KKR & Co. Inc. (KKR) Drops 2.92% After Earnings, Profit Disappoints, Sales Miss Estimates

2026-02-05 · Stocks · QuoteReporter

Post Earning Analysis

KKR & Co. Inc. (KKR) Drops 2.92% After Earnings, Profit Disappoints, Sales Miss Estimates

KKR & Co., Inc., founded in 1976 by Henry Kravis, George R. Roberts, and Jerome Kholberg, is a leading global investment firm based in New York. The company specializes in alternative asset management, offering services in private equity, real assets, and credit strategies. Additionally, KKR provides comprehensive capital markets and insurance solutions, including retirement, life insurance, and reinsurance across various client markets.

KKR & Co. Inc. has recently been involved in several substantial transactions that could significantly influence its stock performance. On February 5, 2026, KKR announced a strategic acquisition of Arctos, a pro sports investor, for $1.4 billion, aiming to establish a new platform for sports, GP solutions, and secondaries. This move could diversify KKR’s portfolio and enhance its presence in the sports investment sector.

Additionally, KKR has partnered with Singtel in a major $5.1 billion deal to acquire data centers in Southeast Asia, further expanding into the high-growth area of digital infrastructure. This follows another significant transaction where a KKR-led consortium agreed to fully acquire ST Telemedia Global Data Centres for an enterprise value of S$13.8 billion.

These strategic acquisitions come amidst a broader market context where private equity stocks, including KKR, have experienced volatility due to concerns over AI disruptions in the software industry. However, KKR’s aggressive expansion into digital infrastructure and sports management could provide new revenue streams and growth opportunities, potentially offsetting some of the market’s broader uncertainties.

The current price of the asset at $100.57 reflects a significant downtrend, evidenced by a 2.92% decrease today. The price is considerably below the moving averages (MA20, MA50, MA200), with respective percentage differences of -16.98%, -20.47%, and -21.92%, indicating a strong bearish trend. This is further reinforced by the asset’s substantial depreciation from its 52-week and YTD highs, down by 35% and 40.65%, respectively, although it has recovered somewhat from its 52-week and YTD lows by 17.26%.

The asset’s current proximity to the week’s low ($97.37) compared to the week’s high ($116.08) suggests limited upward momentum in the short term. Technical indicators like the RSI at 20.99 signify oversold conditions, which could hint at a potential rebound or stabilization. However, the negative MACD value (-6.5) underscores the prevailing downward momentum. Overall, the asset is currently facing strong downward pressure with potential for short-term volatility, considering the oversold condition.

KKR & Co. Inc. reported its Q4 2025 financial results on February 5, 2026, showcasing significant revenue growth but a decline in annual performance. The firm’s total revenues for Q4 reached $5.74 billion, marking a 76% increase from $3.26 billion in the same quarter the previous year. However, full-year revenues for 2025 saw an 11% decrease to $19.46 billion from $21.88 billion in 2024. Despite the quarterly revenue surge, net income attributable to KKR in Q4 decreased by 2% to $1.11 billion, and annual net income fell by 27% to $2.25 billion.

Earnings per share (EPS) for Q4 were $1.24, slightly down from $1.27 in Q4 2024, with an annual EPS of $2.51, a 27% decrease from the previous year. Fee-related earnings and total operating earnings showed improvement, with increases of 15% and 17% respectively in Q4, and annual growths of 14% in both metrics.

Assets under management (AUM) expanded to $744 billion, an increase of 17% year-over-year. Fee-paying AUM also grew by 18% to $604 billion. KKR raised a record $129 billion in new capital during FY 2025.

Additionally, KKR announced the acquisition of Arctos Partners and declared a quarterly dividend of $0.185 per share, with an increase in the regular annualized dividend from $0.74 to $0.78 starting from the next quarter.

Earnings Trend Table

The earnings per share (EPS) data over the observed quarters shows a generally positive trend in both estimated and reported EPS, with most quarters experiencing an EPS that either meets or exceeds expectations. Starting from November 2023, there is a clear upward trajectory in both the estimated and reported EPS figures, reflecting an improving financial performance. Notably, the reported EPS consistently surpasses the estimates in six out of the eight reported quarters, indicating robust operational execution or conservative forecasting by analysts.

