AllianceBernstein (NYSE: AB) lifts Q1 profit as net outflows reach $7.1B
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
AllianceBernstein Holding L.P. reported strong first-quarter 2026 results despite a volatile market backdrop. GAAP net income per unit rose to $0.92 from $0.67 a year earlier, and net revenues increased 11.2% to $1.20 billion. GAAP operating income climbed 38.3% to $326.8 million, lifting the operating margin to 26.1%. Adjusted net income per unit grew to $0.83 from $0.80 year over year, though it declined from $0.96 in the prior quarter.
Assets under management ended the quarter at $838.6 billion, up 6.9% from a year earlier but down 3.3% sequentially, with total net outflows of $7.1 billion versus net inflows of $2.4 billion in the prior-year period. Active equity strategies saw $10.9 billion of net outflows, while municipal fixed income generated $3.3 billion of net inflows and alternatives/multi-asset solutions added $3.4 billion. The firm declared a cash distribution of $0.83 per unit, payable on May 21, 2026, to unitholders of record on May 8, 2026.
Positive
- Strong year-over-year earnings growth: GAAP net revenues rose 11.2% to $1.20 billion, GAAP operating income increased 38.3% to $326.8 million, and GAAP net income per unit climbed 37.3% to $0.92 versus 1Q 2025.
- Improved profitability and higher AUM versus prior year: GAAP operating margin expanded from 21.8% to 26.1%, adjusted operating income grew 3.0%, and ending AUM increased 6.9% year over year to $838.6 billion.
Negative
- Net outflows and sequential softness: Total net outflows were $7.1 billion in 1Q 2026 versus net inflows of $2.4 billion a year earlier, and adjusted operating income fell 11.7% sequentially with adjusted EPU down 13.5% from $0.96 to $0.83.
- Pressure in active equity and retail channels: Active equity strategies saw $10.9 billion of net outflows and the retail channel recorded $5.8 billion of net outflows in the quarter, contributing to a 3.3% sequential AUM decline.
Insights
AB delivered strong year-over-year profit growth but faced rising net outflows and softer sequential trends.
AllianceBernstein posted first-quarter 2026 GAAP net revenues of $1.20 billion, up 11.2% year over year, with GAAP operating income up 38.3% to $326.8 million. Margin expansion to 26.1% reflects higher base and performance fees plus lower year-ago non-core costs.
On a non-GAAP basis, adjusted net revenues rose 3.9% and adjusted operating income increased 3.0% versus 1Q 2025, but both declined sequentially, with adjusted operating income down 11.7%. Adjusted EPU of $0.83 improved modestly from $0.80 a year ago, yet fell from $0.96 in 4Q 2025, showing some normalization after a stronger prior quarter.
AUM ended at $838.6 billion, up 6.9% year over year, helped by markets, but down 3.3% from year-end as total net outflows reached $7.1 billion. Active equity outflows of $10.9 billion weighed on growth, partly offset by municipal fixed income inflows of $3.3 billion and alternatives/multi-asset inflows of $3.4 billion. The institutional pipeline AUM of $27.5 billion, described as highest on record, indicates potential future funding, though timing and ultimate funding amounts are not assured.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
GAAP net revenues: $1.20 billion
GAAP operating income: $326.8 million
GAAP net income per unit: $0.92
+5 more
8 metrics
GAAP net revenues
$1.20 billion
1Q 2026, up 11.2% vs 1Q 2025
GAAP operating income
$326.8 million
1Q 2026, up 38.3% vs 1Q 2025
GAAP net income per unit
$0.92
1Q 2026, vs $0.67 in 1Q 2025
Adjusted net income per unit
$0.83
1Q 2026, vs $0.80 in 1Q 2025 and $0.96 in 4Q 2025
Assets under management
$838.6 billion
Ending AUM 3/31/2026, up 6.9% year over year
Total net flows
-$7.1 billion
Three months ended 3/31/2026, vs +$2.4 billion prior-year quarter
Cash distribution per unit
$0.83
1Q 2026 distribution, up from $0.80 in 1Q 2025
Active equity net flows
-$10.9 billion
Three months ended 3/31/2026 across channels
Key Terms
adjusted operating income, non-GAAP financial measures, Available Cash Flow, equity method investments, +2 more
6 terms
adjusted operating income financial
"Adjusted operating income of $291 million increased 3% from $283 million"
Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.
non-GAAP financial measures financial
"The adjusted financial measures represent non-GAAP financial measures."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Available Cash Flow financial
"AB Holding is required to distribute all of its Available Cash Flow, as defined in the AB Holding Partnership Agreement"
Available cash flow is the amount of cash a business generates from its operations after paying routine expenses and making necessary investments, and after meeting required debt payments; think of it as the money left in your wallet after paying bills and setting aside what you need to keep the house running. Investors care because it shows how much real cash a company has to pay dividends, buy back shares, reduce debt or invest in growth — signals about financial health that accounting profit can hide.
equity method investments financial
"we exclude our portion of the equity income or loss associated with our equity method investments"
An equity method investment is an accounting approach used when a company owns a significant share of another company and can influence its decisions but does not fully control it; instead of listing the investment at cost, the investor records its share of the other company's profits or losses on its own income statement and adjusts the investment value on the balance sheet. For investors, this matters because it links the investor’s reported earnings and asset values directly to the financial performance of that partly-owned business, similar to how a partner’s gains affect a small business owner’s books.
pass through adjustments financial
"We adjust investment advisory and services fees and other revenues for pass through costs"
operating margin financial
"the operating margin of 26.1% in the first quarter of 2026 increased 430 basis points"
Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.
Earnings Snapshot
GAAP net revenues: $1.20 billion
Q1 2026
GAAP net revenues
$1.20 billion
+11.2% YoY
GAAP operating income
$326.8 million
+38.3% YoY
GAAP net income per unit
$0.92
+37.3% YoY
Adjusted net revenues
$871 million
+3.9% YoY
Adjusted operating income
$291 million
+3.0% YoY
Adjusted net income per unit
$0.83
+3.7% YoY
Ending AUM
$838.6 billion
+6.9% YoY
Total net flows
-$7.1 billion
vs +$2.4 billion prior-year quarter
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 28, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of principal executive offices)
(Zip Code)
(615 ) 622-0000
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on which Registered | ||||||
Item 2.02. Results of Operations and Financial Condition.
AllianceBernstein L.P. and AllianceBernstein Holding L.P. (collectively, “AB”) are furnishing their news release issued on April 28, 2026 announcing financial and operating results for the quarter ended March 31, 2026 (the “1Q26 Release”). The 1Q26 Release is attached hereto as Exhibit 99.01.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
99.01 1Q26 Release.
