on its core alternative investment and asset management businesses.
Now, let us discuss the factors that are likely to have influenced KKR’s first-quarter performance.
Key Factors & Estimates for KKR in Q1
KKR has been witnessing increases in fee-earning AUM and total AUM, driven by its diversified product and revenue mix, superior position in the alternative investments space and net inflows. Given the increased client activity in the first quarter, KKR is expected to have recorded a rise in AUM balance as inflows strengthened.
The Zacks Consensus Estimate for AUM is pegged at $766.9 billion, suggesting a rise of 3.1% from the prior-year quarter. Likewise, the consensus estimate for fee-paying AUM is pegged at $624.2 billion, indicating a 3.3% year-over-year increase.
The Zacks Consensus Estimate for management fees (segment revenues) for the to-be-reported quarter is pegged at $1.15 billion, suggesting growth of 2.2% from the prior-year quarter. The consensus estimate for fee-related performance revenues (segment revenues) of $22.6 million implies an increase of 32.6% on a year-over-year basis.
Additionally, KKR expects profits from deal exits to have been limited in the to-be-reported quarter. The company’s preliminary estimate, between Jan. 1 and March 23, 2026, for total realized performance income and net realized investment income is more than $700 million, implying an increase from $475 million in the prior-year quarter.
Talking about expenses, KKR is likely to have reported elevated expenses in the to-be-reported quarter, driven by higher employee compensation, commission and reinsurance expenses. The company anticipates the expense to be elevated due to higher placement fees and growing fundraising activities.
What Our Model Predicts for KKR
Our proven model does not conclusively predict an earnings beat for KKR this time. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for KKR is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of KKR'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 assets under management and elevated expenses remained headwinds.
BlackRock’s BLK first-quarter 2026 adjusted earnings of $12.53 per share handily surpassed the Zacks Consensus Estimate of $11.96. The figure reflects a 10.9% rise from the year-ago quarter.
Results benefited from a rise in revenues. AUM balance witnessed robust year-over-year growth, driven by net inflows. However, higher expenses were a headwind for BLK.
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This article originally published on Zacks Investment Research (zacks.com).