AllianceBernstein (AB) investor relations material

Executive summary

• Achieved record assets under management (AUM) of $905.5 billion as of June 30, 2026, up 9.2% year-over-year and 8% sequentially, driven by strong market appreciation, sales momentum, and strategic investments across insurance, private wealth, retirement, SMAs, and active ETFs.

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

• Surpassed $91.1 billion in private markets AUM, exceeding the $90-$100 billion target ahead of schedule, with robust fundraising and deployment momentum.

• 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.

• Strong momentum in insurance and private wealth, with insurance AUM at $218 billion and private wealth at $167 billion, contributing nearly 40% of firm-wide revenue.

Financial highlights

• GAAP net revenues for Q2 2026 were $1.17 billion, up 7.5% year-over-year; adjusted net revenues reached $888 million, a 5% increase year-over-year.

• Adjusted earnings per unit (EPU) for Q2 2026 were $0.82, up 8% year-over-year; adjusted net income per unit was $0.91.

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

• 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 2026 performance fee outlook to $115-$135 million, driven by public market strategies; non-compensation expense outlook lowered to $620-$640 million; tax rate guidance reduced to 5%-6%.

• Expect Corebridge merger to add $100 billion in AUM over several years, expanding scale and providing high incremental margins.

• Entering the second half of 2026 with a $26 billion institutional pipeline, including $12 billion in commercial mortgage loans.

• Management expects continued growth in AUM and revenues, supported by strong market performance and new asset inflows.

• Permanent capital commitments from EQH are expected to accelerate growth in private alternatives.