These exhibits are furnished pursuant to Item 2.02 hereof and should not be deemed to be "filed" under the Securities Exchange Act of 1934.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
ALLIANCEBERNSTEIN HOLDING L.P. | |||||||||||
| Dated: April 28, 2026 | By: | /s/ Mark Manley | |||||||||
| Mark Manley Corporate Secretary | |||||||||||
 | Ioanis Jorgali, Investors 629.213.6139 ioanis.jorgali@alliancebernstein.com | Carly Symington, Media 629.213.5568 carly.symington@alliancebernstein.com | ||||||
ALLIANCEBERNSTEIN HOLDING L.P. ANNOUNCES FIRST QUARTER RESULTS
GAAP Net Income of $0.92 per Unit
Adjusted Net Income of $0.83 per Unit
Cash Distribution of $0.83 per Unit
Nashville, TN, April 28, 2026 - AllianceBernstein L.P. (“AB”) and AllianceBernstein Holding L.P. (“AB Holding”) (NYSE: AB) today reported financial and operating results for the quarter ended March 31, 2026.
“The first quarter of 2026 unfolded against a difficult geopolitical backdrop associated with market volatility," said Seth Bernstein, CEO of AllianceBernstein. "Firmwide net active outflows totaled $6.3 billion, reflecting a more risk-averse environment, despite continued momentum across structurally growing areas—including private markets, active ETFs, SMAs, insurance, and wealth management. Active equity outflows remained elevated at $10.9 billion across channels, primarily within growth-oriented US strategies. Our market‑leading municipal franchise continued to demonstrate its income‑oriented appeal, supported by strong high-net-worth demand, generating $3.3 billion net inflows in the quarter. Taxable fixed income demand diverged by channel and region, with institutional net inflows more than offset by APAC retail net outflows, resulting in $1.7 billion net outflows. Alternatives/multi-asset strategies recorded $3.4 billion net inflows, reflecting continued institutional deployments into private markets and customized retirement solutions, along with multi-asset retail inflows. Compared to prior year, average AUM and advisory base fees grew 8% and 5%, respectively. Adjusted operating income increased 3% and adjusted earnings per Unit and distributions to Unitholders rose 4%."
| (US $ Thousands except per Unit amounts) | 1Q 2026 | 1Q 2025 | % Change | 4Q 2025 | % Change | ||||||||||||||||||||||||
| U.S. GAAP Financial Measures | |||||||||||||||||||||||||||||
| Net revenues | $ | 1,201,726 | $ | 1,080,607 | 11.2 | % | $ | 1,223,991 | (1.8 | %) | |||||||||||||||||||
| Operating income | $ | 326,800 | $ | 236,369 | 38.3 | % | $ | 308,534 | 5.9 | % | |||||||||||||||||||
| Operating margin | 26.1 | % | 21.8 | % | 430 bps | 25.1 | % | 100 bps | |||||||||||||||||||||
| AB Holding EPU | $ | 0.92 | $ | 0.67 | 37.3 | % | $ | 0.90 | 2.2 | % | |||||||||||||||||||
Adjusted Financial Measures (1) | |||||||||||||||||||||||||||||
| Net revenues | $ | 871,135 | $ | 838,214 | 3.9 | % | $ | 957,307 | (9.0 | %) | |||||||||||||||||||
| Operating income | $ | 291,180 | $ | 282,748 | 3.0 | % | $ | 329,947 | (11.7 | %) | |||||||||||||||||||
| Operating margin | 33.4 | % | 33.7 | % | (30 bps) | 34.5 | % | (110 bps) | |||||||||||||||||||||
| AB Holding EPU | $ | 0.83 | $ | 0.80 | 3.7 | % | $ | 0.96 | (13.5 | %) | |||||||||||||||||||
| AB Holding cash distribution per Unit | $ | 0.83 | $ | 0.80 | 3.7 | % | $ | 0.96 | (13.5 | %) | |||||||||||||||||||
| (US $ Billions) | |||||||||||||||||||||||||||||
| Assets Under Management ("AUM") | |||||||||||||||||||||||||||||
| Ending AUM | $ | 838.6 | $ | 784.5 | 6.9 | % | $ | 866.9 | (3.3 | %) | |||||||||||||||||||
| Average AUM | $ | 865.0 | $ | 797.5 | 8.5 | % | $ | 865.1 | — | % | |||||||||||||||||||
(1) The adjusted financial measures represent non-GAAP financial measures. See page 11 for reconciliations of GAAP Financial Results to Adjusted Financial Results and pages 12-14 for notes describing the adjustments.
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Bernstein further elaborated, “Retail engagement remained selective in the first quarter of 2026, reflecting continued active equity redemptions of $4.3 billion, partially offset by ongoing market‑share gains in our municipal platform, which generated $3.2 billion of net inflows. Taxable fixed‑income outflows totaled $4.5 billion, concentrated in American Income and Global High Yield. Retail alternatives/MAS recorded $0.9 billion of net inflows, driven by the continued expansion of our multi‑asset offerings within APAC. Institutional activity was largely constructive outside of active equities, where we registered $5.1 billion of outflows. A steady cadence of private‑market deployments coupled with inflows into our defined‑contribution platform, resulted in $1.6 billion alternatives/multi-asset inflows during the first quarter. Institutional taxable fixed income also generated $2.3 billion inflows. Institutional client engagement was strong, with our pipeline AUM surpassing $27 billion, highest on record, supported by expanding insurance partnerships and deepening existing client relationships. Bernstein Private Wealth continued to deliver strong growth, with net new assets increasing at 5% annualized rate including $0.6 billion of organic inflows across asset classes. Advisor productivity and client engagement remained strong, marking the third consecutive quarter of positive flows and driving deeper penetration across the ultra‑high‑net‑worth channel."
In conclusion, Bernstein remarked, “Market volatility is elevated as investors recalibrate risk exposure against a backdrop of slower growth, unsettled inflationary pressures, and ongoing geopolitical instability. Our long‑term perspective, differentiated investment capabilities, and deep client partnerships position us well to navigate the evolving environment. We are focused on delivering high‑quality investment outcomes, executing against our strategic priorities, and creating durable value for our clients, unitholders, and stakeholders.”
The firm’s cash distribution per Unit of $0.83 is payable on May 21, 2026, to holders of record of AB Holding Units at the close of business on May 8, 2026.
