Apollo Global Management Inc. (APO) Earnings & Analysis

Latest quarter

Apollo reported Q3 FY2026 revenue of $4.7 billion, down from $9.8 billion a year earlier. On the basis used by the consensus, revenue was $1.4 billion, above the $1.3 billion estimate; adjusted earnings per share of $2.15 fell short of the $2.21 estimate.

The filing says Retirement Services revenue fell primarily because of investment-related losses, partly offset by higher net investment income and premiums. Apollo attributed those losses in part to unfavorable changes in the value of mortgage loans, reinsurance assets and trading securities as Treasury rates rose.

In Asset Management, the filing says lower investment income more than offset growth in management, advisory and transaction fees. Apollo attributed the decline in investment income primarily to lower performance allocations.

Diluted earnings per share were −$1.86, compared with $2.78 a year earlier, while operating margin fell to −31.0% from 28.0%. As of September 30, Apollo’s holding company and Asset Management businesses had $4.0 billion in cash.

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

What management said on the call

CEO Marc Rowan said Apollo’s origination pipeline was active across sectors and geographies, with capital formation following the investment opportunities the firm sourced. CFO Martin Kelly said fundraising across credit and equity, capital deployment, and growth at Athene and Athora supported management fees. He added that capital solutions fees came from transactions across several businesses and that some financing arrangements generate fees over multiple quarters or years.

Rowan said high valuations and elevated risk were prompting Apollo to reduce risk in its portfolios. In credit, he said, that means moving toward investment-grade and secured assets; in equity, it means reducing leverage and using more hybrid structures.

Kelly said Athene’s annual actuarial review reduced reported spread-related earnings, principally because of revised estimates for customers’ use of income rider features. He said the underlying net spread benefited from rising fixed-income yields and lower operating expenses, offset by higher funding costs on new business and the runoff of low-cost liabilities.

Asked about funding costs and the timing of investments, Kelly said rising rates bring both higher costs for new business and higher investment yields. He said much of the quarter’s new investment business was put to work late in the period, and those assets would contribute for a full quarter ahead. Rowan also said competition had increased in parts of the brokered insurance market.

On longer-term investment, Rowan said Apollo would spend $350.0 million on data, systems and new businesses to make private assets easier to value and trade. Asked about the opportunity, he said lending and market-making could become additional businesses, while executive James Zelter said trading had not yet made a large contribution to capital solutions fees. Rowan said Apollo would work with partners on custody and settlement, starting with credit.

Guidance

Marc Rowan said Apollo was on track for its existing full-year fee-related and spread-related earnings growth targets. Martin Kelly also discussed the following year’s outlook, including management fees and capital solutions fees.