KKR Q3 Earnings Top Estimates as AUM Rises Y/Y, Stock Gains

KKR & Co. Inc.’s KKR third-quarter 2025 adjusted net income per share of $1.41 topped the Zacks Consensus Estimate of $1.29. The bottom line increased from $1.38 in the prior-year quarter.

KKR shares rallied nearly 2.2% in the pre-market trading on the 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 $859.9 million compared with the net income of $600.6 million in the year-ago quarter.

KKR’s Segmental Revenues & Expenses Increase

Total segment revenues amounted to $1.46 billion, jumping 3.4% 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 6.9%.

Total segment expenses increased 3.9% to $431.9 million.

As of Sept. 30, 2025, total AUM grew 16% year over year to $723 billion. Fee-paying AUM summed $585 billion, which increased 16% from the year-ago quarter.

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

Total operating earnings grew 12% year over year to $1.4 billion. 

The company posted fee-related earnings of $1 billion, up 3% 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.

Performances of Other Asset Managers

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.

Lazard Inc.’s LAZ third-quarter 2025 adjusted earnings per share of 56 cents beat the Zacks Consensus Estimate of 41 cents. This compared favorably with earnings of 38 cents in the year-ago quarter.

Lazard’s results were positively impacted by increases in revenues in the financial advisory and asset management and corporate sectors. A rise in the assets under management balances was another positive. However, 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