Cohen & Steers (CNS) Q1 2026 earnings summary

Executive summary

• Q1 2026 earnings per share were $0.79 as adjusted, slightly down from $0.81 sequentially, with GAAP EPS at $0.82 and a 21.6% sequential increase; net income as adjusted was $40.7 million, down 2.5% sequentially but up 6.1% year-over-year.

• Operating margin was 35.1% as adjusted, down from 36.4% prior quarter, while GAAP margin improved to 34.4%, up 640 bps sequentially.

• Ending AUM reached $93.1 billion, up from $90.5 billion, driven by $2.7 billion in market appreciation and $497 million in net inflows.

• 86% of AUM outperformed benchmarks on a one-year basis, with three- and five-year outperformance rates above 97%; 90–95% of open-end fund AUM is rated four or five stars by Morningstar.

• The firm advanced growth initiatives in ETF platforming, non-traded REITs, and launched a new listed private real estate LP for institutions.

Financial highlights

• Revenue as adjusted was $144.3 million, up from $143.8 million sequentially; total revenue reached $145.6 million, up 1.3% sequentially and 8.3% year-over-year.

• Operating income was $50.7 million, down from $52.4 million sequentially, while non-operating income rose to $7.1 million from $2.0 million.

• Total expenses increased due to higher compensation and distribution/service fees; compensation ratio was 40%.

• Liquidity at quarter end was $343 million, a decrease attributed to annual incentive compensation; cash, cash equivalents, and liquid seed investments totaled $342.9 million.

• Market appreciation contributed $2.7 billion to AUM, reversing the prior quarter's depreciation.

Outlook and guidance

• Compensation ratio expected to remain at 40% for 2026; G&A expenses projected to rise mid-single digits year-over-year.

• Effective tax rate guidance for 2026 is 25.5% as adjusted; actual effective tax rate was 27.4% in Q1 2026.

• Management remains constructive on long-term benefits of blending listed and private real estate and expects continued positive flows in global real estate strategies.

• Forward-looking statements are subject to risks and uncertainties detailed in the latest 10-K.