Artisan Partners Asset Management (APAM)·Q4 2025 Earnings Summary
Artisan Partners Delivers Double Beat as Q4 Revenue Surges 13%, Operating Margin Hits 40%
February 4, 2026 · by Fintool AI Agent
Artisan Partners Asset Management (NYSE: APAM) delivered a strong Q4 2025, beating both revenue and EPS estimates as performance fees and market appreciation drove results. Revenue of $335.5M beat consensus by 3.6%, while adjusted EPS of $1.26 crushed the $1.09 estimate by 15.9% . Operating margin expanded 340 basis points sequentially to 40.2%, the highest level in at least two years . CEO Jason Gottlieb noted the firm "generated significant absolute returns for clients" with firmwide asset-weighted investment returns exceeding 20% net of fees .
Did Artisan Partners Beat Earnings?
Yes — a double beat. The asset manager exceeded expectations on both revenue and earnings:
*Consensus estimates from S&P Global
The revenue beat was driven by a higher weighted average fee of 74 bps (up from 68 bps in Q3) and approximately $29 million of performance fees from 6 different strategies . CFO CJ Daly noted that "strong relative investment performance in the fourth quarter across 3 performance fee-eligible accounts drove performance fees above our third quarter projections" . Approximately 3% of AUM is subject to performance fee arrangements, with the majority having annual measurement dates at end of December .
Beat/Miss History
Artisan has now beaten EPS estimates for eight consecutive quarters:
Ask Fintool AI AgentWhat Changed From Last Quarter?
Q4 2025 saw meaningful improvement across key operating metrics:
The 6 bps improvement in weighted average fee reflects the performance fee contribution — prior to Q4 2025, the company presented "weighted average management fee" excluding performance fees, but now includes them .
How Did Assets Under Management Perform?
AUM ended Q4 2025 at $179.9B, slightly below the Q3 2025 record of $181.3B but up nearly 12% year-over-year :
Full Year 2025 Flow Dynamics
The equity outflows remain a persistent challenge. CEO Jason Gottlieb acknowledged that results were "tempered by $12.7 billion of aggregate net outflows, which were largely concentrated in three growth-oriented equity strategies impacted by a combination of challenging short-term performance, changing asset allocation preferences, and profit taking on the back of strong long-term performance" . Despite the outflows, strong markets and investment returns added $33.4B to AUM in 2025 .
Credit: 31% AUM Growth and 22% Organic Growth
The credit franchise had an exceptional 2025. CEO Jason Gottlieb highlighted that credit-oriented investment franchises delivered strong short and long-term performance, with all six investment strategies outperforming their respective indices over 3 years with average outperformance of 390 basis points net of fees . Credit AUM grew 31% to $19.4B, the team raised $3.3B of net inflows, and organic growth hit 22% . Management anticipates continued strong organic growth in credit in 2026 .
Ask Fintool AI AgentInvestment Performance Remains Strong
A key driver of Artisan's value proposition is investment performance. As of Q4 2025:
Credit strategies achieved 100% outperformance across all time periods, with all six investment strategies outperforming their respective indices over 3 years by an average of 390 basis points net of fees .
Notable Strategy Returns (1-Year, Gross)
Capital Allocation and Dividends
Artisan continues to return substantial capital to shareholders through its quarterly and special dividend program:
The Q4 2025 dividend totaled $1.58 per share — consisting of a $1.01 variable quarterly dividend plus a $0.57 special annual dividend . Total dividends of $3.87 per share represented a 98% payout ratio relative to adjusted earnings and an 11% increase versus 2024 . Based on the December 31 stock price, this equates to a dividend yield of 9.5% .
Excess Capital: Even after funding dividends and near-term growth initiatives including Grandview, Artisan retains approximately $80 million of excess capital to fund organic growth and explore potential M&A opportunities .
CFO Daly also noted that Artisan funds distributed $1.5 billion in income and capital gains in Q4, with $2 billion for the full year — an $800 million increase from 2024 driven by strong absolute investment performance in their two largest equity mutual funds .
Balance Sheet
Strategic Developments: Grandview Partners Acquisition
Artisan acquired Grandview Property Partners, a real estate private equity firm specializing in originating, developing, acquiring, and managing middle-market properties across the U.S. The acquisition closed on January 2, 2026, making Grandview Artisan's 12th autonomous investment franchise .
Key details on Grandview:
- Leadership: Led by founding partners Raj Menon, Dean Soter, Eric Freeman, and Jeff Yusko — team has worked together for an average of 22 years
- Track Record: Since forming in 2018, delivered top-quartile results and consistent DPI realization
- Focus: Macro-driven approach targeting growth markets supported by shifting demographic trends; recent funds emphasized industrial, residential, and power land themes
- AUM: ~$880M across flagship fund series and co-investment programs
- Sourcing: Majority of transactions are off-market
Fund IV Timeline: Fund III was approximately $150M in committed assets and is almost through the investment period . CEO Gottlieb stated that Fund IV is "effectively launching as we speak" with a first close expected "early to mid part of the summer," noting it's expected to be "significantly higher" than Fund III .
