AllianceBernstein (AB) investor relations material

Executive summary

• Achieved record assets under management (AUM) of $905.5 billion as of June 30, 2026, up 9% year-over-year and 8% sequentially, driven by strong market appreciation, organic growth, and robust demand for long-duration asset and wealth solutions across insurance, private wealth, retirement, SMAs, and active ETFs.

• Returned to positive organic growth with $0.8 billion in net inflows, ending four quarters of outflows and marking the strongest sales quarter in five years, with strong sales momentum across retail, institutional, and private wealth channels.

• Private markets AUM reached $91.1 billion, surpassing the 2027 target ahead of schedule, with robust fundraising and deployment momentum.

• Strategic partnerships, vehicle innovation, and global expansion of active ETFs and new retirement solutions fueled growth.

• Net income attributable to unitholders rose 21.3% year-over-year to $255.2 million for Q2 2026, driven by higher investment advisory base fees, investment gains, and performance-based fees.

Financial highlights

• Adjusted earnings per unit were $0.82, up 8% year-over-year; adjusted net revenues reached $888 million, a 5% increase; GAAP net revenues were $1.17 billion, up 7.5% year-over-year.

• GAAP operating income grew 30% year-over-year to $289 million; adjusted operating income rose 7% to $293 million; adjusted operating margin expanded to 33.0%.

• Base fees grew 7% year-over-year; performance fees totaled $24 million, down from $30 million last year.

• Total operating expenses were $595 million, up 4% year-over-year, with a compensation ratio of 48.5%.

• Cash distribution per unit was $0.82, up 7.9% year-over-year, with a 100% distribution ratio.

Outlook and guidance

• Raised full-year performance fee outlook to $115 million-$135 million, driven by public market strategies; FY26 non-compensation expense guidance lowered to $620–640 million and tax rate to 5%-6%.

• Expect Corebridge merger to add $100 billion in AUM over several years, with high incremental margins despite lower fee rates.

• Strong fundraising and alternatives deployment expected to drive incremental revenues in the second half.

• Management remains focused on executing strategic priorities and delivering long-term value amid ongoing macroeconomic and geopolitical uncertainty.