second quarter 2026
Filed Jul 30, 2026KKR Reports Second Quarter 2026 Financial Results
KKR reported record quarterly Fee Related Earnings, Total Operating Earnings and Adjusted Net Income per share, with FRE up 37% year-over-year, TOE up 29% year-over-year, ANI up 40% year-over-year, AUM up 16% year-over-year and FPAUM up 15% year-over-year.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Asset Management and Strategic Holdings RevenuesGAAP | $ 2,202,823 (in thousands) | – | – |
| Insurance RevenuesGAAP | $ 3,523,068 (in thousands) | – | – |
| Total RevenuesGAAP | $ 5,725,891 (in thousands) | – | – |
| Asset Management and Strategic Holdings ExpensesGAAP | $ 1,679,262 (in thousands) | – | – |
| Insurance ExpensesGAAP | $ 3,726,997 (in thousands) | – | – |
| Total ExpensesGAAP | $ 5,406,259 (in thousands) | – | – |
| Total Investment Income (Loss) - Asset Management and Strategic HoldingsGAAP | $ 661,352 (in thousands) | – | – |
| Income Tax Expense (Benefit)GAAP | 246,105 (in thousands) | – | – |
| Redeemable Noncontrolling InterestsGAAP | 54,252 (in thousands) | – | – |
| Noncontrolling InterestsGAAP | (19,855) (in thousands) | – | – |
| Preferred Stock DividendsGAAP | 40,429 (in thousands) | – | – |
| Net Income (Loss) - KKR Common StockholdersGAAP | $ 660,053 (in thousands) | – | – |
| Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock - BasicGAAP | $ 0.74 | – | – |
| Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock - DilutedGAAP | $ 0.70 | – | – |
| Weighted Average Shares of Common Stock Outstanding - BasicGAAP | 895,585,447 | – | – |
| Weighted Average Shares of Common Stock Outstanding - DilutedGAAP | 945,581,938 | – | – |
| Asset Management and Strategic Holdings Revenues YTDGAAP | $ 4,231,518 (in thousands) | – | – |
| Insurance Revenues YTDGAAP | $ 5,812,356 (in thousands) | – | – |
| Total Revenues YTDGAAP | $ 10,043,874 (in thousands) | – | – |
| Total Expenses YTDGAAP | $ 9,276,394 (in thousands) | – | – |
| Total Investment Income (Loss) - Asset Management and Strategic Holdings YTDGAAP | $ 676,394 (in thousands) | – | – |
| Net Income (Loss) - KKR Common Stockholders YTDGAAP | $ 1,024,852 (in thousands) | – | – |
| Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock - Basic YTDGAAP | $ 1.15 | – | – |
| Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock - Diluted YTDGAAP | $ 1.08 | – | – |
| Fee Related Earningsnon-GAAP | $1.2 billion ($1.32/adj. share) | – | up 37% year-over-year |
| Fee Related Earnings LTMnon-GAAP | $4.2 billion ($4.68/adj. share) | – | up 19% year-over-year |
| Total Operating Earningsnon-GAAP | $1.5 billion ($1.68/adj. share) | – | up 29% year-over-year |
| Total Operating Earnings LTMnon-GAAP | $5.5 billion ($6.13/adj. share) | – | up 19% year-over-year |
| Adjusted Net Incomenon-GAAP | $1.5 billion ($1.63/adj. share) | – | up 40% year-over-year |
| Adjusted Net Income LTMnon-GAAP | $5.0 billion ($5.55/adj. share) | – | up 13% year-over-year |
| Assets Under Managementother | $796 billion | – | up 16% year-over-year |
| Fee Paying Assets Under Managementother | $638 billion | – | up 15% year-over-year |
| New Capital Raisedother | $34 billion | – | – |
| New Capital Raised LTMother | $133 billion | – | – |
| Capital Investedother | $24 billion | – | – |
| Capital Invested LTMother | $104 billion | – | – |
| Management Feesnon-GAAP | $ 1,249,964 (in thousands) | – | – |
| Transaction and Monitoring Fees, Netnon-GAAP | 221,269 (in thousands) | – | – |
| Fee Related Performance Revenuesnon-GAAP | 254,699 (in thousands) | – | – |
| Fee Related Compensationnon-GAAP | (302,038) (in thousands) | – | – |
| Other Operating Expensesnon-GAAP | (209,746) (in thousands) | – | – |
| Fee Related Earningsnon-GAAP | $ 1,214,148 (in thousands) | – | – |
| Insurance Operating Earningsnon-GAAP | $ 288,220 (in thousands) | – | – |
| Strategic Holdings Operating Earningsnon-GAAP | $ 37,036 (in thousands) | – | – |
| Total Operating Earningsnon-GAAP | $ 1,539,404 (in thousands) | – | – |
| Net Realized Performance Incomenon-GAAP | 211,884 (in thousands) | – | – |
| Net Realized Investment Incomenon-GAAP | 191,325 (in thousands) | – | – |
| Total Investing Earningsnon-GAAP | $ 403,209 (in thousands) | – | – |
| Total Segment Earningsnon-GAAP | $ 1,942,613 (in thousands) | – | – |
| Interest Expense, Net and Othernon-GAAP | (135,544) (in thousands) | – | – |
| Income Taxes on Adjusted Earningsnon-GAAP | (314,375) (in thousands) | – | – |
| Adjusted Net Incomenon-GAAP | $ 1,492,694 (in thousands) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Asset Management and Strategic HoldingsStrategic acquisition of Arctos closed on May 4, 2026. Arctos is reported within the Private Equity business line. | $ 2,202,823 (in thousands) | – | – |
| InsuranceNot separately stated. | $ 3,523,068 (in thousands) | – | – |
Capital returns
- Regular dividend of $0.195 per share of common stock was declared for the quarter.
