Carlyle shares fall 6.5% despite Q3 profit topping estimate

Carlyle (CG) shares fell 6.5% at 3:59 p.m. ET, from a $42.75 close. The company reported third-quarter 2026 distributable earnings of $1.12 per share. Segment revenue of $994.5 million was in line with the $987.54 million consensus revenue estimate.

Distributable earnings were $432.5 million, up from $368.4 million a year earlier. On a GAAP basis, net loss attributable to The Carlyle Group Inc. was $7.7 million, or $0.02 per diluted share, against a profit of $0.9 million a year earlier.

Here's how the company did:

• Distributable earnings per share: $1.12 vs. $0.96 a year earlier, against the $1.03 consensus estimate
• Segment revenue: $994.5 million vs. $782.5 million a year earlier
• GAAP total revenues: $334.1 million vs. $332.7 million a year earlier
• GAAP loss before income taxes: $77 million vs. income of $85.8 million a year earlier

Fee Related Earnings fell 6% from a year earlier, to $292.6 million, and the fee-related margin was 47%, down from 48%.

Segment and fee trends

Realized performance revenues were $286.0 million, against $61.7 million a year earlier. Fund management fees on a GAAP basis were $555.4 million, down from $583.3 million.

Total assets under management were $479 billion at September 30, 2026, up 1% from a year earlier. Fee-earning assets under management were $330 billion, down 1%. Inflows were $10.8 billion in the quarter, and deployment was $11.0 billion.

Capital returns

The Board of Directors declared a quarterly dividend of 35 cents per common share, payable November 23, 2026, to holders of record on November 16, 2026.

The company repurchased or withheld 4.5 million shares in the quarter, totaling $210 million. As of September 30, 2026, $1.4 billion of repurchase capacity remained under the $2.0 billion authorization.

Investments and charges

Net accrued performance revenues were $2.1 billion at September 30, 2026, down 12% from the prior quarter.

Consolidated funds recorded unrealized investment losses of about $82 million year to date on an investment in a consolidated infrastructure fund in Global Private Equity. The cumulative unrealized loss attributable to it, about $222 million, is expected to be realized in the fourth quarter of 2026, when the fund's investment is disposed of.