KKR & Co. Inc. Common Stock (NYSE:KKR) reported a strong second-quarter FY26 earnings beat. Adjusted EPS of $1.63 surpassed the analyst estimate of $1.41.

Revenue of $2.763 billion exceeded the $2.569 billion consensus estimate. Fee Related Earnings (FRE) rose 37% year over year (Y/Y) to $1.2 billion, and total Operating Earnings (TOE) rose 29% Y/Y to $1.5 billion in the quarter.

The company also declared a regular quarterly dividend of $0.195 per share of common stock.

Co-CEOs Joseph Y. Bae and Scott C. Nuttall said strong capital returns to clients drove KKR’s highest-ever monetization quarter and supported record new capital inflows over the past 12 months.

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KKR completed the strategic acquisition of Arctos Partners on May 4, 2026. Arctos, a leading institutional investor in professional sports franchise stakes and asset management solutions for sponsors, had $20 billion in AUM as of June 30, 2026, and is included within KKR’s Private Equity segment.

Broad-based AUM Growth

Assets under management (AUM) increased 16% Y/Y to $796 billion, while fee-paying assets under management (FPAUM) rose 15% Y/Y to $638 billion in the quarter. The firm raised $34 billion of new capital during the quarter, while deploying $24 billion during the quarter.

Perpetual Capital grew 16% Y/Y to $334 billion, aided by the organic growth of Global Atlantic and inflows into its K-Series vehicles. Perpetual Capital represents 42% of AUM.

Private Equity AUM increased 19% Y/Y to $255 billion, led by $10 billion of organic new capital raised during the quarter. New fundraising was primarily driven by Asian Fund V, Arctos Keystone Partners Fund I, and K-Series Private Equity. KKR invested $5 billion during the quarter, with deployment mainly focused on traditional private equity opportunities in North America and Asia.

Also, Real Assets AUM increased 18% (Y/Y) to $211 billion, aided by $16 billion of organic new capital raised during the quarter. Fundraising during the quarter was primarily driven by Helix Digital Infrastructure, K-Series Infrastructure, Asia Infrastructure III, and Global Infrastructure V. KKR deployed $7 billion in capital during the quarter, aided by infrastructure opportunities across the U.S. and Europe, along with Asia real estate equity and U.S. real estate credit.

Credit and Liquid Strategies AUM increased 1% sequentially and 13% year over year to $331 billion, supported by $9 billion of organic new capital raised during the quarter and $24 billion year to date. Fund inflows were primarily driven by high-grade asset-based finance activity, CLO issuances, and contributions from Global Atlantic.

KKR Stock Price Activity: KKR shares were down 0.77% at $98.52 on Thursday, according to Benzinga Pro data.

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