Apollo Global Management stock posts record earnings, turns defensive

Published on 11/05/2026 at 15:58 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Apollo Global Management stock enters a new phase after a record quarter. Management is tightening credit standards as AI financing expands.

Record Earnings, More Defensive Lending

Management reported strong third-quarter execution across asset management and retirement services.
Apollo is prioritizing senior-secured, investment-grade credit and lower-levered equity as valuations and spreads remain demanding.
The company expects continued fee and spread-related earnings growth into 2027.

Apollo Global Management, US03769M1062, Illustration mit AI erstellt.

Apollo Global Management delivered record fee-related earnings in the third quarter ended September 30, 2026, while management outlined a more defensive approach to new lending. The company reported the results on Tuesday, November 3, and discussed the outlook during its earnings call.

Fee-related earnings reached USD 802 million, up 23 percent from a year earlier and 2 percent from the previous quarter. Spread-related earnings excluding notable items totaled USD 909 million, while adjusted net income came to USD 1.3 billion, or USD 2.07 per share. The figures were reported in Apollo's third-quarter release.

Apollo shifts toward lower risk

Chief Executive Officer Marc Rowan and President Jim Zelter said Apollo is reducing risk as valuations stay high, spreads remain tight and market risks increase. In credit, the firm is moving from below-investment-grade and unsecured exposures toward investment-grade and senior-secured lending. In equity, it is favoring less-levered or unlevered structures.

The strategy also shapes Apollo's AI financing. Management said it is focusing on power and chips, using secured and amortizing structures designed to avoid relying on residual asset values. The company cited a USD 40 billion GPU financing for SpaceX, but said discipline remains more important than chasing volume.

Origination reached USD 114 billion in the quarter, including USD 98 billion of debt. More than 80 percent of that debt was investment grade, with an average rating of BBB+, according to the earnings call transcript.

Growth outlook remains intact

Apollo said it remains on track for more than 20 percent fee-related earnings growth and 10 percent spread-related earnings growth in 2026. For 2027, management expects more than 20 percent fee-related earnings growth, supported by management-fee growth above 15 percent, alongside 10 percent spread-related earnings growth.