Blue Owl reported fourth-quarter results that topped Wall Street expectations and announced a 22% increase in assets under management, lifting AUM beyond the $300 billion mark. The stock reacted positively in early trading, rising about 2% in premarket activity.
Management attributed the strong performance to momentum across the firm’s credit and real assets platforms. Those businesses helped drive the AUM advance even as investors have grown cautious about the broader industry’s exposure to the software sector, where private credit lenders have extended loans.
Market moves have underscored those concerns: more than $800 billion has been erased from the market capitalization of the S&P 500 software and services index since January 28, as investors reassess whether artificial intelligence remains a supportive force for companies in that segment or has become a source of disruption.
Blue Owl’s share price has experienced significant volatility this year. The stock is down about 19% year-to-date in 2026. The shares previously plunged nearly 36% following a late-2025 plan to merge two of the firm’s private credit funds - a proposal that was subsequently dropped. In response to that episode, co-President Craig Packer said at the time,
"There’s no emergency here, the fund continues to perform well."
Fundraising activity remained a bright spot in the quarter. Blue Owl secured $17.3 billion in new capital commitments and recorded $12 billion in total equity fundraising. Demand for private credit persisted despite the backdrop of investor concern, with borrowers increasingly turning to direct lenders for flexible financing as traditional loan markets tighten.
Blue Owl’s businesses primarily invest in private credit, real estate and infrastructure assets, offering institutional and high-net-worth clients avenues to seek higher returns and diversification outside public markets.
On a reported adjusted basis, fee-related earnings per share rose to $0.27 for the quarter ended December 31, up from $0.23 a year earlier. Adjusted distributable earnings per share increased to $0.24 from $0.21 in the prior comparable period. Analysts had been expecting adjusted distributable earnings per share of $0.22, according to estimates compiled by LSEG.
Investors and market participants will likely continue to balance the firm’s fundraising and AUM growth against broader market volatility and sector-specific shocks, particularly in areas where private credit exposure intersects with technology companies. For now, the company’s quarterly results show continued operational momentum in its core alternative asset platforms.