APO Apollo Global Management 10-Q 2026-09-30 section summaries

Apollo Global Management (APO) — Q3 and nine months ended September 30, 2026

Consolidated results

Amounts in $B, except per-share data.

Q3 revenue fell sharply as Retirement Services investment-related results swung from gains to losses. The 9M decline was much smaller: investment-related losses were a major drag, partly offset by higher net investment income. Athene’s investment-related gains (losses), net of offsets, were $(2.661)B in Q3 2026 versus $0.463B of gains, and $(3.334)B for 9M versus $0.105B of gains. Athene net investment income rose to $5.701B from $5.013B in Q3, and to $16.190B from $14.130B for 9M. Its investment-related losses were $3.418B in Q3 versus $2.254B of gains, and $2.507B for 9M versus $1.421B of gains. Mortgage-loan and derivative results were important sources of volatility.

Segment performance

Segment revenue and profit measures are management’s non-GAAP measures; Q3 figures shown except where 9M is included.

Asset Management 9M revenue was $3.979B versus $3.221B, up 23.5%, compared with Q3 growth of 19.7%. Principal Investing 9M revenue was $1.025B versus $669M and PII was $143M versus $111M. Segment Income was $4.898B versus $4.445B for 9M. Segment Income excludes specified market volatility and other items, so its growth contrasts with the GAAP loss.

Cash flow, balance sheet and capital

Amounts in $B unless noted.

Goodwill comprised $1.977B in Asset Management and $4.079B in Retirement Services. Intangible assets other than goodwill were not separately reported; deferred acquisition costs, deferred sales inducements and value of business acquired were $9.598B and are distinct balance-sheet items. Debt of $14.749B is the debt-table total; a further $0.500B of consolidated-VIE secured borrowings brings the reported balance-sheet debt total to $15.249B.

The $4.363B deterioration in AOCI during 9M primarily reflected AFS investment losses without a credit allowance, partly offset by $5.909B of remeasurement gains on future policy benefits related to discount rates. AFS securities had $259.922B amortized cost, a $0.763B credit-loss allowance and $239.707B fair value at September 30; gross unrealized losses were $20.569B. Athene attributed most unrealized losses to interest-rate changes, said it intended to hold the securities, and did not expect to be forced to sell before recovery of amortized cost.

Funding, liabilities and shareholder matters

Apollo issued $750M of 5.700% senior notes due 2036 and Athene issued $1.0B of 6.150% notes due 2036; Athene repaid $500M of 2026 notes. Revolving and liquidity facilities were undrawn at quarter-end, with covenants met. A $1.7B valuation allowance against Bermuda deferred tax assets drove the $1.746B 9M tax provision, versus $684M in 2025. Apollo also disclosed an IRS draft proposal concerning 2019–2021 foreign-investment income; it disputes the position and cannot estimate a potential loss.

The mandatory convertible preferred stock converted into 14.588M common shares during 2026. At quarter-end, 35.013M RSUs were outstanding, including 17.668M unvested; $979M of estimated unrecognized RSU compensation was expected to be recognized over a weighted-average 2.1 years. Athene reported $33.7B of investment commitments, primarily for investment funds and mortgage loans, most expected to be invested over five years. A $35B capital-solution agreement supports Broadcom’s financing of Anthropic compute expansion; Athene held $691M of related Big Sky debt securities and had $4.9B of additional commitments, while consolidated VIEs held $154M of related risk-retention interests and had $1.3B of further commitments.

Apollo’s October 2026 agreement to invest $1.25B in Mubadala Capital Asset Management was subject to customary closing conditions and regulatory approvals. On November 3, Apollo declared a $0.5625-per-share dividend, payable November 30.

Apollo Global Management — Q3 and nine months ended September 30, 2026

Apollo is a global alternative asset manager and retirement-services provider, with $1.073599 trillion of AUM at September 30, 2026. Its reportable segments are Asset Management, Retirement Services (Athene), and Principal Investing. Q3 GAAP results were sharply affected by market-sensitive investment losses, especially at Athene, even as fee-related earnings grew.

