Key Highlights

  • Consensus EPS of 0.96 compares with reported second-quarter EPS of 1.11 and adjusted EPS of 0.94.
  • Consensus revenue of USD 307.60 million compares with second-quarter revenues of USD 307.9 million, up 9% year over year.
  • Assets under management rose USD 10.4 billion, or 6%, to USD 183.4 billion from March 31, 2026.
  • Net client cash outflows were USD 10.5 billion in the quarter, against outflows of USD 1,863 million a year earlier.

Artisan Partners Asset Management (NYSE:APAM) reports third-quarter results on Tuesday, Oct. 27, after the market closes. Consensus stands at EPS of 0.96 on revenue of USD 307.60 million, and the company has a market capitalization of USD 2.70 billion.

Artisan Partners Asset Management is an investment manager that earns management fees from Artisan Funds, Artisan Global Funds and separate accounts and other vehicles. In the second quarter, revenues were USD 307.9 million against USD 282.8 million, an increase of 9%.

Estimates Against GAAP and Adjusted EPS

The EPS estimate of 0.96 is below the basic and diluted EPS of 1.11 reported for the second quarter and above the adjusted EPS of 0.94, which compared with 0.83 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 307.60 million is below the USD 307.9 million reported.

Operating income was USD 84.6 million against USD 79.8 million. The company declared and distributed dividends of 0.77 per Class A share.

Assets Under Management and Client Cash Flows

Assets under management increased to USD 183.4 billion from USD 173.0 billion at March 31, 2026, primarily from USD 21.2 billion of market appreciation, partly offset by USD 10.5 billion of net client cash outflows. Average assets under management were USD 181.9 billion, up 9% from USD 166.8 billion a year earlier.

Net client cash flows were an outflow of USD 10,499 million against an outflow of USD 1,863 million. The weighted average fee was 67.9 basis points against 68.1.

Fee Lines, Expenses and Margins

Management fees were USD 307,709 thousand against USD 282,749 thousand, with Artisan Funds at USD 180,634 thousand, Artisan Global Funds at USD 17,331 thousand and separate accounts and other at USD 109,744 thousand. Performance fees were USD 200 thousand against none.

Operating expenses were USD 223,286 thousand against USD 202,977 thousand, led by compensation and benefits of USD 181,985 thousand against USD 165,876 thousand. General and administrative expenses were USD 12,391 thousand against USD 9,479 thousand, and amortization of intangible assets was USD 240 thousand against none.

The GAAP operating margin was 27.5% against 28.2%, and the adjusted operating margin was 32.9% against 31.7%.

Acquisition Items and Balance Sheet

Net income attributable to the company was USD 80,828 thousand against USD 67,555 thousand, and income before income taxes was USD 126,726 thousand against USD 120,849 thousand. The net investment gain of nonconsolidated investment products was USD 28,050 thousand against USD 15,919 thousand.

Cash and cash equivalents were USD 334,525 thousand at June 30, 2026 against USD 214,446 thousand at the prior year-end. Goodwill was USD 40,339 thousand against none, and contingent consideration was USD 26,080 thousand. The estimates table lists a market capitalization of USD 2.70 billion.

Comparisons to Make in the Report

EPS against 0.96 and revenues against USD 307.60 million are the headline comparisons. Other markers are assets under management against USD 183.4 billion, net client cash flows and the adjusted operating margin.