KKR & Co. Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP Net Income attributable to KKR & Co. Inc. common stockholders was $1.12 billion for the quarter (up from $860 million in 3Q'25) and $2.15 billion year-to-date (up from $1.15 billion in 3Q'25 YTD).
• Total Revenues were $4.56 billion for the quarter (down from $5.53 billion in 3Q'25) and $14.61 billion year-to-date (up from $13.73 billion in 3Q'25 YTD).
• Fee Related Earnings (FRE) were $1.3 billion for the quarter ($1.42 per adjusted share), up 27% year-over-year, and $4.5 billion for the trailing twelve months (LTM), up 26% year-over-year.
• Total Operating Earnings (TOE) were $1.7 billion for the quarter ($1.88 per adjusted share), up 25% year-over-year, and $5.9 billion for the LTM, up 23% year-over-year.
• Adjusted Net Income (ANI) was $1.6 billion for the quarter ($1.78 per adjusted share), up 29% year-over-year, and $5.4 billion for the LTM, up 18% year-over-year.
• Insurance Operating Earnings were $230 million for the quarter, including a $26 million charge related to an annual actuarial assumption review; excluding this impact, earnings would have been $257 million.
• Strategic Holdings Operating Earnings were $192 million for the quarter, up from $58 million in 3Q'25.
• Net Investment Income for the Insurance segment was $1.9 billion for the quarter, up from $1.8 billion in 3Q'25.
• Net Cost of Insurance was $1.6 billion for the quarter, up from $1.4 billion in 3Q'25.
• Total Segment Earnings were $2.09 billion for the quarter (up from $1.70 billion in 3Q'25) and $5.66 billion for the LTM (up from $6.02 billion in 3Q'25 LTM).
• Cash and Short-term Investments totaled $5.4 billion; Outstanding Debt was $9.3 billion, resulting in Net Cash and Investments of $5.0 billion.

Guidance and Future Outlook:

• KKR expects to return more than $40 billion to clients in 2026, exceeding the previous annual record by more than 50%.
• The sale of USI Insurance Services is expected to close in the fourth quarter of 2026, generating approximately $2.0 billion of ANI (over $2.00 ANI per share) in 4Q'26 results, subject to closing conditions.
• KKR anticipates Strategic Holdings Operating Earnings to contribute more meaningfully to Total Operating Earnings over time.
• Management expects to continue monetizing investments and returning capital to clients at record levels.

Business Segments and Product Lines:

• Asset Management:
  • Assets Under Management (AUM) reached $804 billion, up 11% year-over-year; Fee Paying AUM (FPAUM) was $648 billion, up 11% year-over-year.
  • New Capital Raised was $25 billion in the quarter and $116 billion in the LTM.
  • Capital Invested was $20 billion in the quarter and $98 billion in the LTM.
  • Private Equity: AUM increased 15% year-over-year to $256 billion; organic new capital raised was $4 billion in the quarter. The traditional private equity portfolio appreciated 7% in the LTM.
  • Real Assets: AUM increased 14% year-over-year to $212 billion; organic new capital raised was $7 billion in the quarter. Global Infrastructure V held its final close with total commitments of $19.2 billion. The infrastructure portfolio appreciated 9% in the LTM, while the opportunistic real estate portfolio declined 2%.
  • Credit and Liquid Strategies: AUM increased 7% year-over-year to $337 billion; organic new capital raised was $14 billion in the quarter. The leveraged credit and alternative credit composites both appreciated 4% in the LTM.
  • Capital Markets: Transaction fees totaled $290 million in the quarter; approximately 70% were originated in North America and 80% were debt product focused.
• Insurance:
  • Global Atlantic AUM totaled $223 billion, of which $170 billion is Credit AUM.
  • Inflows were primarily driven by individual markets annuity sales, funding agreements, and institutional flow business.
• Strategic Holdings:
  • KKR's share of 2Q'26 LTM Adjusted Revenues was $4.5 billion and LTM Adjusted EBITDA was $1.1 billion.
  • Earnings were driven by dividends from Strategic Holdings businesses.

Market and Competitive Landscape:

• Perpetual capital represents 43% of AUM and 50% of FPAUM, totaling $344 billion.
• 93% of AUM is perpetual capital or has a duration of at least 8 years at inception; 54% has a duration of at least 15 years at inception.
• Gross unrealized carried interest totals $9.7 billion as of September 30, 2026.
• Performance Fee Eligible AUM was $493 billion, up 15% year-over-year.
• Uncalled Commitments (Dry Powder) were $146 billion, diversified across investment strategies.

Risks and Challenges:

• Insurance Operating Earnings included a $26 million charge related to the annual actuarial assumption review, highlighting sensitivity to actuarial assumptions.
• The sale of USI Insurance Services is subject to closing conditions, with no assurance of completion.
• Forward-looking statements regarding capital returns and performance are based on estimates and assumptions that may not materialize.
• Risks include market volatility, geopolitical events, regulatory changes, and the potential for actual realized values of investments to differ from current valuations.

Management Commentary and Tone:

• Co-Chief Executive Officers Joseph Y. Bae and Scott C. Nuttall reported record Fee Related Earnings, Total Operating Earnings, and Adjusted Net Income per share for the second consecutive quarter on both a quarterly and LTM basis.
• Management highlighted the continued monetization of investments and record levels of capital returns to clients.
• The tone reflects confidence in the durability of earnings, noting that 84% of segment earnings come from the more durable and recurring portions (FRE, Insurance Operating Earnings, and Strategic Holdings Operating Earnings).

Other Key Points:

• Share Repurchases: From June 30 through November 4, 2026, KKR used $567 million to repurchase and retire 6.2 million shares at an average price of $92 per share. On November 6, 2026, KKR approved an additional $500 million increase to its share repurchase program.
• Dividends: A regular dividend of $0.195 per share of common stock was declared for the quarter, payable on December 3, 2026. A dividend of $0.78125 per share of Series D Mandatory Convertible Preferred Stock was declared, payable on December 1, 2026.
• Acquisitions: The AUM rollforward includes $15.996 billion in acquisitions, primarily representing the Arctos acquisition.
• Embedded Gains: Embedded unrealized gains on the balance sheet totaled $2.4 billion at quarter end.
• Credit Rating: KKR & Co. Inc. holds an 'A' rating from both S&P and Fitch.
• Debt Profile: Average maturity of debt is approximately 15 years with an after-tax weighted average fixed coupon of 3%. Debt capacity includes a $3 billion undrawn revolving credit facility.