KKR Posts Record $1.78 a Share Profit as Assets Top $804 Billion
KKR reported record third-quarter profit of $1.78 a share as assets under management passed $804 billion, even as its shares stayed down 24% in 2026.
Image: Wikimedia Commons / Ken Lund
NEW YORK — KKR & Co. reported record third-quarter profit on Monday, November 9, as fee income from $804 billion of assets under management hit an all-time high, beating Wall Street expectations by about 20 cents a share.
The New York investment firm said adjusted net income rose 29 percent to $1.65 billion, or $1.78 per adjusted share, according to its earnings release filed with the U.S. Securities and Exchange Commission. Analysts had expected about $1.58 a share.
Key Takeaways
- Adjusted net income rose 29 percent to $1.65 billion, or $1.78 a share, above the roughly $1.58 consensus.
- Fee-related earnings hit a record $1.32 billion, up 27 percent.
- Assets under management climbed 11 percent to $804 billion, a first above $800 billion.
- KKR expects to return over $40 billion to clients in 2026, a record.
Fee-related earnings, the recurring stream from managing client money, rose 27 percent to a record $1.32 billion. Management fees totalled $1.20 billion, up about 13 percent, while capital markets fees reached $290 million.
KKR raised $25 billion of fresh capital in the quarter and $116 billion over the past year, lifting assets under management 11 percent to $804 billion, even as banks grow wary of AI debt. Fee-paying assets also rose 11 percent, to $648 billion, though the total came in below the roughly $815 billion analysts had expected.
The headline profit masked a split. Total revenue under standard accounting rules fell to $4.56 billion from $5.53 billion a year earlier, largely because insurance revenue dropped to $2.8 billion from $3.78 billion. Net income attributable to common stockholders still rose to $1.12 billion, or $1.19 a share, from $859.9 million.
Insurance operating earnings fell to $230 million from $305 million, including a $26 million charge from the annual actuarial review at Global Atlantic.
Chief executives Joseph Bae and Scott Nuttall said KKR expects to return more than $40 billion to clients in 2026, over 50 percent above its previous record. The $17 billion sale of USI Insurance Services to Aon, agreed on August 31, should close in the fourth quarter and add about $2 billion to adjusted net income.
KKR approved a further $500 million of buyback capacity on November 6, after repurchasing $567 million of stock — 6.2 million shares at an average $92 — between June 30 and November 4. It also declared a 19.5-cent dividend, payable December 3 to holders of record on November 19.
The record quarter did little for the stock. KKR shares closed near $98 on November 9 and remain down roughly 24 percent in 2026, about a third below the near-$145 high set earlier in the year, as investors have marked down alternative asset managers. Wall Street brokerages have called the recent AI sell-off overdone, and the Dow jumped 1,000 points as markets rebounded.
KKR third-quarter 2026 results
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Adjusted net income | $1.65 billion | $1.27 billion | +29% |
| Adjusted EPS | $1.78 | $1.41 | +26% |
| Fee-related earnings | $1.32 billion | $1.03 billion | +27% |
| Operating earnings | $1.74 billion | $1.40 billion | +25% |
| Assets managed | $804 billion | $723 billion | +11% |
| GAAP net income | $1.12 billion | $0.86 billion | +30% |
Frequently Asked Questions
Why did KKR's revenue fall while profit hit a record?
Standard-accounting revenue includes premiums and investment income from KKR's insurance division, which fell sharply. Adjusted net income strips out that volatility and tracks fees from managing assets plus gains from selling investments.
What are fee-related earnings?
Fee-related earnings are the recurring profits from management fees and fee-related performance revenue, minus the costs of running the business. Investors watch the measure because it is steadier than deal-driven gains: it reached a record $1.32 billion in the quarter.
What happens with the USI sale to Aon?
KKR agreed on August 31 to sell USI Insurance Services to Aon for $17 billion. The deal is expected to close in the fourth quarter and add about $2 billion to adjusted net income, or more than $2.00 per adjusted share.
Why are KKR shares down if results were a record?
KKR shares are down roughly 24 percent in 2026 despite the record quarter. Assets under management came in below the roughly $815 billion analysts had expected, and investors have marked down alternative asset managers as higher rates weigh on the group.
KKR reports fourth-quarter results in early 2027. Before then, investors will watch whether the USI sale closes as planned and whether fundraising holds up after a year in which the firm raised $116 billion.
