Apollo Q2 2026: $1.3B Profit, AUM Hits $1.05T, Tax Fight Looms
APO sits 31% above its 52-week low of $99.56.
Summary
Apollo Global Management reported Q2 2026 net income of $1.336 billion, a sharp rebound from a Q1 loss, as assets under management surpassed $1 trillion. The results highlight strong fee growth and spread earnings, but are clouded by an IRS tax dispute and a large pending insider stock sale.
Key Events · Earnings and Guidance · APO
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Q2 Profit Rebound
Net income attributable to common stockholders was $1.336 billion ($2.15 diluted EPS), compared to a $594 million loss in Q1 2026, driven by higher investment gains and fee growth.
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AUM Surpasses $1 Trillion
Total assets under management reached $1.047 trillion, up 11.6% year-to-date, primarily from Athora's acquisition of PIC and strong organic inflows across credit and equity strategies.
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Fee Related Earnings Surge
FRE rose 25.2% year-over-year to $785 million, fueled by a 22.7% increase in management fees and a 28.2% increase in capital solutions fees, partially offset by higher compensation costs.
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IRS Tax Dispute
The IRS issued a draft Notice of Proposed Adjustment on April 13, 2026, proposing a significant increase to taxable income for 2019-2021. Apollo disputes the position and intends to contest it vigorously.
Analysis · APO · Finance
A sharp return to profitability defines Apollo's second quarter, with net income reaching $1.336 billion after a Q1 loss driven by a non-cash tax charge. The core business is firing: Fee Related Earnings jumped 25% on higher management fees, and assets under management crossed $1 trillion for the first time, fueled by the Athora/PIC deal and strong inflows. The retirement services arm delivered steady spread earnings despite higher funding costs. Offsetting the good news, the IRS is proposing a significant tax hike for prior years, and a $1.7 billion deferred tax asset write-off earlier this year still weighs on the six-month bottom line. The recently announced easyJet buyout and a large insider stock sale add strategic and governance overhangs.
At the time of this filing, APO was trading at $130.00 on NYSE in the Finance sector, with a market capitalization of approximately $75.3B. The 52-week trading range was $99.56 to $153.29. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.