KKR & Co. to Post Q4 Earnings: Here's What to Expect From the Stock

KKR & Co. Inc. KKR is slated to report fourth-quarter 2025 results on Feb. 5, 2026, before the opening bell. Its earnings in the quarter are expected to have decreased year over year, while revenues are projected to increase.In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate. Its results have primarily reflected impressive growth in assets under management (AUM) and transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.The company boasts an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average beat being 3.97%.KKR & Co. Inc. Price and EPS Surprise KKR & Co. Inc. price-eps-surprise | KKR & Co. Inc. QuoteEarnings & Sales Estimates for KKRThe Zacks Consensus Estimate for earnings for the fourth quarter of 2025 is pegged at $1.21 per share, which has been revised downward over the past week. The figure indicates a decrease of 8.3% from the year-ago quarter’s reported number.The consensus estimate for sales for the fourth quarter of 2025 is pegged at $1.44 billion, reflecting a 15.1% year-over-year increase.The Zacks Consensus Estimate for full-year 2025 earnings is pegged at $4.95 per share, which has also been revised downward over the past week. The estimate indicates a 5.3% increase from the prior year’s reported figure.The consensus estimate for full-year 2025 sales is pegged at $5.39 billion, reflecting a 13.1% year-over-year increase.KKR’s Recent DevelopmentsIn January 2026, KKR & Co. divested several business units of Janney Montgomery Scott LLC, a financial services firm in which it holds a majority stake, to Huntington Bancshares HBAN. The transaction, agreed upon in November 2025, included Janney’s merger and acquisition advisory, public finance and fixed-income sales and trading units. The divestiture allows KKR to monetize non-core assets and sharpen its focus on its core alternative investment and asset management businesses.Now, let us discuss the factors that are likely to have influenced KKR’s fourth-quarter performance.Key Factors & Estimates for KKR in Q4KKR has been witnessing increases in fee-earning AUM and total AUM, driven by its diversified product and revenue mix, superior position in the alternative investments space and net inflows. Given the increased client activity in the fourth quarter, KKR is expected to have recorded a rise in AUM balance as inflows strengthened.The Zacks Consensus Estimate for AUM is pegged at $740 billion, suggesting a rise of 16.1% from the prior-year quarter. Likewise, the consensus estimate for fee-paying AUM is pegged at $598.5 billion, indicating a 16.9% year-over-year increase.The Zacks Consensus Estimate for management fees (segment revenues) for the to-be-reported quarter is pegged at $1.09 billion, suggesting growth of 20.4% from the prior-year quarter. The consensus estimate for fee-related performance revenues (segment revenues) of $31.7 million implies an increase of 26.3% on a year-over-year basis.Additionally, KKR expects profits from deal exits to have been limited in the to-be-reported quarter. The company’s preliminary estimate, between Oct. 1 and Dec. 19, 2025, for total realized performance income and net realized investment income is more than $525 million, implying a decrease from $725 million in the prior-year quarter.Talking about expenses, KKR is likely to have reported elevated expenses in the to-be-reported quarter, driven by higher employee compensation, commission and reinsurance expenses. The company anticipates the expense to be elevated due to higher placement fees and growing fundraising activities.What Our Model Predicts for KKROur proven model does not predict an earnings beat for KKR this time. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you can see below.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Earnings ESP: The Earnings ESP for KKR is -4.08%.Zacks Rank: The company currently carries a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank stocks here.Performance of KKR's PeersInvesco’s IVZ fourth-quarter 2025 adjusted earnings of 62 cents per share surpassed the Zacks Consensus Estimate of 57 cents. The bottom line increased 19.2% from the prior-year quarter.IVZ’s results have been primarily aided by an increase in adjusted revenues. Moreover, growth in the AUM balance to record levels supported the results to an extent. However, an increase in adjusted operating expenses was a headwind.Franklin Resources Inc. BEN reported first-quarter fiscal 2026 (ended Dec. 31, 2025) adjusted earnings of 70 cents per share, which surpassed the Zacks Consensus Estimate of 55 cents per share. Also, the bottom line compared favorably with 59 cents reported in the year-ago quarter.The results benefited from higher revenues and an improved AUM balance. However, higher expenses remained a headwind for BEN.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. 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(KKR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks