Morningstar

Blue Owl Earnings: No New Bad News Lifts Shares in Intraday Trading

Since the start of the year, private-credit-heavy alternative-asset managers have been among the hardest-hit firms in our coverage.

The Blue Owl Capital logo is seen displayed on a smartphone screen.
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Securities in This Article
Blue Owl Capital Inc Ordinary Shares - Class A
(OWL)

Key Morningstar Metrics for Blue Owl Capital

  • Fair Value Estimate
    : $12.00
  • Morningstar Rating
    : ★★★★
  • Morningstar Economic Moat Rating
    : Narrow
  • Morningstar Uncertainty Rating
    : High

What We Thought of Blue Owl Capital’s Earnings

Blue Owl Capital OWL ended March 2026 with $188.4 billion in fee-earning assets, up 0.4% sequentially and 7.9% year over year. Base management fee revenue increased 13.2% year over year to $675 million in the quarter, while fee-related earnings increased 14.0% to $394 million.

Why it matters: Blue Owl continues to generate positive flows despite rising concerns about private credit, with its mix of alternative products benefiting from ongoing demand for non-traditional investment products.

  • The firm picked up $9.0 billion from fundraising efforts during the first quarter, above its quarterly run rate of $8.7 billion over the previous eight quarters. That said, Blue Owl deployed only $5.5 billion during the period, below its quarterly run rate of $7.5 billion over the past two years.
  • The solid fundraising and ongoing investment activity during the first quarter supported a 15.2% year-over-year increase in total assets under management, to $314.9 billion, and a 7.9% increase in fee-earning AUM to $188.4 billion.
  • Going forward, we expect the negative perceptions currently attached to the private-credit market, and Blue Owl in particular, will be a drag on fundraising and overall results.

The bottom line: We reiterate our $12 per share fair value estimate for narrow-moat-rated Blue Owl, and view the shares as being modestly undervalued, trading at nearly a 25% discount to our valuation.

  • Increased uncertainty about the equity and credit markets tied to fiscal, tariff, and monetary policies, as well as economic growth, and increased concerns about the private credit market (and more recently the segment’s ties to the AI boom) have pressured the share prices of most alternative-asset managers.
  • Since the start of the year, private-credit-heavy alternative-asset managers, like Ares (down close to 30%) and Blue Owl (down just over 30% even with today’s price rally), have been among the hardest-hit firms in our coverage.

Editor’s Note: This analysis was originally published as a stock note by Morningstar Equity Research.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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