Apollo Global Stock Up as Q2 Earnings Beat Estimates, AUM Rises Y/Y

Shares of Apollo Global Management, LLC APO rose 2.3% in the early market trading session today on better-than-expected results. Its second-quarter 2025 adjusted net income per share of $1.92 surpassed the Zacks Consensus Estimate of $1.85. Further, the reported figure compared favorably with the adjusted net income of $1.64 in the year-ago period.

Results were primarily aided by an increased assets under management (AUM) balance. However, rising expenses acted as a headwind in the quarter.

GAAP net income attributable to Apollo Global was $605 million, which declined from $828 million in the prior-year quarter.

APO’s Quarterly Revenues & Expenses Rise

Total revenues were $1.1 billion, up 17.5% year over year. Also, it topped the Zacks Consensus Estimate by 7.9%.

Total expenses for combined segments rose 7.4% year over year to $189 million in the reported quarter.

Apollo Global’s AUM Balance Rises

Fee-earnings AUM increased 22.2% on a year-over-year basis to $638 billion. The rise was driven by strong management fee growth and record capital solutions fees.

As of June 30, 2025, total AUM was $840 billion, up 36.1% on a year-over-year basis. Total AUM benefited from $98 billion of inflows from Asset Management and $81 billion of gross inflows from Retirement Services, partially offset by $60 billion of outflows, driven by normal course activity at Athene and $20 billion of realization activity.

APO’s Capital & Liquidity Position Weak

As of June 30, 2025, Apollo Global had $2.4 billion of cash and cash equivalents and $4.3 billion of debt.

Apollo Global’s Capital Distribution Update

The company declared a quarterly cash distribution of 51 cents per share, along with the earnings release. This dividend will be paid out on Aug. 29, 2025, to shareholders of record as of Aug. 18.

Our Viewpoint on APO

Apollo Global’s decent organic growth and increasing AUM balance look encouraging. The company’s second-quarter results reflect broad-based momentum across the platform. Its quarterly origination volume was robust, driven by a diverse array of investing activity across debt origination platforms, core credit, high-grade capital solutions, and equity origination. In February, APO announced a deal to acquire Bridge Investment Group, which is expected to close in the third quarter of 2025. This impending acquisition aligns with the company's objective to expand its real estate expertise and strengthen its wealth business, supporting its financials.

Apollo Global Management Inc. Price, Consensus and EPS Surprise

Apollo Global Management Inc. price-consensus-eps-surprise-chart | Apollo Global Management Inc. Quote

Currently, Apollo Global carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of APO’s Peers

Franklin Resources Inc. BEN reported third-quarter fiscal 2025 (ended June 30) adjusted earnings of 49 cents per share, which surpassed the Zacks Consensus Estimate of 48 cents per share. However, the bottom line compared unfavorably with 60 cents reported in the year-ago quarter.

BEN’s results benefited from improved AUM balance. However, lower revenues and higher expenses acted as a spoilsport.

T. Rowe Price Group, Inc.’s TROW second-quarter 2025 adjusted earnings per share of $2.24 beat the Zacks Consensus Estimate of $2.15. However, the bottom line decreased roughly 1% year over year.’

TROW's results benefited from higher AUM. On the other hand, lower investment advisory fees, higher expenses and negative capital allocation-based income were headwinds. 

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

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