- Is Acadian Asset Management Inc. (AAMI) Stock Outpacing Its Finance Peers This Year?
May 1, 2026 · zacks.com
Here is how Acadian Asset Management (AAMI) and PROG Holdings (PRG) have performed compared to their sector so far this year.
- Acadian Asset Management Q1 Earnings Call Highlights
May 1, 2026
Acadian Asset Management logo
Key Points
Acadian delivered “exceptional” Q1 results with record AUM of $195.7 billion, U.S. GAAP net income up 21% and ENI (economic net income) rising 85% to $37.6 million, driving sharply higher profitability and EPS gains. The firm recorded a quarterly high of $21.4 billion in net inflows—including an enhanced $16 billion mandate from St. James’s Place—extending nine consecutive quarters of positive flows and leaving a healthy, diversified pipeline. Scale boosted recurring fees and margins (management fees +41% YoY, ENI revenue +40%), with ENI operating margin expanding 978 basis points, while management continues to invest in technology/AI and return capital via buybacks and a $0.10 interim dividend amid a 58% reduction in diluted shares since 2019. Interested in Acadian Asset Management Inc.? Here are five stocks we like better.
Acadian Asset Management (NYSE:AAMI) reported what management called “exceptional” first-quarter 2026 results, driven by record assets under management, strong net inflows, and sharply higher profitability as management fees climbed on a materially larger fee base.
Record AUM and strong profitability
President and CEO Kelly Young said the firm “started 2026 by delivering outstanding results across all metrics,” highlighting higher earnings and a record level of assets under management (AUM). Young said U.S. GAAP net income attributable to controlling interests increased 21% year-over-year, while earnings per share rose 26%, “driven by increased management fees and partially offset by non-cash expenses representing changes in the value of Acadian Asset Management LLC equity and profit interest.”
→ Corning Beats Q1 Estimates but Drops 9% on Guidance Miss
Young also pointed to sharp growth in the company’s ENI (economic net income) metrics, which the company uses to manage the business. She said ENI rose 85% to $37.6 million on revenue growth, and ENI diluted EPS increased 94% to $1.05. Adjusted EBITDA increased 76%, which Young attributed to higher management fees.
Acadian ended the quarter with AUM of $195.7 billion as of March 31, 2026, up 61% from the first quarter of 2025 and a new firm record, according to Young.
Net inflows set a quarterly record
→ Is Oracle Undervalued as Cloud Growth Accelerates?
The company reported positive net flows of $21.4 billion in the quarter, or 12% of beginning AUM, which Young said marked a new quarterly record and extended Acadian’s streak to nine consecutive quarters of positive net flows.
Young said gross inflows included a “significant enhanced mandate from a premier U.K. wealth manager,” identifying in Q&A that the win from St. James’s Place was “about $16 billion.” She said the mandate expanded Acadian’s non-U.S. domiciled client base and increased its presence in the wealth channel.
Story Continues
→ Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall?
Excluding the large mandate, Young said net inflows were “again diverse across products and client types,” with extensions in global equity strategies also contributing. In response to a question from RBC Capital Markets analyst Kenneth Lee about the institutional pipeline, Young said the pipeline looked “very healthy across a number of different strategies and client domiciles” and remained diversified even after significant funding in the quarter. She added that roughly half of the remaining net flows outside the large mandate came from extension strategies, where the firm has seen “a pickup in momentum and interest.”
Fees, margins, and operating leverage
CFO Scott Hynes said total ENI revenue increased 40% year-over-year to $165 million, primarily due to higher recurring management fees and higher performance fees. He reported Q1 2026 management fees of $159 million, up 41% from Q1 2025, reflecting a 57% increase in average AUM driven by “strong positive NCCFs and market appreciation over the last 12 months.”
Hynes emphasized the scale of the business entering 2026, noting that with average AUM of $190 billion in the quarter, Acadian has “materially expanded” its recurring management fee base and strengthened earnings power.
On expenses, Hynes said ENI operating expenses increased 13%, driven by higher sales-based compensation and portfolio-related costs tied to AUM growth, plus general and administrative costs, including continued investments in IT and infrastructure. Despite the higher expense base, the company reported material margin expansion: Hynes said ENI operating margin expanded 978 basis points to 38.1% from 28.3% a year earlier, while the operating expense ratio fell 10 percentage points to 38.4% due to operating leverage.