Market Performance
Global equity and fixed income markets were mostly down in the first quarter of 2026.
| 1Q 2026 | |||||
| S&P 500 Total Return | (4.3)% | ||||
| MSCI EAFE Total Return | (1.1) | ||||
| Bloomberg Barclays US Aggregate Return | (0.1) | ||||
| Bloomberg Barclays Global High Yield Index - Hedged | (0.9) | ||||
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Assets Under Management
($ Billions)
Total assets under management as of March 31, 2026 were $838.6 billion, down $28.3 billion, or 3%, from December 31, 2025 and up $54.1 billion, or 7%, from March 31, 2025.
| Institutional | Retail | Private Wealth | Total | |||||||||||||||||||||||
Assets Under Management 3/31/2026 | $347.7 | $335.5 | $155.4 | $838.6 | ||||||||||||||||||||||
Net Flows for Three Months Ended 3/31/2026: | ||||||||||||||||||||||||||
| Active | ($1.2) | ($4.7) | ($0.4) | ($6.3) | ||||||||||||||||||||||
| Passive | (0.7) | (1.1) | 1.0 | (0.8) | ||||||||||||||||||||||
| Total | ($1.9) | ($5.8) | $0.6 | ($7.1) | ||||||||||||||||||||||
Total net outflows were $7.1 billion in the first quarter, compared to net outflows of $4.7 billion in the fourth quarter of 2025 and net inflows of $2.4 billion in the prior year first quarter.
Institutional channel first quarter net outflows of $1.9 billion compared to net outflows of $1.9 billion in the fourth quarter of 2025. Institutional gross sales of $5.6 billion increased sequentially from $4.5 billion. The pipeline of awarded but unfunded Institutional mandates increased sequentially to $27.5 billion at March 31, 2026 compared to $19.7 billion at December 31, 2025.
Retail channel first quarter net outflows of $5.8 billion compared to net outflows of $3.5 billion in the fourth quarter of 2025. Retail gross sales of $23.1 billion increased sequentially from $22.5 billion.
Private Wealth channel first quarter net inflows of $0.6 billion compared to net inflows of $0.7 billion in the fourth quarter of 2025. Private Wealth gross sales of $6.9 billion increased sequentially from $6.7 billion.
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First Quarter Financial Results
We are presenting both earnings information derived in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and non-GAAP, adjusted earnings information in this release. Management principally uses these non-GAAP financial measures in evaluating performance because we believe they present a clearer picture of our operating performance and allow management to see long-term trends without the distortion caused by incentive compensation-related mark-to-market adjustments, acquisition-related expenses, interest expense and other adjustment items. Similarly, we believe that non-GAAP earnings information helps investors better understand the underlying trends in our results and, accordingly, provides a valuable perspective for investors. Please note, however, that these non-GAAP measures are provided in addition to, and not as a substitute for, any measures derived in accordance with US GAAP and they may not be comparable to non-GAAP measures presented by other companies. Management uses both US GAAP and non-GAAP measures in evaluating our financial performance. The non-GAAP measures alone may pose limitations because they do not include all of our revenues and expenses.
AB Holding is required to distribute all of its Available Cash Flow, as defined in the AB Holding Partnership Agreement, to its Unitholders (including the General Partner). Available Cash Flow typically is the adjusted net income per unit for the quarter multiplied by the number of units outstanding at the end of the quarter. Management anticipates that Available Cash Flow will continue to be based on adjusted net income per unit, unless management determines, with concurrence of the Board of Directors, that one or more adjustments made to adjusted net income should not be made with respect to the Available Cash Flow calculation.
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US GAAP Earnings
Revenues
First quarter net revenues of $1.2 billion increased 11% from $1.1 billion in the first quarter of 2025. The increase was primarily due to investment gains as compared to losses in the prior year, higher investment advisory base fees, higher performance-based fees and higher shareholder servicing fees.
Sequentially, net revenues of $1.2 billion decreased 2% from the fourth quarter of 2025. The slight decrease was primarily due to lower investment advisory base fees and lower performance-based fees and lower distribution revenue, partially offset by higher investment gains.
Expenses
First quarter operating expenses of $875 million increased 4% from $844 million in the first quarter of 2025. The increase is primarily due to higher employee compensation and benefits expense, partially offset by lower general and administrative ("G&A") expense. Employee compensation and benefits expense increased due to higher incentive compensation, commissions, fringe benefits and base compensation. The decrease in G&A expenses is driven by a retirement plan settlement loss of $20.8 million in the prior year quarter, partially offset by higher office-related expenses and professional fees.
Sequentially, operating expenses of $875 million decreased 4% from $915 million, driven primarily by lower promotion and servicing expense, lower G&A expense and lower employee compensation and benefits expense. Promotion and servicing expense decreased primarily due to lower distribution-related payments, lower marketing and communications expense and lower transfer fees. G&A expense decreased primarily due to an impairment charge of $4.0 million in the prior period associated with a smaller historical acquisition in 2020, lower professional fees and lower portfolio services and related expense. Employee compensation and benefits expense decreased primarily due to lower incentive compensation and base compensation, partially offset by higher fringe benefits and commissions.
Operating Income, Margin and Net Income Per Unit
First quarter operating income of $327 million increased 38% from $236 million in the first quarter of 2025 and the operating margin of 26.1% in the first quarter of 2026 increased 430 basis points from 21.8% in the first quarter of 2025.
Sequentially, operating income of $327 million increased 6% from $309 million in the fourth quarter of 2025 and the operating margin of 26.1% increased 100 basis points from 25.1% in the fourth quarter of 2025.
First quarter net income per Unit was $0.92 compared to $0.67 in the first quarter of 2025 and increased from $0.90 in the fourth quarter of 2025.
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Non-GAAP Earnings
This section discusses our first quarter 2026 non-GAAP financial results, compared to the first quarter of 2025 and the fourth quarter of 2025. The phrases “adjusted net revenues”, “adjusted operating expenses”, “adjusted operating income”, “adjusted operating margin” and “adjusted net income per Unit” are used in the following earnings discussion to identify non-GAAP information.
Adjusted Revenues
First quarter adjusted net revenues of $871 million increased 4% from $838 million in the first quarter of 2025. The increase was primarily due to higher investment advisory base fees, lower investment losses and higher shareholder servicing fees, partially offset by lower performance-based fees.
Sequentially, adjusted net revenues of $871 million decreased 9% from $957 million. The decrease was primarily due to lower performance-based fees, lower investment advisory base fees and investment losses as compared to gains in the prior quarter.
