GET DAILY SIGNALSKKR Reports Strong Q3 Results with +26% EPS Growth to $1.78
Key Takeaways
- KKR reported adjusted net income per share of $1.78 for the third quarter of 2026, beating consensus estimates of roughly $1.58–$1.59 and rising 26% year over year.
- The firm posted record results across its three headline metrics for a second consecutive quarter, led by fee-related earnings (FRE) of $1.32 billion, up 27% from a year earlier.
- Assets under management (AUM) climbed 11% year over year to $804.4 billion, while fee-paying AUM reached $647.9 billion.
- Management fees hit $1.2 billion in the quarter—a level equal to KKR's entire annual management-fee revenue in 2019.
- KKR holds a record $146 billion of dry powder (unspent capital available to deploy) and expects to return more than $40 billion to clients in 2026.
- The company's announced sale of USI Insurance Services is expected to close in the fourth quarter and contribute roughly $2 billion of adjusted net income.
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Why These Results Matter in the Current Environment
KKR's third-quarter report arrives at an interesting time for the alternative-asset sector. Higher interest rates and mixed market conditions have slowed deal flow in private equity and credit, which has weighed on transaction-based revenue for many peers. In that setting, KKR's numbers give a sense of whether its growing base of recurring fee income can help balance out more variable performance fees. The quarter also highlights how the firm's diversified approach across private equity, infrastructure, credit, wealth products, and insurance via Global Atlantic is holding up. With asset sales slower across the industry, the pace of fundraising, capital deployment, and returns to clients offers useful insight into KKR's ability to grow earnings through a choppier cycle.
Breaking Down the Reported Numbers
For the third quarter ended September 30, 2026, KKR posted adjusted net income per share of $1.78, which topped consensus estimates near $1.58–$1.59 and rose 26% from $1.41 a year earlier. Total operating earnings increased 24.6% to $1.74 billion, and fee-related earnings grew 27% to $1.32 billion, or $1.42 per share. Management fees rose 12.9% to $1.2 billion, helped by fee-related performance revenues of $326 million. On a GAAP basis, net income attributable to common stockholders came in at $1.12 billion, or $1.19 per diluted share.
AUM increased 11% to $804.4 billion, and fee-paying AUM rose 10.7% to $647.9 billion. Insurance operating earnings at Global Atlantic were $230 million, while strategic holdings added $192 million. The $804.4 billion AUM figure landed a bit below some analyst projections near $816 billion, which added a layer of nuance to an otherwise solid quarter. I also checked this using Tickeron’s AI Screener to see how KKR compares with peers on key metrics.
How the Market Reacted
KKR shares moved up modestly in pre-market trading after the release, gaining about 2% as investors balanced the earnings beat against broader questions around the private-markets space. The stock stayed well below its 52-week high of $144.84, reflecting ongoing caution tied to rate-sensitive deal activity and valuations. While the adjusted EPS beat stood out, some analysts pointed out that AUM and certain fee-related items came in slightly below expectations. The second straight quarter of record results on core metrics pointed to operational strength, yet the measured response showed continued attention on the sustainability of transaction-driven revenue and the interest-rate path into 2027.
What to Watch Going Forward
KKR heads into the end of 2026 with a few notable items on the horizon. The pending sale of USI Insurance Services, expected to close in the fourth quarter, should add about $2 billion of adjusted net income and roughly $3.3 billion in after-tax proceeds. Management has indicated confidence in delivering a third consecutive quarter of record adjusted net income per share to wrap up the year.
Fundraising momentum will also be worth tracking. KKR raised $25 billion in new capital during the third quarter and $116 billion over the trailing 12 months, with notable strength in credit and infrastructure. The Global Infrastructure fund closed at $19.2 billion, and the K-Series private wealth platform reached $45 billion in AUM, up 55% year over year.
Key areas to monitor include the pace of monetization as KKR targets more than $40 billion returned to clients in 2026, the path of management fees, and the timing of fee generation from $75 billion of uncalled commitments. A planned shift to a one-share, one-vote governance structure is expected by the next earnings call. Capital allocation choices around buybacks, strategic holdings, and insurance will stay central to the longer-term earnings picture. From what I see, these factors will help shape how the story evolves.
Using AI Tools for Ongoing Research
I often rely on Tickeron's AI-powered tools when reviewing earnings and market setups. The AI Screener helps me quickly filter stocks and ETFs by technical patterns, fundamentals, and performance metrics, which can surface relevant ideas around companies like KKR. It has become a practical part of my routine for comparing opportunities across the sector without spending hours on manual checks.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
KKR in upward trend: price rose above 50-day moving average on November 04, 2026
KKR moved above its 50-day moving average on November 04, 2026 date and that indicates a change from a downward trend to an upward trend. In 27 of 34 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 79%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 21, 2026. You may want to consider a long position or call options on KKR as a result. In 68 of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 77%.
The Moving Average Convergence Divergence (MACD) for KKR just turned positive on October 20, 2026. Looking at past instances where KKR's MACD turned positive, the stock continued to rise in 30 of 42 cases over the following month. The odds of a continued upward trend are 71%.
The 10-day moving average for KKR crossed bullishly above the 50-day moving average on November 09, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 77%.
Following a +4.24% 3-day Advance, the price is estimated to grow further. Considering data from situations where KKR advanced for three days, in 232 of 326 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
Bearish Trend Analysis
The 10-day RSI Indicator for KKR moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In 18 of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at 51%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 36 of 54 cases where KKR's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 67%.
The 50-day moving average for KKR moved below the 200-day moving average on October 16, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KKR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 69%.
KKR broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for KKR entered a downward trend on October 23, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating steady price growth. KKR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 67 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 70 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KKR’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron Valuation Rating of 84 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.038) is normal, around the industry mean (2.412). P/E Ratio (28.800) is within average values for comparable stocks, (-2.386). Projected Growth (PEG Ratio) (0.398) is also within normal values, averaging (1.319). Dividend Yield (0.008) settles around the average of (0.270) among similar stocks. P/S Ratio (4.382) is also within normal values, averaging (15.694).
The Tickeron PE Growth Rating for this company is 90 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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