CEO Gottlieb emphasized the strategic importance: "The acquisition of Grandview advances our strategic expansion into alternative investments, establishes a foundation in private real estate, and creates new pathways for growth. It also aligns with our long-standing business model: high value-added investing, talent-driven, and thoughtful growth" .
M&A Pipeline: Active Across Alternatives
During the Q&A, CEO Gottlieb provided insight into the M&A pipeline beyond Grandview :
- Private Credit: "Reasonably active, both in the form of lift-out and the potential for M&A"
- Private Equity Secondaries: "An area that we remain pretty active"
- Equity: "Some really interesting idiosyncratic opportunities" including one team they've been discussing for "five or six years" that is now "re-engaged"
- Credit Platform Expansion: Potential to "broaden out our credit platform, not necessarily just purely in privates, but also on the public side as well as the hybrid side"
Gottlieb emphasized that off-market transactions like Grandview will be the "more fertile hunting ground" for Artisan, noting that formally shopped deals "tend to be more about dollars and cents as opposed to investments" .
Leadership Update
On January 29, 2026, the Board appointed Ryan G. Von Hoff as Chief Accounting Officer and principal accounting officer . Von Hoff, 41, has served as the company's Corporate Controller since July 2022 and is both a CPA and CFA Charterholder .
Equity Strategy Response
Management is keenly aware of competitive pressures in public equities. CEO Gottlieb noted that "maintaining and growing AUM in public equities requires differentiated and compelling investment performance, asset allocation demand, the right vehicles and pricing, and effective sales and client service" . The company is actively working on new vehicles and other account types to better serve existing and future clients . On a positive note, six equity strategies generated over 500 basis points of annual outperformance in 2025, and 14 of 17 equity strategies have outperformed from inception net of fees .
Ask Fintool AI AgentWhat Did Management Say on the Q&A?
Emerging Markets Campaign: $1B+ Raised in 5 Months
CEO Gottlieb highlighted a successful emerging markets sales campaign :
"We think there's a reemergence of emerging markets allocations coming on the horizon... We're seeing some green shoots and some direct allocations coming out of that effort. I think we raised north of $1 billion in the five-ish plus months that we enacted that campaign... All four of them had over $100 million in net flows over that very short period of time. We fully expect that that campaign will be in force throughout 2026, as we see the pipeline grow and build."
Non-U.S. and Global Strategy Momentum
The company is seeing elevated engagement in international and global strategies :
- Global Value: "Shot the lights out performance-wise"
- Global Equity (Mark Yockey): "Produced a 47% return in 2025... on the heels of outstanding returns in prior years"
- International capabilities: "Starting to see some real activity" in Mark Yockey's international strategy
Credit: Multiple Growth Drivers
CFO CJ Daly and CEO Gottlieb highlighted several credit opportunities :
- Custom Credit Solutions: "Significant uptake and interest from our institutional marketplace" for bespoke solutions
- Floating Rate Fund: "Top quartile on a one-year, top quartile on a three-year"
- EMsights: "Firing on all cylinders" at the intersection of emerging markets and credit
- Global Unconstrained: Raised ~$500-600M through year-end — "really resonating with our intermediated wealth space as well as our institutional space"
Regional Institutional Outlook
Management provided a candid regional assessment :
- Europe: "A little bit more at risk" due to regulatory changes and short-term performance challenges in global growth strategies; "active/passive debate rages"
- U.S.: "More favorable institutionally" with opportunities in emerging markets and credit franchises
- Australia: Previously impacted by regulatory changes, now stabilizing
International Value Outflows: Not Concerning
On the elevated outflows in International Value, Gottlieb downplayed concerns :
"I wouldn't put too much emphasis on the elevation of the outflows... David and the team have just continued to deliver really exceptional absolute returns, even in the face of a challenging market for them. There's been some institutional reductions, just largely due to the impact of the equities book of several of our clients just outperforming, and so we're getting a little bit of that rebalance flow that you naturally expect."
How Did the Stock React?
The stock closed at $44.55 on February 3, 2026, down 1.9% heading into the earnings release. After-hours trading saw the stock rise to $45.65, up approximately 2.5% from the close, reflecting the positive earnings surprise.
Key Stock Metrics:
- 52-Week High: $48.50
- 52-Week Low: $32.75
- Current Price: $44.55 (regular close) / $45.65 (after-hours)
- Market Cap: ~$3.1B
- YTD Performance: Approximately +7%
2026 Expense Outlook
CFO CJ Daly provided detailed 2026 expense guidance :
The Grandview acquisition is expected to have "an immaterial impact on 2026 earnings" but will be "mildly accretive to earnings per share after the final closing of Grandview's next flagship closed-end drawdown fund" .
What to Watch Going Forward
Positives:
- Strong operating leverage — margins can expand further if AUM grows
- Credit franchise continues winning with 31% AUM growth and 22% organic growth in 2025
- Grandview acquisition adds private markets capability — Artisan's 12th autonomous investment franchise
- Performance fees provide Q4 upside annually
- 14 of 17 equity strategies have outperformed from inception net of fees
Concerns:
- Equity outflows persist (-$15.6B in 2025) despite strong performance
- Organic growth rate of -8% remains below peers
- Concentration in equity strategies (88% of AUM) limits diversification
- Sensitivity to market declines given fee structure
Key Metrics Summary
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