Affiliated Managers Group, Inc. (AMG) Earnings & Analysis

Latest quarter

AMG reported Q2 FY2026 revenue of $640.7 million, above the consensus of $557.9 million. Its adjusted earnings per share were $8.29, compared with the consensus of $7.85. Diluted earnings per share were $6.95, up from $2.80 a year earlier.

Revenue rose from $493.2 million a year earlier. AMG’s filing attributed the increase to higher asset-based and performance-based fees, with the latter primarily in private markets strategies. The company said aggregate fees across its affiliates rose as their average assets under management increased; those fees include firms whose revenue AMG does not consolidate.

The filing also said equity method income rose, contributing to the increase in net income attributable to the controlling interest. Operating margin was 30.4%, compared with 23.3% a year earlier. AMG recorded free cash flow of $239.0 million, compared with $229.4 million in Q2 FY2025.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Jay Horgen said AMG’s assets under management ended Q2 at $942 billion, supported by market gains and net inflows. Affiliates attracted $13 billion in net inflows overall, including $29 billion into alternative strategies, he said. Alternatives accounted for more than 60% of earnings, and Horgen expects their contribution to grow over the next 12 months.

CFO Dava Ritchea said private-market affiliates raised $8 billion during the quarter, primarily in infrastructure, secondary investments and specialized strategies. She said liquid alternatives also drew inflows from wealth, institutional and retail clients. By contrast, long-only equity strategies had $14 billion in net outflows, which Ritchea attributed to industry and performance headwinds.

Asked about tax-aware investing and liquid alternatives, Horgen described tax awareness as a “structural mindset shift in individual investor behavior.” He said AMG experienced the trend most directly through affiliate AQR, while also seeing interest in affiliates investing in real estate, infrastructure and energy transition. Tax-aware strategies represented just over 10% of AMG’s earnings, he said.

Ritchea said the shift toward alternatives had increased AMG’s overall fee rate and margin profile. She also said fee-related earnings, excluding net performance and catch-up fees, grew 39% year over year, helped by inflows, investment performance and margin expansion at some large affiliates.

On flows ahead, Ritchea said she expected quarterly volatility in long-only equities despite an improving longer-term trend. She expected multi-asset and fixed-income flows to return to modestly positive organic growth in Q3, while seasonal Q2 outflows could recur.

Horgen said AMG saw an increase in new investment opportunities during Q2 that continued into Q3. Ritchea said the company repurchased approximately $189 million of shares in Q2 and approximately $375 million in the first half.

Guidance

Ritchea said AMG expects Q3 adjusted EBITDA of $315 million to $325 million and economic earnings per share of $8.43 to $8.71. She said the EBITDA outlook was based on current assets under management and included net performance fees of up to $10 million.