Alternative asset manager Ares Management (NYSE: ARES) announced better-than-expected revenue in Q2 CY2026, with sales at $1.43 billion. Its non-GAAP profit of $1.29 per share was slightly above analysts’ consensus estimates.

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Company Overview

With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE: ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.

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, Ares’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.

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. Ares’s annualized revenue growth of 26% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Ares reported wonderful year-on-year revenue growth of 39.9%, and its $1.43 billion of revenue exceeded Wall Street’s estimates by 11.7%.

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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.

Ares’s AUM has grown at an annual rate of 25% over the last five years, much better than the broader financials industry and faster than its total revenue. When analyzing Ares’s AUM over the last two years, we can see that growth decelerated to 22.5% annually. Fundraising or short-term investment performance was a net detractor to the company over this shorter period since assets grew slower than total revenue. That said, assets aren’t the be-all and end-all due to their unpredictable and cyclical nature.

Ares’s AUM punched in at $671.3 billion this quarter, beating analysts’ expectations by 1.1%. This print was 17.3% higher than the same quarter last year.

Key Takeaways from Ares’s Q2 Results

We were impressed that Ares beat analysts’ revenue expectations this quarter. We were also glad its non-GAAP EPS slightly outperformed Wall Street’s estimates. Zooming out, we think this quarter had some positives. The stock traded down 1.8% to $121.89 immediately after reporting.

Is Ares an attractive investment opportunity right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).