Adjusted Expenses
First quarter adjusted operating expenses of $580 million increased 4% from $555 million in the first quarter of 2025 primarily due to higher employee compensation and benefits expense and higher G&A expense. Employee compensation and benefits expense increased primarily due to higher commissions, fringe benefits and base compensation, partially offset by lower incentive compensation. G&A expense increased primarily due to higher office-related expenses, portfolio services and related expense and professional fees.
Sequentially, adjusted operating expenses of $580 million decreased 8% from $627 million. The decrease was driven primarily by lower employee compensation and benefits expense, lower promotion and servicing expense, and lower G&A expense. Employee compensation and benefits expense decreased primarily due to lower incentive compensation and base compensation, partially offset by higher fringe benefits and commissions. Promotion and servicing expense decreased primarily due to lower marketing and communication expense and lower transfer fees. G&A expense decreased primarily due to lower professional fees, technology and related expense and portfolio services and related expense.
Adjusted operating Income, Margin and Net Income Per Unit
First quarter adjusted operating income of $291 million increased 3% from $283 million in the first quarter of 2025, and the adjusted operating margin of 33.4% decreased 30 basis points from 33.7%.
Sequentially, adjusted operating income of $291 million decreased 12% from $330 million and the adjusted operating margin of 33.4% decreased 110 basis points from 34.5%.
First quarter adjusted net income per Unit was $0.83 compared to $0.80 in the first quarter of 2025 and $0.96 in the fourth quarter of 2025.
Headcount
As of March 31, 2026, we had 4,454 employees, compared to 4,369 employees as of March 31, 2025 and 4,468 employees as of December 31, 2025.
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Unit Repurchases
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| (in millions) | ||||||||||||||
Total amount of AB Holding Units Purchased/Retained (1) | 0.2 | 0.8 | ||||||||||||
Total Cash Paid for AB Holding Units Purchased/Retained (1) | $ | 8.8 | $ | 30.5 | ||||||||||
Open Market Purchases of AB Holding Units Purchased (1) | 0.1 | 0.7 | ||||||||||||
Total Cash Paid for Open Market Purchases of AB Holding Units (1) | $ | 4.7 | $ | 26.1 | ||||||||||
(1) Purchased on a trade date basis. The difference between open-market purchases and units retained reflects the retention of AB Holding Units from employees to fulfill statutory tax withholding requirements at the time of delivery of long-term incentive compensation awards.
First Quarter 2026 Earnings Conference Call Information
Management will review first quarter 2026 financial and operating results during a conference call beginning at 9:00 a.m. (CST) on Tuesday, April 28, 2026. The conference call will be hosted by Seth Bernstein, Chief Executive Officer; Tom Simeone, Chief Financial Officer; and Onur Erzan, President.
Parties may access the conference call by either webcast or telephone:
1. To listen by webcast, please visit AB’s Investor Relations website at https://www.alliancebernstein.com/corporate/en/investor-relations.html at least 15 minutes prior to the call to download and install any necessary audio software.
2. To listen by telephone, please dial (888) 440-3310 in the U.S. or +1 (646) 960-0513 outside the U.S. 10 minutes before the scheduled start time. The conference ID# is 6072615.
The presentation management will review during the conference call will be available on AB’s Investor Relations website shortly after the release of our first quarter 2026 financial and operating results on April 28, 2026.
A replay of the webcast will be made available beginning approximately one hour after the conclusion of the conference call.
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Cautions Regarding Forward-Looking Statements
Certain statements provided by management in this news release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. The most significant of these factors include, but are not limited to, the following: the performance of financial markets, the investment performance of sponsored investment products and separately-managed accounts, general economic conditions, industry trends, future acquisitions, integration of acquired companies, competitive conditions, and government regulations, including changes in tax regulations and rates and the manner in which the earnings of publicly-traded partnerships are taxed. AB cautions readers to carefully consider such factors. Further, such forward-looking statements speak only as of the date on which such statements are made; AB undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. For further information regarding these forward-looking statements and the factors that could cause actual results to differ, see “Risk Factors” and “Cautions Regarding Forward-Looking Statements” in AB’s Form 10-K for the year ended December 31, 2025 and subsequent Forms 10-Q. Any or all of the forward-looking statements made in this news release, Form 10-K, Forms 10-Q, other documents AB files with or furnishes to the SEC, and any other public statements issued by AB, may turn out to be wrong. It is important to remember that other factors besides those listed in “Risk Factors” and “Cautions Regarding Forward-Looking Statements”, and those listed below, could also adversely affect AB’s revenues, financial condition, results of operations and business prospects.
The forward-looking statements referred to in the preceding paragraph include statements regarding:
•The pipeline of new institutional mandates not yet funded: Before they are funded, institutional mandates do not represent legally binding commitments to fund and, accordingly, the possibility exists that not all mandates will be funded in the amounts and at the times currently anticipated, or that mandates ultimately will not be funded.
•The possibility that AB will engage in open market purchases of AB Holding Units for anticipated obligations under our incentive compensation award program: The number of AB Holding Units AB may decide to buy in future periods, if any, for incentive compensation awards depends on various factors, some of which are beyond our control, including the fluctuation in the price of an AB Holding Unit (NYSE: AB) and the availability of cash to make these purchases.
Qualified Tax Notice
This announcement is intended to be a qualified notice under Treasury Regulation §1.1446-4(b)(4). Please note that 100% of AB Holding’s distributions to foreign investors is attributable to income that is effectively connected with a United States trade or business. Accordingly, AB Holding’s distributions to foreign investors are subject to federal income tax withholding at the highest applicable tax rate, 37% effective January 1, 2018.
About AllianceBernstein
AllianceBernstein is a leading global investment management firm that offers high-quality research and diversified investment services to institutional investors, individuals and private wealth clients in major world markets.
As of March 31, 2026, including both the general partnership and limited partnership interests in AllianceBernstein, AllianceBernstein Holding owned approximately 31.4% of AllianceBernstein and Equitable Holdings ("EQH"), directly and through various subsidiaries, owned an approximate 68.0% economic interest in AllianceBernstein.
Additional information about AllianceBernstein may be found on our website, www.alliancebernstein.com.
