Carlyle Q2 Earnings Beat Estimates on Higher AUM, Expenses Rise Y/Y

CG beats Q2 earnings and revenue estimates as performance revenues climb and AUM grows y/y.

Zacks Equity Research

3 min read

The Carlyle Group Inc. CG reported second-quarter 2026 post-tax distributable earnings per share of $1.07, surpassing the Zacks Consensus Estimate of 88 cents. The metric also rose from 91 cents in the year-ago quarter.

Results benefited from higher realized performance revenues and fee-related performance revenues. A rise in the assets under management (AUM) balance was another positive. However, higher expenses acted as a spoilsport.

Net income attributable to Carlyle was $137.1 million, down from $319.7 million in the year-ago quarter.

Carlyle’s Revenues & Expenses Rise

Second-quarter segmental revenues were $1.11 billion, which surpassed the Zacks Consensus Estimate of $908.8 million. The top line also rose 13% from the year-ago quarter.

Total segment fee revenues were $759.3 million, up 12.3% year over year. Fund management fees declined 5% year over year to $560.1 million, while transaction and portfolio advisory fees, net and other, jumped 130.7% to $110.5 million. Fee-related performance revenues surged 129.2% to $88.7 million.

Realized performance revenues rose 21.2% from the year-ago quarter to $314.8 million.

Total segmental expenses increased 15.7% year over year to $639.9 million.

CG’s Total AUM Rises

As of June 30, 2026, total AUM was $485.5 billion, up 4% from the prior-year quarter.

The fee-earning AUM was $334.4 billion, which rose 3% year over year. Pending fee-earning AUM was $28 billion, up 57%.

Carlyle’s Segment Performance

Global Private Equity’s total AUM was $162.7 billion as of June 30, 2026, down 1.5% year over year. The segment’s fee-related earnings were $133.6 million, down 7%. Distributable earnings were $218.5 million, down 5.8%.

Global Credit’s total AUM was $211.1 billion, up 4% year over year. Fee-related earnings were $137.6 million, up 23.5%. Distributable earnings were $158 million, up 30.7%.

Carlyle AlpInvest’s total AUM was $111.7 billion, up 15.8% year over year. Fee-related earnings were $86.5 million, up 26.6%. Distributable earnings were $95.8 million, up 22.5%.

Carlyle’s Capital Distribution Activities

In the reported quarter, CG repurchased or withheld 6.7 million shares of common stock, including shares withheld in the net share settlement of equity awards, totaling $304 million. As of June 30, 2026, $1.6 billion worth of shares were available under the authorization.

The company also declared a quarterly dividend of 35 cents per share. The dividend will be paid out on Aug. 26, 2026, to shareholders of record as of Aug. 17, 2026.

Our View on CG

A rising total AUM balance, along with higher realized performance revenues and strong fundraising, will likely support Carlyle’s revenue growth in the long run. However, rising expenses remain concerning.

Carlyle Group Inc. Price, Consensus and EPS Surprise

Carlyle Group Inc. price-consensus-eps-surprise-chart | Carlyle Group Inc. Quote

CG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Recent Developments of CG

In June 2026, Carlyle completed its previously announced acquisition of a majority stake in MAI Capital Management, a registered investment advisor focused on wealth management services for high-net-worth and ultra-high-net-worth clients.

Following the completion of the transaction, Carlyle is now the majority owner of MAI, while MAI will continue to operate independently under its existing leadership team. MAI employees and advisors will continue to hold a significant minority ownership stake in the business.

The acquisition expands Carlyle’s presence in wealth management and adds a platform with $77.3 billion in client assets managed or advised as of April 2026. The deal is expected to strengthen the company’s recurring fee-based revenue stream and complements its broader wealth management strategy, including investments in Intelliflo and iCapital Network to enhance its advisor-focused platform.

Performances of Other Asset Managers

Invesco’s IVZ second-quarter 2026 adjusted earnings of 71 cents per share surpassed the Zacks Consensus Estimate of 67 cents. The bottom line increased 97.2% from the prior-year quarter.

IVZ’s results primarily benefited from an increase in adjusted revenues and substantial growth in the assets under management (AUM) balance. Record net long-term inflows also supported the quarter. However, an increase in adjusted expenses was a headwind.

SEI Investments Co.’s SEIC second-quarter 2026 adjusted earnings per share of $1.66 surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflected a rise of 38.3% from the prior-year quarter’s actual.

SEIC’s results were aided by higher revenues and a rise in AUM. However, higher expenses acted as a spoilsport.

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