Strong results for the first quarter of 2026, beating analysts' expectations despite significant share price losses since the start of the year. The alternative asset manager reported earnings per share of USD 0.19, beating forecasts by 5.56%. The turnover of 753.8 million US dollars was 9.3 % above expectations.
Shares of Blue Owl Capital surged on Thursday after the company announced that it had sold about half of its stake in SpaceX at a valuation of $1.25 trillion, underscoring a significant return on its early investment.
The stock gained more than 10% during the session as investors reacted positively to the update as well as better-than-expected quarterly results and steady growth in assets under management.
Blue Owl delivered strong financial results across all key metrics in the quarter ended March 31, 2026. Fee-related revenue (FRE) reached $393.6 million, or $0.25 per adjusted share, representing 14% year-over-year growth. Distributable earnings (DE) totaled $292.5 million, or $0.19 per share, up 11% from the prior year period.
Asset growth & diversification
Blue Owl's assets under management reached USD 314.9 billion as of March 31, 2026, up 15% from USD 273.3 billion in the prior year. Fee-based assets under management grew by 8 % to USD 188.4 billion, while permanent capital - a key indicator of earnings stability - increased by 15 % to USD 224.8 billion. It is worth noting that permanent capital generated 85% of fee-free management fees in the last twelve months.
Fundraising momentum
Blue Owl raised USD 11.0 billion in new capital commitments in the first quarter, including USD 9.0 billion in new equity. This represents a 34% increase on the USD 6.7 billion raised in the first quarter of 2025 and signals increasing investor demand despite general market uncertainties.
Forward-looking statements & outlook
Management anticipates continued growth in assets under management while expecting the payout ratio to decline as the business expands. Analyst forecasts point to steady profit growth: Earnings per share (EPS) are estimated at USD 2.10 for the 2026 financial year and USD 2.44 for the 2027 financial year, which corresponds to year-on-year growth of 16%.
Blue Owl announced an annual dividend of $0.92 per Class A share for 2026 and confirmed the quarterly dividend of $0.23 per share. The company has increased the dividend for five consecutive years and currently offers a dividend yield of 10%. During the quarter, Blue Owl repurchased 1.7 million shares for $25.0 million, underscoring management's confidence in the stock's valuation despite recent share price declines.