What drove it
- KKR described its continued return of capital to clients as contributing to its strongest monetization quarter ever and record new capital inflows over the past 12 months.
- New Capital Raised was $34 billion in the quarter and $133 billion in the LTM.
- Capital Invested was $24 billion in the quarter and $104 billion in the LTM.
- Fee Related Performance Revenues were 254,699 (in thousands), compared with 53,737 (in thousands) in 2Q'25.
Concerns
- Total Investment Income (Loss) - Asset Management and Strategic Holdings was $ 661,352 (in thousands), compared with $ 1,186,369 (in thousands) in 2Q'25.
- Insurance Expenses were $ 3,726,997 (in thousands), compared with $ 3,310,210 (in thousands) in 2Q'25.
- Interest Expense, Net and Other was (135,544) (in thousands), compared with (93,607) (in thousands) in 2Q'25.
What to watch
- Conversion of $796 billion of AUM into fee-paying assets, which were $638 billion at quarter-end.
- The contribution from Arctos, which closed on May 4, 2026 and had AUM of $20 billion as of June 30, 2026.
- Future monetization activity following KKR's strongest monetization quarter ever.
- Capital formation following $34 billion of quarterly New Capital Raised.
Balance sheet and cash flow
- Arctos AUM as of June 30, 2026 was $20 billion.
Analysis
KKR reported a strong second quarter, led by record per-share Fee Related Earnings, Total Operating Earnings and Adjusted Net Income on both a quarterly and trailing twelve-month basis. Quarterly FRE was $1.2 billion ($1.32/adj. share), up 37% year-over-year, while TOE was $1.5 billion ($1.68/adj. share), up 29% year-over-year. ANI was $1.5 billion ($1.63/adj. share), up 40% year-over-year.
GAAP Total Revenues were $ 5,725,891 (in thousands), with Asset Management and Strategic Holdings Revenues of $ 2,202,823 (in thousands) and Insurance Revenues of $ 3,523,068 (in thousands). GAAP Net Income (Loss) - KKR Common Stockholders was $ 660,053 (in thousands), and diluted GAAP earnings per common share were $ 0.70. Asset Management and Strategic Holdings Total Investment Income (Loss) was $ 661,352 (in thousands), compared with $ 1,186,369 (in thousands) in 2Q'25, which merits attention alongside the higher operating earnings measures.
Capital formation and deployment were material features of the period. AUM was $796 billion, up 16% year-over-year, and FPAUM was $638 billion, up 15% year-over-year. KKR raised $34 billion of New Capital and invested $24 billion during the quarter. The company also closed its Arctos acquisition on May 4, 2026; Arctos had AUM of $20 billion as of June 30, 2026 and is reported within Private Equity.
The non-GAAP earnings bridge showed Management Fees of $ 1,249,964 (in thousands), Fee Related Performance Revenues of 254,699 (in thousands), and Total Investing Earnings of $ 403,209 (in thousands). Insurance Operating Earnings were $ 288,220 (in thousands), while Insurance Expenses were $ 3,726,997 (in thousands). KKR declared a regular common-stock dividend of $0.195 per share for the quarter. The supplied filing text contains no forward guidance or outlook metrics.
Management, verbatim
Our second quarter results reflect the strength and breadth of KKR's global franchise. We reported record Fee Related Earnings, Total Operating Earnings and Adjusted Net Income per share on both a quarterly and trailing twelve-month basis. Our continued return of capital to clients led to our strongest monetization quarter ever and helped drive record new capital inflows over the past 12 months. As we look ahead, we remain confident in our long-term positioning and our ability to deliver differentiated outcomes for our clients and shareholders.
Joseph Y. Bae and Scott C. Nuttall, Co-Chief Executive Officers
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross margin guidance
- Forward operating expense guidance
- Forward tax rate guidance
- Prior outlook for comparison
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Share repurchases
- Detailed GAAP gross profit or gross margin
- Detailed GAAP operating income or operating margin
- Full adjusted per-share reconciliation, as the supplied filing text ends after "Adjusted P"
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.