Artisan recently released its latest 10-Q report. Artisan Partners Asset Management Inc. is a publicly owned investment manager founded in 1994 and based in Milwaukee, with offices in Atlanta, New York, San Francisco, Leawood and London. It manages separate equity and fixed-income portfolios for pension plans, trusts, endowments, foundations, charitable organizations, government entities, private funds, non-U.S. funds, mutual funds and collective trusts, using fundamental analysis across global public markets.
In Item 2, management said the firm operated through 12 autonomous investment teams managing 27 strategies as of June 30, 2026, with about 73% of AUM tied to U.S.-domiciled clients and 27% to clients outside the U.S. The company said nearly all revenue comes from investment management fees based on AUM, while most expenses, including compensation, move with revenue. It also said it pays out a majority of cash generated from operations through dividends and distributions.
AUM ended the quarter at $183.4 billion, up $10.4 billion, or 6%, from $173.0 billion at March 31, 2026. That increase came from $21.2 billion of market appreciation, partly offset by $10.5 billion of net client cash outflows. Average AUM for the quarter was $181.9 billion, down 0.3% from the prior quarter but up 9% from $166.8 billion a year earlier.
Revenue for the quarter was $307.9 million, up 9% from $282.8 million a year earlier. GAAP operating margin was 27.5%, down from 28.2% in the prior-year quarter, while adjusted operating margin rose to 32.9% from 31.7%. Earnings were $1.11 per basic and diluted share, and adjusted EPS was $0.94.
The company declared and paid a $0.77 per share dividend on Class A common stock during the quarter, then declared a $0.80 per share quarterly dividend effective July 28, 2026. During the six months ended June 30, 2026, certain Holdings limited partners exchanged 167,614 common units for 167,614 shares of Class A common stock, and APAM’s equity ownership in Holdings increased to 88% from 87% at year-end 2025.
Client flows were mixed by asset class. In the second quarter, credit and alternative strategies produced combined net inflows of $1.0 billion, while equity strategies saw net outflows of $11.5 billion. About $9.2 billion of those equity outflows were concentrated in Growth and U.S. Value, including $2.8 billion from Growth and $6.4 billion from client account terminations in U.S. Value. Following the loss of two large institutional mandates in U.S. Value, the company said it will wind down that team’s business, with completion expected in the quarter ending September 30, 2026.
For the first half of 2026, total revenues were $610.9 million, up from $559.9 million a year earlier. AUM at June 30, 2026 was unchanged from the quarter-end figure of $183.4 billion, while net client cash outflows for the six months totaled $13.6 billion versus $4.7 billion in the prior-year period. Gross client inflows were $18.0 billion and gross outflows were $31.6 billion in the first half. Following these announcements, the company's shares moved -1.06%, and are now trading at a price of $39.24. Check out the company's full 10-Q submission here.
