Affiliated Managers Group (NYSE: $AMG) delivered a strong finish to 2025, topping Wall Street expectations for the fourth quarter as growth in private markets and liquid alternatives continued to reshape the firm’s earnings profile.
For the quarter ended December 31, 2025, AMG reported Economic EPS of $9.48, ahead of consensus estimates near $8.75 and up sharply from $6.53 a year earlier. On a GAAP basis, diluted EPS came in at $11.21. Revenue rose to $556.6 million from $524.2 million in the prior-year period, modestly ahead of expectations.
The earnings beat marks the fourth consecutive quarter in which AMG has surpassed consensus EPS forecasts, underscoring consistent operating execution in a competitive asset management landscape.
Alternative Strategies Drive Growth
The headline story remains AMG’s accelerating pivot toward alternatives. During the fourth quarter, the firm generated approximately $12 billion in net client cash inflows, contributing to full-year net inflows of roughly $29 billion. Much of that momentum came from liquid alternative strategies, which recorded about $15 billion in inflows during the quarter and a record $51 billion for the full year.
Assets under management reached $813.3 billion at year-end, up from $707.9 billion a year earlier. Liquid alternatives AUM climbed to $227.2 billion, representing a 61% increase since the beginning of 2025. Private markets affiliates now manage approximately $146 billion, with continued fundraising strength across thematic and credit-oriented strategies.
Full-year results reinforced the trajectory. Economic EPS for 2025 rose 22% year over year to $26.05, while net income (controlling interest) increased to $716.6 million. Consolidated revenue for the year reached $2.07 billion.
Management emphasized disciplined capital allocation alongside organic growth. AMG committed more than $1 billion across five new growth investments in 2025, expanding exposure to private markets and liquid alternatives. The firm also repurchased $700 million of common stock during the year, equivalent to roughly 11% of shares outstanding, and refinanced junior convertible securities to streamline its capital structure.
Market Performance
Shares of AMG have responded positively to the improving earnings profile. Year to date, the stock has gained roughly 6–7%, outperforming the broader S&P 500’s low single-digit advance over the same period. Following the earnings release, shares traded near the $327 level, reflecting renewed investor confidence in the company’s growth strategy.
On a valuation basis, AMG trades at a trailing P/E of around 18x and a forward P/E near 10x, suggesting that the market is pricing in continued earnings expansion but not assigning an aggressive multiple relative to its growth rate. With Economic EPS up more than 20% year over year and significant capital returns through buybacks, the earnings yield remains attractive compared to many traditional asset managers.
Analyst sentiment remains constructive. Recent price targets cluster around the mid-$400 range, implying meaningful upside from current levels if earnings momentum persists and capital markets remain supportive. However, the stock’s near-term direction will likely hinge on management commentary regarding flows, fee rates, and deployment of capital into new affiliate partnerships.
What Comes Next
Looking ahead, consensus estimates call for approximately $6.64 in EPS on about $539 million in revenue for the upcoming quarter, and roughly $30.16 in EPS on $2.24 billion in revenue for the full fiscal year. While estimate revisions have been mixed, AMG’s consistent history of earnings beats could influence forward expectations in the coming weeks.
Industry dynamics also matter. The broader investment management sector currently ranks in the lower half of industry performance metrics, reflecting fee compression pressures and shifting asset allocation trends. AMG’s differentiated partnership model and growing scale in alternatives may help insulate it from some of these headwinds.
Is Affiliate Managers A Buy in 2026?
As 2026 unfolds, the key question for investors is whether strong inflows in liquid alternatives and private markets can sustain double-digit earnings growth. If capital markets remain stable and fundraising momentum continues, AMG appears positioned to extend its track record of disciplined growth and shareholder value creation.
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