Key financial results
- Asset Management: Fee-related earnings reached a record $802 million, representing a 23% year-over-year increase and a 2% quarter-over-quarter increase.
We generated record fee-related earnings of $802 million or $1.28 per share
- Retirement Services: Spread-related earnings excluding notable items were $909 million, or $1.46 per share.
record spread-related earnings ex notable items of $909 million or $1.46 per share.
- Combined: Combined adjusted net income totaled $1.3 billion, or $2.07 per share and $2.15 per share excluding notable items.
Combined, adjusted net income totaled $1.3 billion or $2.07 per share and $2.15 per share ex notable items.
- Asset Management: Management fee growth was 18% year-over-year and 2% quarter-over-quarter.
Management fee growth, 18% year-over-year, 2% quarter-over-quarter.
- Asset Management: Capital solutions fees reached a record $290 million for the quarter.
ACS fees, $290 million, 6 straight quarter greater than $200 million
Business segment results
- Origination: Origination activity across the firm reached a record $114 billion for the quarter, bringing the 12-month total to $356 billion.
Origination for the quarter was $114 billion
- Credit: Debt origination totaled $98 billion, with more than 80% classified as investment grade and an average rating of BBB+.
Of the record $114 billion of origination activity in the quarter, $98 billion was debt, of which more than 80% was investment grade
- Credit: Investment-grade origination generated excess spread of 285 basis points over treasuries, while sub-IG origination generated 430 basis points over treasuries.
On investment-grade origination, we generated excess spread of 285 basis points over treasuries
- Capital Formation: Asset Management capital formation was $35 billion, and Athene inflows reached $19 billion, totaling $53 billion in inflows for the quarter.
Capital formation follows attractive origination, was $53 billion for the quarter, Asset Management at $35 billion and Athene at $19 billion.
- Athene: Athene net invested assets grew 13% year-over-year to $322 billion.
Athene's net invested assets grew 13% year-over-year to $322 billion.
- Athene: Athene retail contributed $10 billion in inflows, funding agreements added $6 billion, and flow reinsurance added $2 billion.
retail contributed $10 billion, with RILA setting its third straight record of over $1 billion for the quarter. And funding agreements added $6 billion, and flow reinsurance, $2 billion, respectively.
- Athene: The annual actuarial assumption review at Athene resulted in a $65 million unfavorable impact to reported spread-related earnings due to revisions in estimated usage of income rider features.
The actuarial assumption review resulted in a $65 million unfavorable impact to reported SRE
- Athene: Reported net spread ex notables for Athene was 114 basis points, or 121 basis points when adjusted for an 11% long-term alts return expectation.
Capital allocation
- Share Repurchases: The company deployed approximately $140 million for share repurchases during the quarter, half of which was opportunistic.
we deployed approximately $140 million this quarter for share repurchases, half of which was opportunistic.
- Shareholder Returns: Over the past 12 months, Apollo returned $2.7 billion to shareholders through dividends and buybacks combined while allocating nearly $750 million to strategic growth initiatives.
Over the last 12 months, we've returned $2.7 billion to shareholders through dividends and buybacks combined, while allocating nearly $750 million to strategic growth initiatives.
- Dividend: Management reiterated its intent to grow the dividend by roughly half the rate of fee-related earnings growth over time.
We intend to grow our dividend by roughly half the rate of FRE growth over time.
Industry trends and dynamics
- Macro Trends: Management noted a global industrial renaissance driven by historic capital investment across infrastructure, energy, defense, manufacturing, and compute.
historic capital investment across infrastructure, and energy, defense, manufacturing and compute.
- Public vs Private: Public markets are becoming increasingly concentrated, correlated, and indexed, driving investors to seek alternatives.
convergence of public and private markets, driven by public markets being increasingly concentrated, correlated and indexed.
- Regulation: The NAIC released a public memo addressing regulatory arbitrage in offshore jurisdictions, pointing to serious and urgent solvency concerns requiring immediate action.
NAIC took a massive step forward in their 10/26 public memo, to address what they call blatant regulatory arbitrage in offshore jurisdictions.
Competitive landscape
- Positioning: Apollo acts as a principal rather than a purely intermediary agent, maintaining rigorous focus on principal-based returns and risk protection.
The market understands that we are a principal in this and not just an agent.
- Market Structure: The firm is driving industry market structure changes by implementing estimated daily value for its entire credit business and participating in the ICE venture.
On September 30, we went to estimated daily value for the entirety of our credit business.
Macroeconomic environment
- Valuations: Management observed high valuations across almost all markets and relatively elevated risk, prompting a defensive posture.
We look out and we see valuations in almost all markets relatively high. We see risk relatively elevated.
- Risk Factors: Off the field, governments are levered, geopolitical resets are underway, and inflationary pressures are putting an upward bias on rates.
Growth opportunities and strategies
- Client Expansion: Apollo aims to expand beyond its traditional institutional client base into five new buyer groups, including individuals, insurance companies, debt/equity buckets, traditional asset managers, and DC/401(k) plans.
- Technology Investments: The firm is planning to incur approximately $350 million of planned expenses over the next 24 months to upgrade technologies, migrate systems, and invest in data and Austin-based operations.
Over the next 24 months, we will incur roughly $350 million of planned expenses.
- Products: The AMAPS program reached $30 billion in assets across six issuances, and the firm launched direct lending strategy ADL 3 ahead of schedule.
sixth issuance at quarter-end brings the program to $30 billion in just over a year.
Financial guidance and outlook
- 2026 Guidance: Management expects 20% plus fee-related earnings growth for full-year 2026.
I think we're very much on track for our 20% plus FRE growth for '26
- 2026 Guidance: Management expects 10% spread-related earnings growth for full-year 2026.
and our 10% SRE growth for '26.
- 2027 Outlook: For 2027, the company expects 20% plus fee-related earnings growth, underpinned by 15% plus management fee growth and continued growth in capital solutions fees.
Looking specifically to 2027, we expect 20% plus FRE growth, underpinned by 15% plus management fee growth
- 2027 Outlook: The company expects to deliver 10% spread-related earnings growth in 2027, assuming an 11% alts return.
And looking ahead, we also expect to deliver 10% SRE growth in 2027, assuming an 11% alts return
- Q4 Outlook: Expected Q4 spread-related earnings are projected at approximately $1 billion.
support our expected Q4 SRE earnings of approximately $1 billion
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Fee-related earnings | $802 million | Up 23% year-over-year and 2% quarter-over-quarter |
| Spread-related earnings ex notable items | $909 million | Up 9% year-over-year and 1% quarter-over-quarter |
| Adjusted net income | $1.3 billion | Not stated |
| Capital solutions fees | $290 million | Not stated |
| Total originations | $114 billion | Not stated |
| Total inflows | $53 billion | Not stated |
How management sounded
Balanced (+35 on our -100 to +100 scale). Management emphasized strong operating momentum, record earnings, and robust pipelines across asset management and retirement services, while noting proactive risk management. Management sounded more upbeat than on 20% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- Regulatory developments from the NAIC regarding offshore and onshore reinsurance capital requirements.
- The progression and deployment of the $350 million planned investment in technology, data, and Austin operations over the next 24 months.
- The closing and integration of the minority equity investment in Mubadala Capital (MCAM).
Earlier calls
- Q2 2026 (Aug 4, 2026), tone Balanced: Apollo reported record second quarter fee-related earnings of $785 million and spread-related earnings of $877 million, driven by strong momentum across origination, capital formation, and asset management.
