TPG (NASDAQ:TPG) Surprises With Strong Q3

Global alternative asset manager TPG (NASDAQ:TPG) reported revenue ahead of Wall Streets expectations in Q3 CY2025, with sales up 168% year on year to $1.22 billion. Its GAAP profit of $0.20 per share increased from $0.04 in the same quarter last year.

Is now the time to buy TPG? Find out by accessing our full research report, it’s free for active Edge members.

Company Overview

Founded in 1992 and managing over 300 active portfolio companies across more than 30 countries, TPG (NASDAQ:TPG) is a global alternative asset management firm that invests across private equity, credit, real estate, and public market strategies.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, TPG’s revenue grew at an exceptional 22.5% compounded annual growth rate over the last five years. Its growth surpassed the average financials company and shows its offerings resonate with customers, a great starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. TPG’s annualized revenue growth of 29.3% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

This quarter, TPG reported magnificent year-on-year revenue growth of 168%, and its $1.22 billion of revenue beat Wall Street’s estimates by 145%.

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Assets Under Management (AUM)

Assets Under Management (AUM) represents the total value of investments that a financial institution manages for its clients. These assets generate steady income through management fees, creating predictable revenue streams that remain stable so long as clients remain invested with the firm.

TPG’s AUM has grown at an annual rate of 38.2% over the last two years, much better than the broader financials industry and faster than its total revenue.

TPG’s AUM punched in at $286.4 billion this quarter, beating analysts’ expectations by 2.4%. This print was 19.8% higher than the same quarter last year.

Key Takeaways from TPG’s Q3 Results

We were impressed by how significantly TPG blew past analysts’ revenue expectations this quarter. We were also glad its AUM outperformed Wall Street’s estimates. On the other hand, fee-related earnings just met expectations. Zooming out, we think this quarter was solid. The market seemed to be hoping for more, and the stock traded down 1.1% to $54.25 immediately following the results.

So should you invest in TPG right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.