AllianceBernstein Holding L.P.

Adjusted EPS was $0.82 per unit, up 8% year over year. Adjusted net revenues were $888 million, up 5% year over year. Operating expenses were $595 million, up 4%, and operating income was $293 million, up 7%, with adjusted operating margin expanding 70 basis points to 33%. Base fees grew 7% year over year, while performance fees were about $24 million versus $30 million last year. The company ended with record AUM above $905 billion. For full-year 2026, management now expects total performance fees of $115 million to $135 million, up from $95 million to $115 million previously; public market performance fees of $60 million to $70 million; private market performance fees of $55 million to $65 million; non-compensation expense of $620 million to $640 million; and an ABLP tax rate of 5% to 6%.

Seth Perry Bernstein said the quarter reflected strong business momentum despite an uncertain geopolitical and policy backdrop. He highlighted record AUM, the strongest sales quarter in 5 years, a return to positive organic growth, and private markets AUM reaching the firm’s $90 billion to $100 billion target more than a year early. He framed the Equitable/Corebridge combination as a major long-term accelerator that could expand AB’s flywheel across insurance, private markets, wealth, and retirement.

Thomas Rudolph Simeone said the quarter showed solid base fee growth, disciplined expense management, and continued operating leverage. He cited adjusted EPS of $0.82, adjusted net revenues of $888 million, a 33% adjusted operating margin, and a 48.5% compensation ratio, while noting the firm is lowering full-year non-comp expense guidance to $620 million to $640 million and the ABLP tax rate to 5% to 6%. He also said the firm expects $115 million to $135 million of full-year performance fees, with the private market outlook reduced mainly because of unrealized marks and tax events inside a fund, while Corebridge-related assets should carry high incremental margins once onboarded.

Analysts focused on the Corebridge/Equitable merger, asking how much of Corebridge’s general account AB could eventually manage and what that would mean for fees and margins. Management said the deal creates a large long-duration AUM opportunity, but gave no bottom-up asset split; it stressed that fee rate and margin are not 1:1, and that lower-fee fixed income assets can still be highly profitable because they use existing infrastructure. Questions also centered on Asia flows, competition in private wealth, private market performance fees, and the pace of adoption in defined contribution; management said Asia retail fixed income has been pressured by local market alternatives, private wealth remains resilient, and DC adoption is promising but likely a medium-term opportunity.