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| AB (The Operating Partnership) | |||||||||||||||||||||||||||||
| US GAAP Consolidated Statement of Income (Unaudited) | |||||||||||||||||||||||||||||
| (US $ Thousands) | 1Q 2026 | 1Q 2025 | % Change | 4Q 2025 | % Change | ||||||||||||||||||||||||
| GAAP revenues: | |||||||||||||||||||||||||||||
| Base fees | $ | 849,182 | $ | 817,866 | 3.8% | $ | 870,809 | (2.5)% | |||||||||||||||||||||
| Performance fees | 66,032 | 37,246 | 77.3 | 87,374 | (24.4) | ||||||||||||||||||||||||
| Distribution revenues | 202,818 | 199,020 | 1.9 | 210,400 | (3.6) | ||||||||||||||||||||||||
| Dividends and interest | 30,470 | 34,350 | (11.3) | 33,936 | (10.2) | ||||||||||||||||||||||||
| Investments gains (losses) | 31,059 | (20,538) | n/m | 238 | n/m | ||||||||||||||||||||||||
| Other revenues | 35,170 | 30,180 | 16.5 | 35,848 | (1.9) | ||||||||||||||||||||||||
| Total revenues | 1,214,731 | 1,098,124 | 10.6 | 1,238,605 | (1.9) | ||||||||||||||||||||||||
| Less: Broker-dealer related interest expense | 13,005 | 17,517 | (25.8) | 14,614 | (11.0) | ||||||||||||||||||||||||
| Total net revenues | 1,201,726 | 1,080,607 | 11.2 | 1,223,991 | (1.8) | ||||||||||||||||||||||||
| GAAP operating expenses: | |||||||||||||||||||||||||||||
| Employee compensation and benefits | 467,557 | 420,531 | 11.2 | 479,574 | (2.5) | ||||||||||||||||||||||||
| Promotion and servicing | |||||||||||||||||||||||||||||
| Distribution-related payments | 196,596 | 200,659 | (2.0) | 206,574 | (4.8) | ||||||||||||||||||||||||
| Amortization of deferred sales commissions | 21,495 | 20,161 | 6.6 | 21,331 | 0.8 | ||||||||||||||||||||||||
| Trade execution, marketing, T&E and other | 40,517 | 36,513 | 11.0 | 48,372 | (16.2) | ||||||||||||||||||||||||
| General and administrative | 130,391 | 147,935 | (11.9) | 142,875 | (8.7) | ||||||||||||||||||||||||
| Interest on borrowings | 7,207 | 7,138 | 1.0 | 5,503 | 31.0 | ||||||||||||||||||||||||
| Amortization of intangible assets | 11,163 | 11,301 | (1.2) | 11,228 | (0.6) | ||||||||||||||||||||||||
| Total operating expenses | 874,926 | 844,238 | 3.6 | 915,457 | (4.4) | ||||||||||||||||||||||||
| Operating income | 326,800 | 236,369 | 38.3 | 308,534 | 5.9 | ||||||||||||||||||||||||
| Income taxes | 18,164 | 14,675 | 23.8 | 15,033 | 20.8 | ||||||||||||||||||||||||
| Net income | 308,636 | 221,694 | 39.2 | 293,501 | 5.2 | ||||||||||||||||||||||||
| Net income of consolidated entities attributable to non-controlling interests | 13,151 | 895 | n/m | 1,541 | n/m | ||||||||||||||||||||||||
| Net income attributable to AB Unitholders | $ | 295,485 | $ | 220,799 | 33.8% | $ | 291,960 | 1.2% | |||||||||||||||||||||
| AB Holding L.P. (The Publicly-Traded Partnership) | |||||||||||||||||||||||||||||
| SUMMARY STATEMENTS OF INCOME | |||||||||||||||||||||||||||||
| (US $ Thousands) | 1Q 2026 | 1Q 2025 | % Change | 4Q 2025 | % Change | ||||||||||||||||||||||||
| Equity in Net Income Attributable to AB Unitholders | $ | 92,255 | $ | 82,753 | 11.5 | % | $ | 89,761 | 2.8 | % | |||||||||||||||||||
| Income Taxes | 7,017 | 8,719 | (19.5) | 7,957 | (11.8) | ||||||||||||||||||||||||
| Net Income | $ | 85,238 | $ | 74,034 | 15.1 | % | $ | 81,804 | 4.2 | % | |||||||||||||||||||
| Net Income per Unit | $ | 0.92 | $ | 0.67 | 37.3 | % | $ | 0.90 | 2.2 | % | |||||||||||||||||||
| Distribution per Unit | $ | 0.83 | $ | 0.80 | 3.7 | % | $ | 0.96 | (13.5) | % | |||||||||||||||||||
| Units Outstanding | 1Q 2026 | 1Q 2025 | % Change | 4Q 2025 | % Change | ||||||||||||||||||||||||
| AB L.P. | |||||||||||||||||||||||||||||
| Period-end | 294,626,407 | 292,273,197 | 0.8 | % | 293,508,421 | 0.4 | % | ||||||||||||||||||||||
| Weighted average | 293,728,550 | 292,187,179 | 0.5 | 291,888,777 | 0.6 | ||||||||||||||||||||||||
| AB Holding L.P. | |||||||||||||||||||||||||||||
| Period-end | 93,403,853 | 110,699,699 | (15.6 | %) | 92,284,367 | 1.2 | % | ||||||||||||||||||||||
| Weighted average | 92,505,013 | 110,611,006 | (16.4) | 90,664,000 | 2.0 | ||||||||||||||||||||||||
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| AllianceBernstein L.P. | ||||||||||||||
| ASSETS UNDER MANAGEMENT | March 31, 2026 | ||||||||||||||
| ($ Billions) | ||||||||||||||
| Ending and Average | Three Months Ended | |||||||||||||
| 3/31/26 | 3/31/25 | |||||||||||||
| Ending Assets Under Management | $838.6 | $784.5 | ||||||||||||
| Average Assets Under Management | $865.0 | $797.5 | ||||||||||||
| Three-Month Changes By Distribution Channel | ||||||||||||||||||||||||||
| Institutions | Retail | Private Wealth | Total | |||||||||||||||||||||||
| Beginning of Period | $ | 354.2 | $ | 356.4 | $ | 156.3 | $ | 866.9 | ||||||||||||||||||
| Sales/New accounts | 5.6 | 23.1 | 6.9 | 35.6 | ||||||||||||||||||||||
| Redemption/Terminations | (3.2) | (26.3) | (6.3) | (35.8) | ||||||||||||||||||||||
| Net Cash Flows | (4.3) | (2.6) | — | (6.9) | ||||||||||||||||||||||
| Net Flows | (1.9) | (5.8) | 0.6 | (7.1) | ||||||||||||||||||||||
| Transfers | 0.4 | (0.4) | — | — | ||||||||||||||||||||||
| Investment Performance | (5.0) | (14.7) | (1.5) | (21.2) | ||||||||||||||||||||||
| End of Period | $ | 347.7 | $ | 335.5 | $ | 155.4 | $ | 838.6 | ||||||||||||||||||
| Three-Month Changes By Investment Service | ||||||||||||||||||||||||||||||||||||||||||||
| Equity Active | Equity Passive(1) | Fixed Income Taxable | Fixed Income Tax-Exempt | Fixed Income Passive(1) | Alternatives/ Multi-Asset Solutions(2) | Total | ||||||||||||||||||||||||||||||||||||||
| Beginning of Period | $ | 278.0 | $ | 78.3 | $ | 213.1 | $ | 90.8 | $ | 9.7 | $ | 197.0 | $ | 866.9 | ||||||||||||||||||||||||||||||
| Sales/New accounts | 11.9 | 0.5 | 10.4 | 7.1 | — | 5.7 | 35.6 | |||||||||||||||||||||||||||||||||||||
| Redemption/Terminations | (17.6) | (0.6) | (11.9) | (3.7) | (0.1) | (1.9) | (35.8) | |||||||||||||||||||||||||||||||||||||