Hynes also discussed compensation dynamics. Variable compensation increased 35% year-over-year due to higher profit before variable compensation, while the variable compensation ratio decreased to 39.4% from 47.6%. Assuming revenue mix and levels similar to Q1 2026, Hynes said contractual allocations would imply a full-year 2026 variable compensation ratio of approximately 40% to 43%.
Lee asked why average fee rates were relatively stable despite the large enhanced mandate. Hynes said some impact was likely ahead because the St. James’s Place mandate funded later in the quarter, meaning Acadian “hasn’t yet realized the full run rate impact.” He added that fee rates depend on market conditions and client demand, and noted that extension strategies can carry higher fees. “All else equal,” Hynes said the firm could face “a little bit of headwind” in the next quarter as it realizes the full run-rate impact of the continued mix shift to enhanced strategies.
Investment performance and client demand themes
Young said Acadian’s long-term performance remained strong across its largest implementations. As of March 31, 2026, she said global equity, emerging markets equity, non-U.S. equity, small cap equity, and enhanced equity had 100% of assets outperforming benchmarks across three-, five-, and 10-year periods, with “only one exception.” She acknowledged volatility in global equity markets during the quarter amid a complex macro backdrop, adding that Acadian’s systematic approach “stayed the course and generated consistent alpha for our clients.”
Young also reported that Acadian’s revenue-weighted five-year annualized return in excess of benchmark was +4.1% on a consolidated firm-wide basis, while the asset-weighted figure was 3.4%. She said 96% of strategies by revenue weight and 92% by asset weight outperformed their respective benchmarks across three-, five-, and 10-year periods.
In Q&A with Evercore analyst John Dunn, Young said interest in non-U.S. exposure has continued, particularly among U.S.-based clients, citing Acadian’s long track record in international strategies. She said managed volatility strategies were “a slight headwind” in Q1, though outflows have “tapered off quite dramatically versus two to three years ago,” and she suggested the current environment has kept such strategies “at the forefront of clients’ minds.”
Young also said systematic investing remains “clearly a winner” in active equity based on industry and anecdotal client feedback. On the firm’s systematic credit efforts, she said Acadian is excited about what it has built and believes transparency and liquidity in public systematic credit could appeal to investors evaluating private credit allocations.
Balance sheet, buybacks, dividend, and AI investments
Hynes said Acadian ended the quarter with $129 million of cash and $97 million of seed investments. Debt included a $200 million term loan and an $85 million revolving credit facility balance, which Hynes said reflected seasonal first-quarter needs and is expected to be fully paid down by year-end. He reported a gross debt-to-adjusted EBITDA ratio of 1.3x and net debt-to-adjusted EBITDA of 0.7x, noting leverage was slightly higher quarter-over-quarter due to the typical first-quarter revolver draw but improved year-over-year due to lower gross debt and higher adjusted EBITDA.
On capital returns, Hynes highlighted a multi-year reduction in diluted share count, down 58% from 86 million in 4Q 2019 to 35.8 million in Q1 2026. Over that period, he said $1.4 billion in excess capital was returned through buybacks and dividends. During Q1 2026, Acadian repurchased just under 100,000 shares for $4.7 million at a volume-weighted average price of $49.77. The board declared an interim dividend of $0.10 per share payable June 26, 2026, to shareholders of record as of June 12, 2026.
In response to a question from Morgan Stanley analyst Michael Cyprys, Hynes said the company does not manage to a dividend payout ratio and described capital allocation as a dynamic, quarter-by-quarter process. He said the framework prioritizes organic investments—such as seed capital and technology investments—followed by a dividend and then share repurchases as a return of excess capital. He added that while the company recently moved the dividend from $0.01 to $0.10 per share and is “very proud of that,” management would not expect to revisit the dividend “in a meaningful way” every quarter. Hynes said the “direction of travel” for returning excess capital remains more geared toward share repurchases versus a dividend.
Young and Hynes also discussed artificial intelligence. Young said the firm does not view AI as a strategic threat, describing it as an extension of the technological evolution long embedded in systematic investing. She said Acadian is using newer AI tools to enhance research development and operating workflows, while keeping human judgment, discipline, and risk controls central. Young said investments are focused on enterprise productivity tools, AI-assisted coding, and selected AI-enabled services that support research, with guardrails for security. Hynes added that technology and platform investments were contributing to expense growth and that management viewed the firm’s technology platform as part of the competitive “moat” it seeks to expand.
Management said it plans to discuss strategic priorities and capital allocation in more detail at its first Acadian Investor Forum on May 19 in Boston.