Consolidated results

Q3 revenue declined 51.8%, principally because Retirement Services’ investment-related results swung to losses; 9M revenue declined 5.6%. Retirement Services investment-related losses were $(3.418) billion in Q3 versus gains of $2.254 billion, and $(2.507) billion for 9M versus gains of $1.421 billion. Higher Treasury rates drove fair-value declines in mortgage loans, reinsurance assets and trading securities; indexed-annuity hedges and other derivatives also affected results. Higher rates benefited some investment income and discount-rate remeasurement, illustrating the sensitivity of reported earnings to market movements.

Segment revenue and operating results

The 9M revenue columns are included because the year-to-date trends differ materially from Q3: Asset Management revenue grew 7.7% for 9M despite declining in Q3, while Retirement Services revenue fell 8.2% for 9M versus 58.5% in Q3. Asset Management growth in fees was outweighed in Q3 by lower investment income and performance allocations. Bridge, acquired in September 2025, contributed to management and property-related fees; growth also reflected Atlas, Athora’s acquisition of PIC, and subscriptions. Advisory and transaction fees benefited from direct origination, infrastructure and clean-transition equity, opportunistic credit, and other strategies. Nine-month investment income was $114 million versus $936 million, including lower performance allocations.

Asset Management’s Q3 fee growth did not fully offset investment losses: Fund IX and Fund VIII recorded performance-allocation losses of $209 million and $162 million, respectively. For 9M, gross performance fees were $561 million, but net fees after profit-sharing payable/expense were $(30) million. Fund VIII’s remaining investments and escrow cash were valued at 86% of unreturned capital, below its 115% escrow requirement, limiting current distributions and highlighting realization and clawback risk.

Segment earnings measures

FRE increased with management and capital-solutions fees, partly offset by higher compensation and operating costs. SRE declined as cost of funds rose faster than investment earnings: Q3 net investment earnings increased to $4.282 billion from $3.744 billion, but net investment spread fell to $1.098 billion from $1.118 billion. Q3 spread narrowed 22 basis points to 1.38%; the earned rate rose to 5.38% from 5.34%, while cost of funds rose to 4.05% from 3.79%. Unfavorable assumption unlocking increased 2026 benefits and expenses by $515 million, compared with a $55 million decrease in 2025. PII reflects volatile realized performance fees and investment income; higher performance-related compensation absorbed much of the revenue growth.

Assets under management and cash flows

Total AUM included $869.718 billion of Credit and $203.881 billion of Equity. Nine-month flows reflected subscriptions, retirement-services client asset growth and Athora’s PIC acquisition; PIC contributed $65.3 billion of inorganic Credit inflows. Fee-Generating AUM also benefited from a Redding Ridge fee-basis adjustment. Apollo-managed or advised Athene AUM was $426.6 billion at September 30, 2026, versus $381.8 billion a year earlier; Athora AUM was $123.3 billion versus $57.5 billion.

Cash flow, liquidity and capital

At September 30, Apollo reported $21.3 billion of unrestricted cash and cash equivalents and $5.6 billion available under AGM, Athene and Athene liquidity facilities. Athene’s facilities included an undrawn $1.75 billion credit facility and an undrawn $2.6 billion liquidity facility. Athene had $8.8 billion of long-term debt; its credit facility includes a maximum debt-to-capitalization covenant of 40% and a minimum consolidated net worth covenant of $22.1 billion. FHLB funding agreements outstanding were $29.9 billion at principal amount, versus $23.3 billion at year-end; estimated drawable capacity, inclusive of outstanding borrowings, was $33.8 billion.

