AllianceBernstein Q2 adjusted EPS misses estimates on equity outflows

Overview

• U.S. investment manager's Q2 revenue rose 7.5% yr/yr

• Adjusted EPS for Q2 missed analyst expectations

• Assets under management hit record $905.5 bln, up 9% yr/yr, driven by net inflows

Outlook

• Company enters second half of 2026 with nearly $26 bln institutional pipeline AUM

• AllianceBernstein sees continued expansion in private markets, insurance, retirement, wealth, active ETFs and SMAs

• Company says macroeconomic and geopolitical environment remains uncertain

Result Drivers

• FIXED INCOME AND ALTERNATIVES INFLOWS - Co said net inflows were led by a $9 bln passive fixed income mandate and $4 bln in alternatives, offsetting outflows in active equity and taxable fixed income

• RETAIL SALES MOMENTUM - Record $31 bln in retail gross sales and $0.9 bln net inflows reflected demand for tax-efficient income products, per CEO Seth Bernstein

• ACTIVE EQUITY AND TAXABLE FIXED INCOME OUTFLOWS - Outflows of $11 bln and $5 bln, respectively, were driven by retail redemptions in APAC region

Company press release: ID:nPn9ZWG2da

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management fund operators peer group is "buy."

• Wall Street's median 12-month price target for AllianceBernstein Holding LP is $39.00, about 2.9% above its July 27 closing price of $37.90

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)