Apollo Global Management Inc: Growth Flywheel Accelerates; Reiterate OW

Research evidence excerpt

M

Idea

August 5, 2026 04:01 AM GMT

Apollo Global Management Inc | North America

Morgan Stanley & Co. LLC

Michael J. Cyprys, CFA, CPA

Equity Analyst

Growth Flywheel Accelerates;

Reiterate OW

Joseph Tumillo, CFA

Research Associate

Apollo Global Management Inc (APO.N, APO UN)

We believe APO's earnings growth remains underappreciated.

Strong origination, fundraising and embedded fee growth

support high teens EPS CAGR through 2028. With mgmt

reiterating 20%+ FRE and 10%+ SRE growth for 2026, we see

attractive risk/reward. OW, PT $164 (26% upside)..

Key Takeaways

The 2Q26 headline EPS miss was driven primarily by lower PII, while FRE beat

and SRE strength underscore continued growth in APO’s core earnings streams.

Capital formation better than expected with inflows at $60b (vs $50b est) and

management expecting a record year for the institutional channel.

Strong origination pipeline, expanded distribution, and scaling Capital Solutions

bolsters Apollo's flywheel, providing upside to FRE growth trajectory.

Brokers, Asset Managers & Exchanges | United States of

America

Stock Rating

Industry View

Price target

Shr price, close (Aug 4, 2026)

52-Week Range

Fiscal Year Ending

EPS ($)**

Prior EPS ($)**

ModelWare EPS ($)

Prior ModelWare EPS

($)

EPS ($)§

DPS ($)

Div yld (%)

DPS ($)§

Overweight

In-Line

$164.00

$133.20

$153.29-99.60

12/25 12/26e 12/27e 12/28e

8.39

8.70

8.92

9.59

11.19

12.21

13.01

14.24

7.96

2.04

1.4

2.02

8.89

2.04

1.5

2.09

10.65

2.24

1.7

2.27

12.63

2.47

1.9

2.38

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

§ = Consensus data is provided by Refinitiv Estimates

e = Morgan Stanley Research estimates

Embedded growth underappreciated as record dry powder suggests 10%

embedded mgmt fee growth, providing visibility into future management fee

earnings.

Apollo anticipates its entire credit platform having daily pricing by 10/1, providing

more transparency that can support growth from new capital pools.

Reiterate OW APO. We continue to see a compelling path to sustained earnings

growth, with management reiterating targets for 20%+ FRE growth and 10%+

…