Athene’s net invested assets were $322.491 billion, up from $292.414 billion at December 31, 2025. Its broader investment portfolio, including related parties and consolidated VIEs, had a carrying value of $416.789 billion. AFS securities were 97.7% investment grade (NAIC 1 or 2). Liquidity risks include potential policyholder withdrawals and less-liquid or pledged assets; 87% of deferred annuity liabilities were subject to surrender penalties, versus 85% at year-end. Disclosed contractual obligations totaled $440.424 billion, predominantly long-dated Retirement Services policy and contract liabilities.

GAAP common shares outstanding increased from 578.981 million at December 31, 2025 to 590.669 million at September 30, 2026. All mandatory convertible preferred shares converted to common on July 31, 2026.

Tax and other material exposures

A Q1 2026 Bermuda tax valuation allowance reduced other assets and equity by $1.7 billion and increased income-tax provision; 9M tax provision was $1.746 billion versus $684 million, and the effective tax rate was 134.1% versus 13.9%. The company expects favorable longer-term tax effects from the Bermuda tax change, subject to U.K. implementation of OECD guidance. Atlas’s deferred purchase obligation to CS was reduced from $3.3 billion to $2.5 billion after $0.8 billion of future fees were relinquished; Apollo recorded no liability for related assurance letters because payment was assessed as not probable.

Market risk

Apollo reported no material changes in market-risk exposures from those described in its 2025 Annual Report, except that Athene’s interest-rate sensitivity increased. Apollo’s asset-management market risk mainly reflects how changes in fund investment fair values affect performance fees and management-fee revenue, direct-investment gains or losses, and equity-method income. Athene’s principal exposures are credit, interest-rate and equity-price risks arising from its investment portfolio, counterparties, hedging and reinsurance.

Athene interest-rate sensitivities

The greater sensitivity primarily reflects purchases of longer-maturity assets and 2026 derivative activity. The estimate covers fair-value instruments whose changes are recognized in earnings, including derivatives, embedded derivatives, mortgage loans, certain fixed-maturity securities and market-risk benefits. It excludes instruments such as available-for-sale fixed-maturity securities, whose fair-value changes are recognized in equity.

For a 25-basis-point rate increase sustained for 12 months, Athene estimates spread-related earnings would increase by approximately $10 million from floating-rate assets and liabilities; a comparable rate decrease would generally have a similar negative effect. Separately, a 25-basis-point parallel increase is estimated to add approximately $30 million to $50 million to 12-month spread-related earnings through market-risk benefits, with a similar decrease generally expected from a rate decline. These estimates exclude future assumption changes.

Current-period interest-rate-curve changes affecting market-risk-benefit fair values flow through net income but are excluded from spread-related earnings. Rate-driven changes in projected GLWB and GMDB rider-benefit costs are amortized into cost of funds over the life of the business.

Limitations and risk considerations

Athene cannot reliably forecast the net-income effects of longer-lasting rate changes or changes in yield-curve shape; related effects on adjustments reconciling net income to spread-related earnings are likely significant. The sensitivities depend on assumptions and significant estimates, assume an immediate rate move and no discretionary management response, and may differ materially from actual results. Active asset-liability management can alter exposure over time. Fair-value declines in fixed-maturity securities generally would be realized only if Athene needed to sell at a loss to meet liquidity needs, absent issuer credit concerns that require credit-loss recognition.

Disclosure Controls and Internal Control

Management, including the CEO and CFO, concluded that Apollo’s disclosure controls and procedures were effective at the reasonable-assurance level as of period-end. No changes during the most recent quarter materially affected, or were reasonably likely to materially affect, internal control over financial reporting. The filing notes that controls provide reasonable, not absolute, assurance and are subject to design limitations.

The company reported no material changes to the risk factors described in its 2025 Annual Report. It cautioned that risks not currently known, or considered immaterial, could still materially adversely affect its business, financial condition, or operating results. This section disclosed no new financial metrics or specific risk developments.

For the three months ended September 30, 2026, no Apollo Global Management, Inc. director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement. The section then begins the company’s Exhibit Index.