Apollo Global Management's stock performance has seen a premium P/E of 39.6x, driven by its reputation in private credit and retirement capital. Despite record Q2 2026 fee-related earnings of $785 million and spread-related earnings of $877 million, the stock slipped about 2.6% after the earnings release. The company reported a significant increase in Q2 2026 revenue to $11.065 billion (up 64% from Q2 2025), net income (excluding extra items) of $1.336 billion (up 129%), and basic EPS of $2.26 (up 127%). Its Fee Related Earnings (FRE) margin also improved to 58.5% from roughly 57.3%.
Apollo's bullish narrative is reinforced by these strong numbers, with revenue, net income, and EPS all moving in a positive direction, supported by robust inflows into asset management and retirement products. The 58.5% FRE margin highlights its position as a scaled, fee-driven franchise. This growth is largely attributed to its diversified alternatives and private credit platform, which is attracting significant capital.
However, the market's 2.6% share price decline suggests lingering concerns. Issues like gated withdrawals in a $25 billion retail private credit vehicle and ongoing regulatory scrutiny regarding valuations and insurance structures are contributing to this skepticism. The rapid growth in private credit and complex insurance links raise questions about liquidity and asset transparency, creating a tension between the company's strong earnings and these structural risks that pull sentiment in opposing directions. Athene, a significant component of Apollo, manages $392 billion in AUM and is crucial for Apollo's earnings growth and valuation.
