KKR & Co. Inc. KKR is slated to report third-quarter 2025 results on Nov. 7, before the opening bell. Its earnings and revenues in the quarter are expected to have decreased on a year-over-year basis.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate. Its 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.
The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in each of the trailing four quarters, with the average beat being 5.58%.
Q3 Earnings & Sales Estimates for KKR
The Zacks Consensus Estimate for earnings is pegged at $1.29 per share, which has been revised downward over the past month. The figure indicates a decrease of 6.5% from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $1.37 billion, indicating a 3.3% decline year over year.
Key Factors & Estimates for KKR in Q3
KKR has been witnessing increases in fee-earning AUM and total AUM, driven by its diversified product and revenue mix, superior position in the alternative investments space and net inflows. Given the increased client activity in the third quarter, KKR is expected to have recorded a rise in AUM balance as inflows strengthened.
The Zacks Consensus Estimate for AUM is pegged at $707.2 billion, suggesting a rise of 13.2% from the prior-year quarter. Likewise, the consensus estimate for fee-paying AUM is pegged at $574.6 billion, which indicates an increase of 13.6%.
The Zacks Consensus Estimate for management fees (segment revenues) for the to-be-reported quarter is pegged at $1.04 billion, suggesting growth of 16.8% from the prior-year quarter. The consensus estimate for fee-related performance revenues (segment revenues) of $50.2 million implies a decrease of 11.4%.
Additionally, KKR expects profits from deal exits to have been solid in the to-be-reported quarter. The company’s preliminary estimate, between July 1 and Sept. 24, 2025, for total realized performance income and net realized investment income is more than $925 million, implying a significant increase from $450 million in the prior-year quarter.
Talking about expenses, KKR is likely to have experienced elevated expenses in the to-be-reported quarter due to higher employee compensation and benefits. The company anticipates the expense to be elevated due to higher placement fees and growing fundraising activities.
What Our Model Predicts for KKR
According to our quantitative model, the chances of KKR beating the Zacks Consensus Estimate for earnings this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for KKR is -1.35%.
Zacks Rank: The company currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of KKR's Peers
T. Rowe Price Group, Inc.’s TROW third-quarter 2025 adjusted earnings per share of $2.81 beat the Zacks Consensus Estimate of $2.55. Moreover, the bottom line increased 9.3% year over year.
TROW's results benefited from a rise in investment advisory fees and capital allocation-based income. Higher assets under management were another positive. However, higher expenses acted as a spoilsport.
Invesco’s IVZ third-quarter 2025 adjusted earnings of 61 cents per share surpassed the Zacks Consensus Estimate of 45 cents. The bottom line increased 38.6% from the prior-year quarter.
An increase has primarily aided IVZ’s results in adjusted revenues. Moreover, growth in the AUM balance to record levels supported the results to an extent. However, an increase in adjusted operating expenses was a headwind.
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
T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report Invesco Ltd. (IVZ): Free Stock Analysis Report KKR & Co. Inc. (KKR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
