KKR Q2 Earnings Surpass Estimates as AUM Rises Y/Y, Stock Gains

KKR & Co. Inc.'s
KKR

second-quarter 2025 adjusted net income per share of $1.18
topped the Zacks Consensus Estimate of $1.17. The bottom line
increased from $1.09 in the prior-year quarter.

KKR shares rallied nearly 1% in the pre-market trading on
better-than-expected results.

Results have primarily reflected impressive growth in assets
under management (AUM) and transaction fees for the capital markets
business. However, an increase in expenses acted as a headwind.

Net income attributable to the company (GAAP basis) was $472.4
million compared with the net income of $667.9 million in the
year-ago quarter.

KKR's Segmental Revenues & Expenses Increase

Total segment revenues amounted to $1.28 billion, jumping 15.9%
on a year-over-year basis. The rise was driven by higher management
fees, fee-related performance revenues, and transaction and
monitoring fees. The top line beat the Zacks Consensus Estimate by
0.4%.

Total segment expenses increased 12.8% to $396.9 million.

As of June 30, 2025, total AUM grew 14% year over year to $686
billion. Further, fee-paying AUM summed $556 billion, which
increased 14.1% from the year-ago quarter.

KKR's Total Operating Earnings & Fee-Related Earnings
Rise

Total operating earnings grew 13.8% year over year to $1.19
billion.

The company posted fee-related earnings of $886.8 million, up
17.4% year over year.

Our Viewpoint on KKR

The company will continue utilizing lucrative investment
opportunities on the back of its efficient fundraising capability
in the quarters ahead. Significant growth in fee-related earnings
and total operating earnings is aiding the company's financials.
However, due to the company's continuous expansion of its global
footprint, expenses are likely to remain elevated. The current
tough operating environment is another concern.

KKR & Co. Inc. Price, Consensus and EPS
Surprise

KKR & Co. Inc. price-consensus-eps-surprise-chart |

KKR & Co. Inc. Quote

Currently, KKR carries a Zacks Rank #3 (Hold). You can see

the complete list of today's Zacks #1 Rank (Strong Buy)
stocks here.

Performance of Other Asset Managers

Blackstone's
BX
second-quarter 2025 distributable earnings of $1.21 per share
surpassed the Zacks Consensus Estimate of $1.10. The figure
reflects a rise of 26% from the prior-year quarter.

BX's results benefited from higher segment revenues and a rise
in the AUM balance. However, an increase in GAAP expenses was a
headwind.

Lazard Inc.'s
LAZ
second-quarter 2025 adjusted earnings per share of 52 cents beat
the Zacks Consensus Estimate of 38 cents. This compared favorably
with earnings of 49 cents per share in the year-ago quarter.

LAZ's results were positively impacted by increases in revenues
in the financial advisory and asset management sectors. A rise in
assets under management balances was another positive. However, a
decrease in revenues in the corporate segment and elevated
operating expenses acted as a spoilsport.

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This article originally published on Zacks Investment Research
(zacks.com).

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