The most significant positive surprises occur in October 2024, with a 14.13% surprise, and February 2024, with a 9.32% surprise, suggesting particular operational efficiency or external factors benefiting the company during these periods. However, the most recent quarter in February 2026 shows a deviation from this pattern, with reported EPS falling short of the estimate by 1.75%. This might indicate emerging challenges or an adjustment in market conditions affecting the company’s performance.

Overall, the trend suggests strong financial management, with the company generally outperforming analyst expectations, which could be a positive signal to investors regarding the company’s ability to exceed financial forecasts and manage operational risks effectively.

Dividend Payments Table

The dividend data indicates a clear and consistent trend of increasing dividends over the period from early 2024 to late 2025. Starting in February 2024, dividends were recorded at $0.165. Subsequent quarters show a pattern of incremental increases. By May 2024, dividends remained steady at $0.175 and this figure was maintained through to November 2024, suggesting a stable financial approach during these periods.

A notable increment occurred in February 2025 when dividends rose to $0.175 and again to $0.185 by May 2025, maintaining this higher rate through November 2025. This progressive increase could reflect the company’s improved profitability or a strategic decision by management to return more capital to shareholders.

Overall, the data reflects a positive trajectory in dividend payments, illustrating a period of financial growth or a consistent strategy to enhance shareholder value through increased dividend distributions. This trend could potentially attract dividend-focused investors looking for steady and improving income streams.

In the recent series of rating changes, the most notable adjustments include both upgrades and downgrades by prominent financial firms.

1. HSBC Securities on January 28, 2026: HSBC Securities upgraded its rating from “Hold” to “Buy” for Outer, setting a target price of $144. This upgrade suggests a positive shift in HSBC’s outlook on Outer’s financial health and market position, indicating potential for stock performance improvement.

2. TD Cowen on January 14, 2026: Shortly before HSBC’s upgrade, TD Cowen downgraded Outer from “Buy” to “Hold,” with a new target price of $131. This downgrade reflects a more cautious perspective on the company’s near-term growth prospects or market conditions possibly affecting its performance.

3. UBS on December 11, 2025: UBS resumed coverage on Outer with a “Buy” rating and an optimistic target price of $176. This is significantly higher than the other recent ratings and suggests strong confidence in Outer’s market strategy and revenue growth potential.

4. Citizens JMP on July 14, 2025: Citizens JMP downgraded Outer from “Market Outperform” to “Market Perform.” Although no specific target price was provided, this change indicates a neutral stance, suggesting that the firm sees Outer performing in line with the general market expectations without outperforming.

These rating changes reflect a mixed but cautiously optimistic view on Outer, with significant variability in target prices and expectations from different financial analysts, highlighting the complex dynamics affecting the company’s stock valuation.

The current price of the stock is $100.57, which appears to be significantly below the average target price as suggested by recent analyst ratings. HSBC Securities recently upgraded the stock from “Hold” to “Buy,” setting a target price of $144. Similarly, UBS has resumed coverage with a “Buy” rating and a notably higher target price of $176. On the other hand, TD Cowen downgraded the stock from “Buy” to “Hold,” yet still set a target price of $131, indicating potential growth from the current price level. Citizens JMP’s downgrade from “Market Outperform” to “Market Perform” does not specify a target price but suggests a more cautious outlook compared to the other firms.

This disparity in target prices and ratings indicates a mixed but generally positive outlook from analysts, suggesting that while there is caution, there is also a significant upside potential based on the higher target prices from HSBC Securities and UBS.

Disclaimer: The information provided here is for educational and informational purposes only and should not be interpreted as financial advice, investment recommendations, or trading guidance. Markets involve risk, and past performance is not indicative of future results. You should always conduct your own research and consult with a qualified financial advisor before making any investment decisions. By acting, you accept full responsibility for your choices.