| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 99 | 0.5x | 17.4x | Top tier | |
Growth | 58 | 12.5% | 7.1% | Around median | |
Quality | 93 | — | — | Top tier | |
Safety | 58 | — | — | Around median | |
Capital Return | 61 | 0.16% | 0.18% | Around median | |
Momentum | 40 | -11.8% | 1.3% | Bottom tier | |
Sentiment | 1 | 1 | 3 | Bottom tier |
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Affiliated Managers Group operates through a partnership model with approximately 40 independent asset management firms, allocating its business across private markets, liquid alternative strategies, and differentiated long-term traditional strategies. Its model is based on owning stakes in affiliates and benefiting from management and performance fees while preserving those firms' independence, then redirecting cash flows toward new affiliate investments and share repurchases.
In fiscal 2026 Q2, for the period ended 2026-06-30, revenue increased 32.9% year over year to $655.3 million from $493.2 million, while net income reached $185.9 million and diluted earnings per share were $7.05. Gross margin reached 97.1% versus 46.5% a year earlier, operating margin expanded to 31.9% from 25.3%, and operating cash flow reached $251.9 million.
Assets under management reached $942 billion in fiscal 2026 Q2, following total net inflows of $13 billion; alternative strategies attracted $29 billion, including $8 billion in private markets and $21 billion in liquid alternatives. Alternatives now account for more than 60% of earnings, compared with a 35% contribution from the long-term traditional business, illustrating the shift in the earnings mix toward higher-fee, higher-margin strategies.
Q2 FY2026
Automated analysis for informational purposes only — not investment advice.
When: 2026-11-09
Revenue exceeds $655.3 million
Operating margin reaches 31.9%
Adjusted earnings before interest, taxes, depreciation, and amortization reach $315 million
Economic earnings per share reach $8.43
The most prominent driver is the shift in AMG's mix toward higher-fee, higher-margin alternative strategies, which accounted for more than 60% of earnings in fiscal 2026 Q2, for the period ended 2026-06-30. Alternatives attracted $29 billion in net inflows during that quarter and approximately $100 billion over the twelve months ended in that quarter. Demand was concentrated in secondary, infrastructure, absolute return, and tax-aware investment strategies. This was reflected in year-over-year revenue growth of 32.9% and an expansion in operating margin to 31.9%.
Management said on the 2026-07-30 call that tax-aware strategies account for slightly more than 10% of AMG's earnings. Of the liquid alternative inflows in fiscal 2026 Q2, $16 billion came from wealth management clients into these strategies. AMG is directly connected to this trend through AQR, which also serves institutional demand for liquid alternatives and absolute return strategies. Management reported that the organic growth rate of liquid alternatives, excluding tax-aware strategies, exceeded 15% over the twelve months ended in that quarter.
No; alternative strategies recorded net inflows of $29 billion in fiscal 2026 Q2, for the period ended 2026-06-30, split between $8 billion for private markets and $21 billion for liquid alternatives. In contrast, $14 billion flowed out of differentiated long-term traditional equity strategies. The multi-asset and fixed-income category also recorded outflows of $2 billion, which management attributed to seasonality in money market funds and short-term fixed income. Therefore, the quality of growth depends on alternatives continuing to outpace contraction in traditional categories.
Management expects adjusted earnings before interest, taxes, depreciation, and amortization of between $315 million and $325 million in fiscal 2026 Q3. The outlook includes recurring fee-related earnings of $315 million and net performance fees of up to $10 million, with no material catch-up fees from private markets. It also expects economic earnings per share of between $8.43 and $8.71, based on a weighted average of 26.3 million shares. The guidance was based on current assets under management levels and a market mix that was down 2% through 2026-07-29.
AMG spent approximately $189 million on share repurchases in fiscal 2026 Q2, bringing spending to approximately $375 million in fiscal 2026 H1. It also completed investments in BBH Credit Partners and HighBrook Investors, as well as an additional minority stake in Garda Capital Partners, bringing total capital allocated to growth investments and capital returns to approximately $800 million during the first half. Management is targeting approximately $600 million in share repurchases in fiscal 2026, subject to market conditions and capital allocation activity. The diluted share count in Q2 declined 14.3% year over year to 26.9 million shares.
