APAM · Artisan Partners Asset Management Inc.

Artisan Partners reported Q1 2026 results reflecting a mixed performance amid market volatility. Revenues of $303.0 million increased 9% year-over-year on 9% higher average AUM of $182.4 billion, though ending AUM declined to $173.0 billion from $179.9 billion prior quarter, driven by $3.1 billion net client cash outflows and $4.6 billion negative investment returns. Equity strategies faced $3 billion firmwide outflows due to client de-risking and shifts to passive products, partially offset by $1.1 billion inflows into credit and alternatives (23% annualized organic growth) and the $880 million Grandview Property Partners acquisition. Operating income rose 9% to $94.2 million with a stable 31.1% margin, while adjusted operating income grew 6% year-over-year. CEO Jason Gottlieb highlighted strategic progress, including the Grandview integration, strong credit performance (e.g., Artisan Global Unconstrained Fund surpassing $1 billion AUM), and long-term outperformance in strategies like Global Equity (620 bps 3-year net outperformance) and Sustainable Emerging Markets (280 bps). Balance sheet remains strong with $271.1 million cash, $190 million debt (0.4x leverage), and $433.1 million equity. The board declared a $0.77 per share variable dividend (80% of quarterly cash generation), payable May 29, signaling confidence in cash flows despite equity pressures. Management emphasized ongoing investments in distribution, EMEA expansion, and alternatives to drive long-term growth, supported by a robust balance sheet for M&A and capital returns.