| Net Cash Flows | (5.2) | (0.8) | (0.2) | (0.1) | (0.2) | (0.4) | (6.9) | |||||||||||||||||||||||||||||||||||||
| Net Flows | (10.9) | (0.9) | (1.7) | 3.3 | (0.3) | 3.4 | (7.1) | |||||||||||||||||||||||||||||||||||||
| Investment Performance | (14.6) | (2.7) | (1.7) | (0.2) | — | (2.0) | (21.2) | |||||||||||||||||||||||||||||||||||||
| End of Period | $ | 252.5 | $ | 74.7 | $ | 209.7 | $ | 93.9 | $ | 9.4 | $ | 198.4 | $ | 838.6 | ||||||||||||||||||||||||||||||
| Three-Month Net Flows By Investment Service (Active versus Passive) | ||||||||||||||||||||
| Actively Managed | Passively Managed (1) | Total | ||||||||||||||||||
| Equity | $ | (10.9) | (0.9) | $ | (11.8) | |||||||||||||||
| Fixed Income | 1.6 | (0.3) | 1.3 | |||||||||||||||||
Alternatives/Multi-Asset Solutions (2) | 3.0 | 0.4 | 3.4 | |||||||||||||||||
| Total | $ | (6.3) | $ | (0.8) | $ | (7.1) | ||||||||||||||
(1) Includes index and enhanced index services.
(2) Includes certain multi-asset solutions and services not included in equity or fixed income services.
| By Client Domicile | ||||||||||||||||||||||||||
| Institutions | Retail | Private Wealth | Total | |||||||||||||||||||||||
| U.S. Clients | $ | 277.0 | $ | 208.4 | $ | 151.7 | $ | 637.1 | ||||||||||||||||||
| Non-U.S. Clients | 70.7 | 127.1 | 3.7 | 201.5 | ||||||||||||||||||||||
| Total | $ | 347.7 | $ | 335.5 | $ | 155.4 | $ | 838.6 | ||||||||||||||||||
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| AB L.P. | |||||||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF GAAP FINANCIAL RESULTS TO ADJUSTED FINANCIAL RESULTS | |||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| (US $ Thousands, unaudited) | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | |||||||||||||||||||||||||||||||||||||||||
| Net Revenues, GAAP basis | $ | 1,201,726 | $ | 1,223,991 | $ | 1,137,147 | $ | 1,088,907 | $ | 1,080,607 | $ | 1,257,556 | |||||||||||||||||||||||||||||||||||
| Exclude: | |||||||||||||||||||||||||||||||||||||||||||||||
| Distribution-related adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
| Distribution revenues | (202,818) | (210,400) | (210,658) | (198,367) | (199,020) | (198,859) | |||||||||||||||||||||||||||||||||||||||||
| Investment advisory services fees | (15,274) | (17,494) | (18,642) | (20,297) | (21,796) | (16,281) | |||||||||||||||||||||||||||||||||||||||||
| Pass through adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
| Investment advisory services fees | (14,816) | (17,680) | (13,970) | (13,659) | (12,756) | (42,364) | |||||||||||||||||||||||||||||||||||||||||
| Other revenues | (15,686) | (17,510) | (15,433) | (15,203) | (15,835) | (18,742) | |||||||||||||||||||||||||||||||||||||||||
| Impact of consolidated company-sponsored investment funds | 3,500 | (1,886) | (7,059) | 2,295 | 85 | (1,126) | |||||||||||||||||||||||||||||||||||||||||
| Acquisition related investment advisory and services fees | (42,990) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Incentive compensation-related items | 485 | (1,059) | (2,404) | (9,821) | 856 | (8,058) | |||||||||||||||||||||||||||||||||||||||||
| Equity (gain) loss on JV | (48,396) | 3,450 | 16,162 | 13,371 | 6,073 | 1,168 | |||||||||||||||||||||||||||||||||||||||||
| Loss (gain) on other equity method investments | 5,404 | (4,105) | (471) | (2,792) | — | — | |||||||||||||||||||||||||||||||||||||||||
| Adjusted Net Revenues | $ | 871,135 | $ | 957,307 | $ | 884,672 | $ | 844,434 | $ | 838,214 | $ | 973,294 | |||||||||||||||||||||||||||||||||||
| Operating Income, GAAP basis | $ | 326,800 | $ | 308,534 | $ | 283,477 | $ | 222,094 | $ | 236,369 | $ | 317,507 | |||||||||||||||||||||||||||||||||||
| Exclude: | |||||||||||||||||||||||||||||||||||||||||||||||
| Real estate | — | — | — | — | — | (206) | |||||||||||||||||||||||||||||||||||||||||
| Incentive compensation-related items | 146 | (554) | 1,214 | 1,284 | 258 | (198) | |||||||||||||||||||||||||||||||||||||||||
| EQH award compensation | 405 | 229 | 344 | 426 | 246 | 291 | |||||||||||||||||||||||||||||||||||||||||
| Retirement plan settlement (gain) loss | — | — | (2,442) | (581) | 20,756 | 13,130 | |||||||||||||||||||||||||||||||||||||||||
| Acquisition-related expenses | 12,765 | 18,431 | 12,545 | 13,224 | 12,803 | 19,292 | |||||||||||||||||||||||||||||||||||||||||
| Equity (gain) loss on JVs | (48,396) | 3,450 | 16,162 | 13,371 | 6,073 | 1,168 | |||||||||||||||||||||||||||||||||||||||||
| Loss (gain) on other equity method investments | 5,404 | (4,105) | (471) | (2,792) | — | — | |||||||||||||||||||||||||||||||||||||||||
| AB Funds reimbursement (income) expense | — | — | (8,500) | 14,296 | — | — | |||||||||||||||||||||||||||||||||||||||||
| Interest on borrowings | 7,207 | 5,503 | 7,167 | 8,463 | 7,138 | 6,370 | |||||||||||||||||||||||||||||||||||||||||
| Total non-GAAP adjustments | (22,469) | 22,954 | 26,019 | 47,691 | 47,274 | 39,847 | |||||||||||||||||||||||||||||||||||||||||
| Less: Net income (loss) of consolidated entities attributable to non-controlling interests | 13,151 | 1,541 | 7,129 | (3,179) | 895 | 2,975 | |||||||||||||||||||||||||||||||||||||||||
| Adjusted Operating Income | $ | 291,180 | $ | 329,947 | $ | 302,367 | $ | 272,964 | $ | 282,748 | $ | 354,379 | |||||||||||||||||||||||||||||||||||
| Operating Margin, GAAP basis excl. non-controlling interests | 26.1 | % | 25.1 | % | 24.3 | % | 20.7 | % | 21.8 | % | 25.0 | % | |||||||||||||||||||||||||||||||||||
| Adjusted Operating Margin | 33.4 | % | 34.5 | % | 34.2 | % | 32.3 | % | 33.7 | % | 36.4 | % | |||||||||||||||||||||||||||||||||||
| AB Holding L.P. | |||||||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF GAAP EPU TO ADJUSTED EPU | |||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
| ($ Thousands except per Unit amounts, unaudited) | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | |||||||||||||||||||||||||||||||||||||||||