About Acadian Asset Management (NYSE:AAMI)
Acadian Asset Management is a global investment management firm specializing in quantitative research and systematic strategies. Since its founding in 1986, the firm has developed data-driven models designed to identify and capture investment opportunities across equity and fixed income markets. By integrating advanced analytics, proprietary risk management tools and a disciplined investment process, Acadian seeks to deliver consistent performance for institutional clients.
The firm's core offerings include institutional equity portfolios, fixed income strategies and multi-asset solutions.
The article "Acadian Asset Management Q1 Earnings Call Highlights" was originally published by MarketBeat.
View Comments
- Acadian Asset Management Q1 2026 Earnings Call Summary
May 1, 2026
Acadian Asset Management Q1 2026 Earnings Call Summary - Moby
Strategic Performance and Operational Context
Achieved record AUM of $195.7 billion, a 61% year-over-year increase driven by $21.4 billion in quarterly net flows and market appreciation. Performance attribution was heavily influenced by a significant $16 billion enhanced mandate from a premier U.K. wealth manager, expanding the firm's presence in the wealth channel. Operating margin expanded by 978 basis points to 38.1%, reflecting improved operating leverage as recurring management fees grew 41% while expenses were managed through a disciplined framework. Management attributes the firm's competitive edge to its 40-year track record as a pure-play systematic manager, which helped generate alpha despite Q1 market volatility and a stronger dollar. The firm improved its short-term performance track record in Q1 2026 following a challenged 2025, while maintaining strong long-term results with 96% of strategies by revenue outperforming benchmarks over 3-, 5-, and 10-year periods. Operational focus remains on scaling the technology platform, with non-commission operating expenses increasing 8% to support IT infrastructure and data science capabilities.
Outlook and Strategic Initiatives
Management expects a slight headwind to average fee rates in the coming quarter as the full run-rate impact of the lower-fee St. James's Place mandate is realized. The variable compensation ratio for the full year 2026 is projected to be between 40% and 43%, assuming revenue mix and levels remain consistent with Q1. Strategic expansion into systematic credit is a key focus, with three flagship strategies approaching their critical three-year track record milestones between November 2026 and early 2027. The firm intends to maintain an active seed capital recycling program, redeploying capital from established extension strategies into new growth areas in the institutional and wealth spaces. Management plans to discuss its broader capital allocation framework and strategic priorities at the upcoming Investor Forum on May 19.
Risk Factors and Structural Dynamics
GAAP net income was partially offset by non-cash expenses related to changes in the value of Acadian LLC equity and profit interests. The first quarter saw a typical seasonal draw on the revolving credit facility, which management expects to fully pay down by year-end. Managed volatility strategies experienced slight outflows in Q1, though management noted these have tapered significantly compared to previous years. The firm is actively investing in AI and machine learning as an 'evolutionary' tool to enhance research and coding productivity rather than a disruptive threat.
Story Continues
Q&A Session Highlights
Institutional pipeline composition and momentum in extension strategies
Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here.
Management characterized the pipeline as 'very healthy' and granular, with significant interest in global emerging markets and international equities beyond the large U.K. mandate. Extension strategies accounted for approximately $2 billion of the $4 billion in net flows excluding the major St. James's Place win.
Impact of AI and data science on competitive moat
CEO Kelly Young stated AI is not a strategic threat but an extension of Acadian's DNA, emphasizing that human judgment remains central to risk controls. The firm is focusing AI investments on enterprise productivity, assisted coding, and supporting research workflows.
Capital allocation priorities and dividend policy sustainability
CFO Scott Hynes clarified that the firm does not manage to a specific payout ratio and will prioritize share repurchases over further dividend increases in the near term. The recent dividend increase to $0.10 reflects confidence in the expanded recurring management fee base, but it will not be revisited every quarter.
Systematic credit opportunities versus private credit markets
Management believes public systematic credit offers a compelling alternative to private credit due to superior transparency and liquidity. The firm is building a track record in systematic credit to capture market share as investors re-evaluate their private investment allocations.
One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.
View Comments
- Acadian Asset Management Inc. (AAMI) Q1 2026 Earnings Call Transcript
Apr 30, 2026 · seekingalpha.com
Acadian Asset Management Inc. (AAMI) Q1 2026 Earnings Call Transcript
- Acadian Asset Management (AAMI) Q1 Earnings and Revenues Beat Estimates
Apr 30, 2026 · zacks.com
Acadian Asset Management (AAMI) came out with quarterly earnings of $1.05 per share, beating the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.54 per share a year ago.
