KKR Q2 Earnings Surpass Estimates as AUM Rises Y/Y, Stock Gains

KKR & Co. Inc.’s KKR second-quarter 2025 adjusted net income per share of $1.18 topped the Zacks Consensus Estimate of $1.17. The bottom line increased from $1.09 in the prior-year quarter.

KKR shares rallied nearly 1% in the pre-market trading on better-than-expected results.

Results have primarily reflected impressive growth in assets under management (AUM) and transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.

Net income attributable to the company (GAAP basis) was $472.4 million compared with the net income of $667.9 million in the year-ago quarter.

KKR’s Segmental Revenues & Expenses Increase

Total segment revenues amounted to $1.28 billion, jumping 15.9% on a year-over-year basis. The rise was driven by higher management fees, fee-related performance revenues, and transaction and monitoring fees. The top line beat the Zacks Consensus Estimate by 0.4%.

Total segment expenses increased 12.8% to $396.9 million.

As of June 30, 2025, total AUM grew 14% year over year to $686 billion. Further, fee-paying AUM summed $556 billion, which increased 14.1% from the year-ago quarter.

KKR’s Total Operating Earnings & Fee-Related Earnings Rise

Total operating earnings grew 13.8% year over year to $1.19 billion. 

The company posted fee-related earnings of $886.8 million, up 17.4% year over year.

Our Viewpoint on KKR

The company will continue utilizing lucrative investment opportunities on the back of its efficient fundraising capability in the quarters ahead. Significant growth in fee-related earnings and total operating earnings is aiding the company’s financials. However, due to the company’s continuous expansion of its global footprint, expenses are likely to remain elevated. The current tough operating environment is another concern.

KKR & Co. Inc. Price, Consensus and EPS Surprise

KKR & Co. Inc. price-consensus-eps-surprise-chart | KKR & Co. Inc. Quote

Currently, KKR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Asset Managers

Blackstone’s BX second-quarter 2025 distributable earnings of $1.21 per share surpassed the Zacks Consensus Estimate of $1.10. The figure reflects a rise of 26% from the prior-year quarter.

BX’s results benefited from higher segment revenues and a rise in the AUM balance. However, an increase in GAAP expenses was a headwind.

Lazard Inc.’s LAZ second-quarter 2025 adjusted earnings per share of 52 cents beat the Zacks Consensus Estimate of 38 cents. This compared favorably with earnings of 49 cents per share in the year-ago quarter.

LAZ’s results were positively impacted by increases in revenues in the financial advisory and asset management sectors. A rise in assets under management balances was another positive. However, a decrease in revenues in the corporate segment and elevated operating expenses acted as a spoilsport.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research