| Net Income, GAAP basis | $ | 85,238 | $ | 81,804 | $ | 73,751 | $ | 70,248 | $ | 74,034 | $ | 105,434 | |||||||||||||||||||||||||||||||||||
| Impact on net income of AB non-GAAP adjustments | (8,522) | 5,129 | 5,695 | 13,630 | 14,128 | 12,465 | |||||||||||||||||||||||||||||||||||||||||
| Adjusted Net Income | $ | 76,716 | $ | 86,933 | $ | 79,446 | $ | 83,878 | $ | 88,162 | $ | 117,899 | |||||||||||||||||||||||||||||||||||
| Net Income per Holding Unit, GAAP basis | $ | 0.92 | $ | 0.90 | $ | 0.79 | $ | 0.64 | $ | 0.67 | $ | 0.94 | |||||||||||||||||||||||||||||||||||
| Impact of AB non-GAAP adjustments | (0.09) | 0.06 | 0.07 | 0.12 | 0.13 | 0.11 | |||||||||||||||||||||||||||||||||||||||||
| Adjusted Net Income per Holding Unit | $ | 0.83 | $ | 0.96 | $ | 0.86 | $ | 0.76 | $ | 0.80 | $ | 1.05 | |||||||||||||||||||||||||||||||||||
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AB
Notes to Consolidated Statements of Income and Supplemental Information
(Unaudited)
Adjusted Net Revenues
Net Revenue, as adjusted, is reduced to exclude all of the company's distribution revenues, which are recorded as a separate line item on the consolidated statement of income, as well as a portion of investment advisory services fees received that is used to pay distribution and servicing costs. For certain products, based on the distinct arrangements, certain distribution fees are collected by us and passed through to third-party client intermediaries, while for certain other products, we collect investment advisory services fees and a portion is passed through to third-party client intermediaries. In both arrangements, the third-party client intermediary owns the relationship with the client and is responsible for performing services and distributing the product to the client on our behalf. We believe offsetting distribution revenues and certain investment advisory services fees is useful for our investors and other users of our financial statements because such presentation appropriately reflects the nature of these costs as pass-through payments to third parties that perform functions on behalf of our sponsored mutual funds and/or shareholders of these funds. Distribution-related adjustments fluctuate each period based on the type of investment products sold, as well as the average AUM over the period. Also, we adjust distribution revenues for the amortization of deferred sales commissions as these costs, over time, will offset such revenues.
We adjust investment advisory and services fees and other revenues for pass through costs, primarily related to our transfer agent and shareholder servicing fees. Also, we adjust for certain investment advisory and service fees passed through to our investment advisors. We also adjust for certain pass through costs associated with the transition of services to the JV entered into with Societe Generale ("SocGen"). These amounts are expensed by us and passed to the JV for reimbursement.These fees do not affect operating income, as such, we exclude these fees from adjusted net revenues.
We adjust for the revenue impact of consolidating company-sponsored investment funds by eliminating the consolidated company-sponsored investment funds' revenues and including AB's fees from such consolidated company-sponsored investment funds and AB's investment gains and losses on its investments in such consolidated company-sponsored investment funds that were eliminated in consolidation.
We also adjust investment advisory and services fees for pass through performance fees, primarily related to acquisition-related funds in which we do not participate in the performance.
Adjusted net revenues exclude investment gains and losses and dividends and interest on employee long-term incentive compensation-related investments. Also, we adjust for certain acquisition related pass through performance-based fees and performance related compensation.
We also adjust net revenues to exclude our portion of the equity income or loss associated with our equity method investments, including our investment in the JV and reinsurance sidecars, as we don't consider this activity part of our core business operations and these investments generate non-cash volatility which distort core earnings performance. Effective April 1, 2024 following the close of the transaction with SocGen, we record all income or loss associated with the JV as an equity method investment income (loss). As we no longer consider this activity part of our core business operations and our intent is to fully divest from both joint ventures, we consider these amounts temporary, and as such, we exclude these amounts from our adjusted net revenues. On January 1, 2026, AB entered into an Amended and Restated Shareholder agreement with SocGen (the "Amendment Agreement") and exercised the AB option to deliver a 17.7% interest in the NA JV to SocGen resulting in AB owning a 49% interest in the NA JV and SocGen having a majority interest of 51% in the NA JV. The prepaid consideration received was in excess of the carrying value of the 17.7% equity in the NA JV resulting in a gain of $48.4 million recognized in the first quarter of 2026.
Adjusted Operating Income
Adjusted operating income represents operating income on a US GAAP basis excluding (1) real estate charges (credits), (2) the impact on net revenues and compensation expense of the investment gains and losses (as well as the dividends and interest) associated with employee long-term incentive compensation-
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related investments, (3) the equity compensation paid by EQH to certain AB executives, as discussed below, (4) retirement plan settlement (gain) loss, (5) acquisition-related expenses (income), (6) income (loss) related to our equity method investments, (7) AB Funds reimbursement (income) expense, (8) interest on borrowings and (9) the impact of consolidated company-sponsored investment funds.