- Acadian Asset Management Inc. Reports Financial and Operating Results for the First Quarter Ended March 31, 2026
Apr 30, 2026 · businesswire.com
BOSTON--(BUSINESS WIRE)--Acadian Asset Management Inc. (NYSE: AAMI) today announced its results for the first quarter ended March 31, 2026. Acadian Asset Management Inc.'s earnings presentation is available at: ir.acadian-inc.com The Company will hold a conference call and simultaneous webcast to discuss the results at 11:00 a.m. Eastern Time today. To listen to the call or view the webcast, participants should: Dial-in Local Dial-in Number: (585) 542 9983 Toll Free Dial-i.
- ACADIAN ASSET MANAGEMENT INC. REPORTS FINANCIAL AND OPERATING RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2026
Apr 30, 2026
BOSTON--(BUSINESS WIRE)--ACADIAN ASSET MANAGEMENT INC. (NYSE: AAMI) TODAY ANNOUNCED ITS RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2026. ACADIAN ASSET MANAGEMENT INC.'S EARNINGS PRESENTATION IS AVAILABLE AT: IR.ACADIAN-INC.COM THE COMPANY WILL HOLD A CONFERENCE CALL AND SIMULTANEOUS WEBCAST TO DISCUSS THE RESULTS AT 11:00 A.M. EASTERN TIME TODAY. TO LISTEN TO THE CALL OR VIEW THE WEBCAST, PARTICIPANTS SHOULD: DIAL-IN LOCAL DIAL-IN NUMBER: (585) 542 9983 TOLL FREE DIAL-I.
- Bread Financial Holdings (BFH) Tops Q1 Earnings and Revenue Estimates
Apr 23, 2026
Bread Financial Holdings (BFH) came out with quarterly earnings of $4.18 per share, beating the Zacks Consensus Estimate of $3 per share. This compares to earnings of $2.86 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +39.57%. A quarter ago, it was expected that this manager of loyalty and rewards programs for retailers and others would post earnings of $0.4 per share when it actually produced earnings of $2.07, delivering a surprise of +417.5%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Bread Financial, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $1.02 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.12%. This compares to year-ago revenues of $970 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Bread Financial shares have added about 24.9% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for Bread Financial?
While Bread Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Bread Financial was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Story Continues
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.73 on $964.39 million in revenues for the coming quarter and $9.62 on $3.93 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Acadian Asset Management (AAMI), another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on April 30.
This asset manager is expected to post quarterly earnings of $0.98 per share in its upcoming report, which represents a year-over-year change of +81.5%. The consensus EPS estimate for the quarter has been revised 1.9% higher over the last 30 days to the current level.
Acadian Asset Management's revenues are expected to be $164.59 million, up 37.3% from the year-ago quarter.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bread Financial Holdings, Inc. (BFH) : Free Stock Analysis Report
Acadian Asset Management Inc. (AAMI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- Acadian Asset Management (AAMI) Reports Next Week: Wall Street Expects Earnings Growth
Apr 23, 2026 · zacks.com
Acadian Asset Management (AAMI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
- Is Trustmark (TRMK) Stock Outpacing Its Finance Peers This Year?
Apr 15, 2026
The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Trustmark (TRMK) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.
Trustmark is one of 837 individual stocks in the Finance sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Trustmark is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for TRMK's full-year earnings has moved 1.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, TRMK has moved about 15.1% on a year-to-date basis. In comparison, Finance companies have returned an average of -0.8%. This means that Trustmark is performing better than its sector in terms of year-to-date returns.
One other Finance stock that has outperformed the sector so far this year is Acadian Asset Management (AAMI). The stock is up 38.2% year-to-date.
Over the past three months, Acadian Asset Management's consensus EPS estimate for the current year has increased 6.3%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Trustmark belongs to the Banks - Southeast industry, a group that includes 53 individual companies and currently sits at #63 in the Zacks Industry Rank. Stocks in this group have gained about 4.8% so far this year, so TRMK is performing better this group in terms of year-to-date returns.
In contrast, Acadian Asset Management falls under the Financial - Miscellaneous Services industry. Currently, this industry has 107 stocks and is ranked #97. Since the beginning of the year, the industry has moved -9.1%.
Trustmark and Acadian Asset Management could continue their solid performance, so investors interested in Finance stocks should continue to pay close attention to these stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Story Continues
Trustmark Corporation (TRMK) : Free Stock Analysis Report
Acadian Asset Management Inc. (AAMI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
