Key highlights
- Fee Related Earnings reached a record $785 million, representing a 25 percent increase year-over-year
- Spread Related Earnings grew 11 percent to a record $877 million, supported by Athene retirement services
- Quarterly origination volume reached $74 billion, contributing to a 12-month total of approximately $320 billion
- Total Adjusted Net Income reached $1.3 billion, or $2.11 per share for the quarter
- Management reaffirmed 2026 growth targets of 20 percent plus for FRE and 10 percent for SRE
- The firm launched a daily pricing initiative intended to cover 100 percent of its credit assets by October 2026
Financial Performance
Apollo reported record financial results for the quarter, anchored by $785 million in fee-related earnings, an 8 percent increase sequentially and 25 percent growth compared to the prior year. This performance was bolstered by record spread-related earnings of $877 million, primarily through the Athene segment. Total adjusted net income reached $1.3 billion, equivalent to $2.11 per share. Total assets under management (AUM) reached $840 billion, driven by $60 billion in organic inflows, the highest quarterly volume in the company's history. The asset management segment contributed $38 billion of these inflows, while Athene accounted for $22 billion.
Up 0.8% since our story on 5 Oct: $115.35 when we broke it → $116.28 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.
Show the prices
| 14 Sep | $128.31 |
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| 15 Sep | $127.00 |
| 16 Sep | $124.53 |
| 17 Sep | $126.00 |
| 18 Sep | $125.91 |
| 21 Sep | $127.91 |
| 22 Sep | $124.15 |
| 23 Sep | $124.36 |
| 24 Sep | $120.69 |
| 25 Sep | $121.69 |
| 28 Sep | $119.00 |
| 29 Sep | $119.00 |
| 30 Sep | $116.06 |
| 1 Oct | $114.34 |
| 2 Oct | $114.02 |
| 5 Oct | $115.35 |
| 6 Oct | $115.95 |
| 7 Oct | $115.55 |
| 8 Oct | $115.30 |
| 9 Oct | $118.65 |
| 12 Oct | $119.22 |
| 13 Oct | $116.28 |
Management Outlook
Management confirmed that its 2026 growth targets remain on track, with an expectation of maintaining 20 percent or higher growth in fee-related earnings and 10 percent growth in spread-related earnings. The firm is targeting $85 billion in full-year inflows for Athene and expects capital solutions fees to continue tracking toward a full-year 2026 target of approximately 100 basis points. Executives highlighted the ongoing expansion into adjacent markets, including market-making and private asset lending, as key drivers for long-term recurring fee revenue.
Business Overview
Apollo Global Management operates across three primary segments: Yield, Hybrid, and Equity. The business is fundamentally divided between its Asset Management division, which generates fee-related earnings from third-party capital, and its Retirement Services business, Athene, which generates spread-related earnings. A significant portion of the firm's growth is derived from its origination ecosystem, which reached $74 billion this quarter. This includes high-profile transactions such as the landmark $35 billion Broadcom financing, which represents the largest private credit financing to date.
Sector Dynamics
During the call, leadership discussed the ongoing convergence of public and private markets, noting that investors increasingly demand the same structural transparency in private credit that exists in public markets. Apollo is addressing this through a structural initiative to provide daily pricing for its credit assets, aiming for full coverage by late 2026. This move is intended to facilitate greater secondary market liquidity and support the evolution of private investment-grade credit from a niche asset class into a mainstream replacement for traditional fixed income.
What to Watch
- Completion of the daily pricing initiative for the entire credit portfolio by the end of October 2026
- Recognition of fee revenue from the $35 billion Broadcom financing over future quarters
- Progress toward the target of $85 billion in total organic inflows for Athene by year-end
- Expansion of the ICE identifiers partnership beyond the initial 2,000 live IDs
- Development of the new innovation-focused office in Austin, Texas
Chief Executive Commentary
“Second quarter was really all about momentum. We are seeing momentum across the business.”
Management commentary
“Second quarter was really all about momentum. We are seeing momentum across the business.”
“The totality of our credit business will be 100% daily pricing by 9:30.”
| Share price | $115.35 |
|---|---|
| Market cap | $68.1B |
| Revenue (annual) | $32.0B |
| P/E (TTM) | 41.3× |
| 1-month price change | -12.81% |
| Sector | Financial ServicesAsset Management |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
SEC filing by Apollo Global Management announcing its quarterly financial results and earnings conference call highlights.
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