Private equity firm Carlyle Group (NASDAQ: CG) fell short of the market’s revenue expectations in Q1 CY2026, with sales falling 75.7% year on year to $254 million. Its GAAP loss of $0.37 per share decreased from $1.14 in the same quarter last year.

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Company Overview

Founded in 1987 with just $5 million in capital and named after the iconic New York hotel where the founders first met, The Carlyle Group (NASDAQ: CG) is a global investment firm that raises, manages, and deploys capital across private equity, credit, and investment solutions.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Carlyle grew its revenue at a mediocre 6% compounded annual growth rate. This was below our standard for the financials sector and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Carlyle’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 8% annually. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Carlyle missed Wall Street’s estimates and reported a rather uninspiring 75.7% year-on-year revenue decline, generating $254 million of revenue.

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Assets Under Management (AUM)

Assets Under Management (AUM) encompasses all client funds under a firm's investment management umbrella. The recurring fee structure on these assets provides consistent revenue generation, offering financial stability even during periods of poor investment returns, though sustained underperformance can impact future asset flows.

Carlyle’s AUM has grown at an annual rate of 14.6% over the last five years, better than the broader financials industry and faster than its total revenue. When analyzing Carlyle’s AUM over the last two years, we can see that growth decelerated to 8.1% annually. Fundraising or short-term investment performance were net contributors for the company over this shorter period since assets grew faster than total revenue. But again, we put less weight on asset growth given how lumpy and cyclical it can be.

Carlyle’s AUM punched in at $475 billion this quarter, falling 0.8% short of analysts’ expectations. This print was 4.9% higher than the same quarter last year.

Key Takeaways from Carlyle’s Q1 Results

We struggled to find many positives in these results. Its revenue missed and its AUM fell slightly short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 5.2% to $48.15 immediately after reporting.

Carlyle’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).