Blue Owl Capital (NYSE:OWL) Releases Quarterly Earnings Results, Hits Estimates

Key Points

• Blue Owl Capital reported Q1 EPS of $0.19, meeting expectations, with revenue of $699.9M slightly below estimates, and declared a quarterly dividend of $0.23 (annualized $0.92, ~9.5% yield) while reaffirming its 2026 dividend commitment.
• Fundraising and fee runway remain strong — the firm raised about $57 billion over the last 12 months (≈$11B in Q1) and has roughly $30 billion of AUM not yet paying fees, which management says could generate ~ $350M of annualized fees as deployment accelerates.
• Management disclosed it sold roughly half of its SpaceX stake at a $1.25T valuation, realizing ~10x returns that boost reported performance, but Blue Owl faces legal overhangs (a $414M shareholder suit and an OCIC investigation) and some analyst skepticism after price-target cuts.

Blue Owl Capital (NYSE:OWL - Get Free Report) announced its earnings results on Thursday. The company reported $0.19 earnings per share for the quarter, meeting the consensus estimate of $0.19, FiscalAI reports. Blue Owl Capital had a return on equity of 20.93% and a net margin of 2.75%.The business had revenue of $699.88 million during the quarter, compared to analysts' expectations of $706.59 million.

Here are the key takeaways from Blue Owl Capital's conference call:

• Reported strong quarter: FRE $0.25, DE $0.19, revenues +13% YoY, FRE +14% and DE +11% versus Q1 2025, and declared a $0.23 quarterly dividend while reaffirming a $0.92 dividend commitment for 2026.
• Fundraising momentum remains solid — $57 billion raised over the last 12 months and $11 billion in Q1 — with institutional investors driving ~2/3 of equity and successful closes like the $3 billion BOSE GP Strategic Capital fund.
• Underlying performance and underwriting are resilient: direct lending and credit strategies delivered attractive recent returns (e.g., 8.5% direct lending 12‑month, 9.1% OCIC since inception), with a low average loss rate (~12 bps) and stable watchlist/non‑accrual metrics.
• Deployment runway and fee growth visible — ~$30 billion of AUM not yet paying fees (≈$350 million expected annualized fees), accelerating deployment in real assets and digital infrastructure (large pipelines: ~$50B net lease, ~$100B digital infra) and meaningful originations/repayments activity.
• Retail redemption noise was modest (≈$170 million net outflows from OCIC/OTIC, concentrated among few investors) and management flagged rising software LTVs (low‑30s → low‑40s) but said equity cushions and portfolio behavior remain manageable while they modestly reduce software exposure.

Blue Owl Capital Stock Performance

Shares of NYSE:OWL traded up $0.86 during midday trading on Thursday, reaching $9.74. The company had a trading volume of 71,831,723 shares, compared to its average volume of 28,249,712. Blue Owl Capital has a 1-year low of $7.95 and a 1-year high of $21.08. The firm has a market cap of $15.13 billion, a price-to-earnings ratio of 97.36, a price-to-earnings-growth ratio of 0.97 and a beta of 1.21. The company has a fifty day simple moving average of $9.40 and a two-hundred day simple moving average of $13.06.

Blue Owl Capital Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Wednesday, May 13th will be given a $0.23 dividend. This is a positive change from Blue Owl Capital's previous quarterly dividend of $0.23. The ex-dividend date is Wednesday, May 13th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 9.5%. Blue Owl Capital's dividend payout ratio is 900.00%.

Trending Headlines about Blue Owl Capital

Here are the key news stories impacting Blue Owl Capital this week:

• Positive Sentiment: Q1 results showed stronger fee-related and distributable earnings, revenue growth and AUM expansion (AUM ~ $314–315B), which reassures investors worried about private-credit weakness and supports recurring fee outlook. Blue Owl's profit beats on higher fee-related earnings, AUM reaches $315 billion
• Positive Sentiment: Management disclosed it sold roughly half of its SpaceX stake at a $1.25T valuation and said the investment returned ~10x — a realized win that materially boosts reported returns and investor confidence ahead of SpaceX’s IPO. Blue Owl sold about half its SpaceX holding
• Positive Sentiment: Board declared a quarterly dividend of $0.23 per share (annualized yield ~9.5%), signaling management’s commitment to cash returns and making the stock more attractive to income-focused buyers.
• Positive Sentiment: Unusually large call-option activity (big uptick in call purchases) and reported Q1 share repurchases indicate speculative and institutional interest into the print — adding upside momentum intraday.
• Neutral Sentiment: Management’s full earnings-call transcript provides detail on segment performance, fundraising and capital-allocation priorities — useful for modeling future fee growth but not a single-day catalyst beyond the headlines. Q1 2026 Earnings Call Transcript
• Negative Sentiment: JPMorgan trimmed its price target to $10.50 and moved to neutral, reflecting continued analyst skepticism about the sustainability of private-credit growth — this caps upside for some investors. Price Target Lowered to $10.50 at JPMorgan
• Negative Sentiment: Litigation and shareholder actions: a stockholder suit alleges $414M in excessive fees tied to the adviser, and a separate investor notice highlights an OCIC (Blue Owl Credit Income Corp.) investigation — potential legal/ reputational overhangs. Stockholder sues Blue Owl adviser OCIC investors investigation notice

Hedge Funds Weigh In On Blue Owl Capital

A number of hedge funds and other institutional investors have recently modified their holdings of OWL. Arax Advisory Partners acquired a new position in shares of Blue Owl Capital in the 4th quarter valued at $25,000. Toronto Dominion Bank purchased a new stake in Blue Owl Capital in the 4th quarter worth about $26,000. Lavaca Capital LLC purchased a new stake in Blue Owl Capital in the 4th quarter worth about $28,000. Los Angeles Capital Management LLC purchased a new stake in Blue Owl Capital in the 4th quarter worth about $41,000. Finally, Quarry LP purchased a new stake in Blue Owl Capital in the 4th quarter worth about $42,000. Institutional investors and hedge funds own 35.85% of the company's stock.

Analyst Ratings Changes

Several research analysts recently weighed in on OWL shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Blue Owl Capital in a research note on Wednesday, January 21st. Citigroup reaffirmed an "outperform" rating on shares of Blue Owl Capital in a research note on Tuesday, January 27th. JPMorgan Chase & Co. decreased their target price on Blue Owl Capital from $19.00 to $10.50 and set a "neutral" rating for the company in a research note on Wednesday. Raymond James Financial reaffirmed a "strong-buy" rating on shares of Blue Owl Capital in a research note on Thursday, February 19th. Finally, TD Cowen decreased their price target on Blue Owl Capital from $16.00 to $14.00 and set a "buy" rating for the company in a research report on Monday, March 23rd. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Blue Owl Capital has an average rating of "Moderate Buy" and an average price target of $15.13.

Blue Owl Capital Company Profile

Blue Owl Capital is a global alternative asset manager that focuses on private credit, direct lending and equity-related strategies for institutional investors. Headquartered in New York, the firm develops and manages a range of private markets products designed to provide capital solutions to middle-market and larger corporate borrowers, as well as liquidity and partnership arrangements with private equity firms and other alternative managers.

Its core activities include direct lending and credit strategies that provide senior, unitranche and other structured loan products to companies across industries.

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