Q1 26 EPS
$0.47
Q1 26 Revenue
$763.0M
MISS 1.72%
Est. $776.4M
vs S&P Since Q1 26
+2.0%
BEATING MARKET
ARCC +3.2% vs S&P +1.3%
Market Reaction
Did ARCC Beat Earnings? Q1 2026 Results
Ares Capital Corporation delivered a mixed first quarter for fiscal 2026, falling short of Wall Street expectations on both the top and bottom lines as elevated unrealized losses weighed on results. The business development company posted core earnin… Read more Ares Capital Corporation delivered a mixed first quarter for fiscal 2026, falling short of Wall Street expectations on both the top and bottom lines as elevated unrealized losses weighed on results. The business development company posted core earnings per share of $0.47, missing the $0.48 consensus estimate by 2.61%, while total investment income of $763.00 million trailed the $776.36 million consensus by 1.72%, though it represented a substantial 71.1% increase year over year. The primary drag was $412.00 million in net unrealized losses on the investment portfolio, a sharp deterioration from $63.00 million in the year-ago period, reflecting credit spread widening and broader market volatility that pushed GAAP net income per share down to $0.13 from $0.36 a year ago. Net asset value per share slipped to $19.59 from $19.94 at year-end. Looking ahead, management pointed to improving lending conditions with enhanced spreads and lower leverage, roughly $6.00 billion in available liquidity, and an investment backlog of approximately $1.80 billion as reasons for optimism heading into the remainder of the year.
Key Takeaways
- • Net investment income increased to $398 million ($0.55/share) from $365 million ($0.54/share) year-over-year
- • Interest income from investments grew to $550 million from $526 million year-over-year
- • Net realized gains of $106 million versus net realized losses of $61 million in Q1 2025
- • Net unrealized losses of $412 million significantly weighed on GAAP earnings versus $63 million in Q1 2025
- • Weighted average yields on debt and other income producing securities steady at 10.3% at amortized cost
- • Improving lending conditions with enhanced spreads, lower leverage and better documentation
ARCC Forward Guidance & Outlook
Management noted improving lending conditions characterized by enhanced spreads and fees, lower leverage, and more attractive terms and documentation in an environment of heightened volatility and reduced transaction activity. Post-quarter, approximately $198 million of new investment commitments were made from April 1 through April 23, 2026, with an investment backlog of approximately $1.8 billion. With approximately $6.0 billion of available liquidity, modest leverage, and a well-laddered liability profile with limited near-term maturities, management believes the company is well positioned to support portfolio companies and opportunistically invest in new companies.
ARCC YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
“We are off to a strong start to 2026 with solid core earnings, continued healthy portfolio performance and borrower fundamentals, and low levels of non-accruing investments. In an environment characterized by heightened volatility and reduced transaction activity, we are seeing improving lending conditions, including enhanced spreads and fees, lower leverage and more attractive terms and documentation. With our scale, diversified portfolio and strong financial position, we believe we are well positioned to capitalize on new investment opportunities and to continue to generate attractive long-term shareholder returns.”
— Kort Schnabel, Q1 2026 Earnings Press Release
ARCC Earnings Trends
ARCC vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ARCC EPS Trend
Earnings per share: estimate vs actual
ARCC Revenue Trend
Quarterly revenue: estimate vs actual
ARCC Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 | — | $0.47 | — | $763.0M | -1.72% |
| Q4 25 BEAT FY | $0.50 | $0.50 | +0.38% | $793.0M | — |
| FY Full Year | $1.99 | $2.01 | +0.95% | $3.05B | -0.06% |
| Q3 25 MISS | $0.50 | $0.50 | -0.68% | $782.0M | +2.01% |
| Q2 25 MISS | $0.51 | $0.50 | -1.11% | $745.0M | -0.72% |
| Q1 25 MISS | $0.54 | $0.50 | -6.65% | $732.0M | -4.93% |