Real estate charges (credits) incurred have been excluded because they are not considered part of our core operating results when comparing financial results from period to period and to industry peers. However, beginning in the fourth quarter of 2019, real estate charges (credits), while excluded in the period in which the charges (credits) are recorded, are included ratably over the remaining applicable lease term.
Prior to 2009, a significant portion of employee compensation was in the form of long-term incentive compensation awards that were notionally invested in AB investment services and generally vested over a period of four years. AB economically hedged the exposure to market movements by purchasing and holding these investments on its balance sheet. All such investments had vested as of year-end 2012 and the investments have been delivered to the participants, except for those investments with respect to which the participant elected a long-term deferral. Fluctuation in the value of these investments is recorded within investment gains and losses on the income statement. Management believes it is useful to reflect the offset achieved from economically hedging the market exposure of these investments in the calculation of adjusted operating income and adjusted operating margin. The non-GAAP measures exclude gains and losses and dividends and interest on employee long-term incentive compensation-related investments included in revenues and compensation expense.
The board of directors of EQH granted to Seth P. Bernstein, our CEO, equity awards in connection with EQH's IPO. Additionally, equity awards were granted to Mr. Bernstein and other AB executives for their membership on the EQH Management Committee. These individuals may receive additional equity or cash compensation from EQH in the future related to their service on the Management Committee. Any awards granted to these individuals by EQH are recorded as compensation expense in AB’s consolidated statement of income. The compensation expense associated with these awards has been excluded from our non-GAAP measures because they are non-cash and are based upon EQH's, and not AB's, financial performance.
The (gains) losses associated with the termination of our defined benefit retirement plan are non-cash, short term in nature and not considered a part of our core operating results when comparing financial results from period to period.
Acquisition-related expenses (income) have been excluded because they are not considered part of our core operating results when comparing financial results from period to period and to industry peers. Acquisition-related expenses (income) include professional fees, the recording of changes in estimates or fair value remeasurements to, and accretion expense related to, our contingent payment arrangements associated with our acquisitions, certain compensation-related expenses and amortization of intangible assets for contracts acquired.
We also adjust operating income to exclude exclude our portion of the equity income or loss associated with our equity method investments, including our investment in the JVs and reinsurance sidecars, as we don't consider this activity part of our core business operations and these investments generate non-cash volatility which distort core earnings performance. Effective April 1, 2024 following the close of the transaction with SocGen, we record all income or loss associated with the JVs as an equity method investment income (loss). As we no longer consider this activity part of our core business operations and our intent is to fully divest from both joint ventures, we consider these amounts temporary, and as such, we exclude these amounts from our adjusted operating income. On January 1, 2026, AB entered into an Amended and Restated Shareholder agreement with SocGen (the "Amendment Agreement") and exercised the AB option to deliver a 17.7% interest in the NA JV to SocGen resulting in AB owning a 49% interest in the NA JV and SocGen having a majority interest of 51% in the NA JV. The prepaid consideration received was in excess of the carrying value of the 17.7% equity in the NA JV resulting in a gain of $48.4 million recognized in the first quarter of 2026.
During the first quarter of 2025, we identified an error in the billing practices of a third-party service provider, who had over billed certain AB mutual funds for omnibus account services, sub-accounting services, and related transfer agency expenses in prior years. In the second quarter, at the request of the mutual fund Board, AB agreed to reimburse the affected funds for the entirety of the overpayment plus interest. During the third
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quarter of 2025, we resolved this matter with the service provider and recovered a portion of the overbilled amounts. We have adjusted operating income to exclude these amounts. We believe adjusting for these costs is useful for our investors and other users of our financial statements as such presentation appropriately reflects the non-core nature of this expenditure or recovery.
We adjust operating income to exclude interest on borrowings in order to align with our industry peer group.
We adjusted for the operating income impact of consolidating certain company-sponsored investment funds by eliminating the consolidated company-sponsored funds' revenues and expenses and including AB's revenues and expenses that were eliminated in consolidation. We also excluded the limited partner interests we do not own.
Adjusted Operating Margin
Adjusted operating margin allows us to monitor our financial performance and efficiency from period to period without the volatility noted above in our discussion of adjusted operating income and to compare our performance to industry peers on a basis that better reflects our performance in our core business. Adjusted operating margin is derived by dividing adjusted operating income by adjusted net revenues.
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FAQ
How did AllianceBernstein (AB) perform financially in Q1 2026?
AllianceBernstein reported stronger Q1 2026 results, with GAAP net revenues of $1.20 billion, up 11.2% year over year. GAAP operating income rose 38.3% to $326.8 million, and GAAP net income per unit increased to $0.92 from $0.67 a year earlier.
What were AllianceBernstein’s adjusted earnings and margins in Q1 2026?
Adjusted net revenues reached $871 million, up 3.9% from Q1 2025, while adjusted operating income increased 3.0% to $291 million. The adjusted operating margin was 33.4%, slightly down from 33.7% a year earlier and 34.5% in Q4 2025.
What happened to AllianceBernstein’s assets under management in Q1 2026?
Assets under management ended Q1 2026 at $838.6 billion, up 6.9% from $784.5 billion a year earlier. Sequentially, AUM fell 3.3% from $866.9 billion, reflecting market declines and total net outflows of $7.1 billion during the quarter.
How large were AllianceBernstein’s net flows and which areas saw inflows?
Total net flows in Q1 2026 were -$7.1 billion, compared with net inflows of $2.4 billion a year earlier. Active equity experienced $10.9 billion of outflows, while municipal fixed income generated $3.3 billion of inflows and alternatives/multi-asset solutions added $3.4 billion.
What distribution did AllianceBernstein declare for Q1 2026?
AllianceBernstein declared a Q1 2026 cash distribution of $0.83 per unit, up from $0.80 a year earlier. The distribution is payable on May 21, 2026, to unitholders of record as of the close of business on May 8, 2026.
How did different client channels perform for AllianceBernstein in Q1 2026?
Institutional net outflows were $1.9 billion, retail net outflows totaled $5.8 billion, and private wealth recorded net inflows of $0.6 billion. Institutional gross sales rose to $5.6 billion, while the institutional pipeline AUM reached $27.5 billion.
What were key revenue drivers for AllianceBernstein in Q1 2026?
GAAP revenues of $1.21 billion were driven by higher base fees of $849.2 million, performance fees of $66.0 million, and investment gains of $31.1 million. These factors offset lower dividends and interest and modestly higher operating expenses versus the prior-year quarter.