Blue Owl Capital (NYSE:OWL) Posts Earnings Results, Meets Expectations

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

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 Up 9.6%

NYSE:OWL traded up $0.86 on Thursday, reaching $9.74. 71,831,723 shares of the company’s stock were exchanged, compared to its average volume of 28,249,712. The firm has a market capitalization 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 business has a fifty day moving average of $9.40 and a 200-day moving average of $13.06. Blue Owl Capital has a 52-week low of $7.95 and a 52-week high of $21.08.

Blue Owl Capital Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, May 27th. Shareholders of record on Wednesday, May 13th will be paid a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a yield of 9.5%. This is a boost from Blue Owl Capital’s previous quarterly dividend of $0.23. The ex-dividend date is Wednesday, May 13th. Blue Owl Capital’s payout ratio is currently 900.00%.

Analysts Set New Price Targets

OWL has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. cut their price target on shares of Blue Owl Capital from $19.00 to $10.50 and set a “neutral” rating for the company in a report on Wednesday. BMO Capital Markets cut their price target on shares of Blue Owl Capital from $15.00 to $11.00 and set an “outperform” rating for the company in a report on Tuesday, March 24th. UBS Group lowered their price objective on shares of Blue Owl Capital from $16.50 to $12.00 and set a “neutral” rating for the company in a research report on Friday, February 20th. Deutsche Bank Aktiengesellschaft cut shares of Blue Owl Capital from a “buy” rating to a “hold” rating and lowered their price objective for the stock from $15.00 to $10.00 in a research report on Tuesday, February 24th. Finally, Wolfe Research set a $20.00 price objective on shares of Blue Owl Capital in a research report on Wednesday, January 7th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $15.13.

Institutional Investors Weigh In On Blue Owl Capital

A number of hedge funds have recently added to or reduced their stakes in the business. Alberta Investment Management Corp acquired a new stake in Blue Owl Capital during the 4th quarter worth approximately $1,273,000. NewEdge Advisors LLC lifted its holdings in Blue Owl Capital by 11.8% during the 4th quarter. NewEdge Advisors LLC now owns 354,023 shares of the company’s stock worth $5,289,000 after buying an additional 37,412 shares in the last quarter. Cat Rock Capital Management LP lifted its holdings in Blue Owl Capital by 0.6% during the 4th quarter. Cat Rock Capital Management LP now owns 1,220,586 shares of the company’s stock worth $18,236,000 after buying an additional 7,840 shares in the last quarter. XTX Topco Ltd acquired a new stake in Blue Owl Capital during the 4th quarter worth approximately $5,049,000. Finally, nVerses Capital LLC acquired a new stake in Blue Owl Capital during the 4th quarter worth approximately $150,000. 35.85% of the stock is currently owned by institutional investors and hedge funds.

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

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.