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AllianceBernstein (AB)
NYSE:AB
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AllianceBernstein
(NYSE:AB)
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Rating:78Outperform
Price Target:
$46.00
▲(15.96% Upside)
The score is driven primarily by strong underlying financial quality (high profitability, strong cash conversion, and zero debt) and supportive valuation (moderate P/E with a high dividend yield). Offsetting factors are the earnings-call risks around net outflows and weaker equity performance, plus only moderate technical momentum.
Positive Factors
Conservative Balance Sheet
AB's zero-debt balance sheet materially reduces financial risk and provides durable financial flexibility. Low leverage supports stable distributions and funds strategic investments (private-markets build, tech platform) while cushioning revenue swings from AUM volatility.
Strong Cash Generation
High free cash flow conversion demonstrates earnings quality and funds capital allocation without relying on external financing. Robust FCF supports sustained dividends, reinvestment in platform/technology, and absorption of temporary fee or flow headwinds over the medium term.
Scale & Private-Markets Growth
Record firm AUM and rapid private-markets scale increase higher-fee, stickier revenue streams. Larger private assets and stated $90–$100B target for 2027 support durable fee diversification, stronger performance-fee potential, and strategic partnerships (insurance, Equitable) that enhance long-term fee mix.
Negative Factors
Sustained Net Outflows
Large net outflows, especially from active equity, pressure AUM and revenue given AB's AUM-linked fee model. Persistent retail and institutional redemptions can erode higher-fee segments, compress fee rates, and force longer-term focus on retention and product repositioning to restore durable organic growth.
Equity Performance & Fee Volatility
Weak short- and medium-term equity outperformance reduces performance-fee capture and undermines client retention in active strategies. Continued relative underperformance can structurally lower revenue growth, hinder mandate wins, and pressure margins in higher-fee active equity businesses over coming quarters.
Near-Term Implementation Costs
Planned technology and commercial-mortgage platform investments raise noncompensation costs and create near-term margin headwinds before payback. Implementation costs and onboarding risks could delay expected efficiency gains and temporarily reduce free cash flow available for other strategic initiatives.
AllianceBernstein (AB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.79B
Dividend Yield8.93%
Average Volume (3M)514.59K
Price to Earnings (P/E)13.8
Beta (1Y)0.68
Revenue GrowthN/A
EPS Growth-12.92%
CountryUS
Employees4,341
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.96
Shares Outstanding92,184,364
10 Day Avg. Volume540,354
30 Day Avg. Volume514,588
Financial Highlights & Ratios
PEG Ratio-0.58
Price to Book (P/B)2.82
Price to Sales (P/S)10.47
P/FCF Ratio3.51
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue13.18
Enterprise Value/Gross Profit13.18
Enterprise Value/Ebitda18.05
Forecast
1Y Price Target
$41.75Price Target Upside5.24% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)3.62
Revenue Forecast (FY)$3.82B
AllianceBernstein Business Overview & Revenue Model
Company DescriptionAllianceBernstein Holding L.P. is publicly owned investment manager. The firm also provides research services to its clients. It provides its services to investment companies, pension and profit sharing plans, banks and thrift institutions, trusts, estates, government agencies, charitable organizations, individuals, corporations, and other business entities. The firm invests in public equity, fixed income, and alternative investment markets across the globe. It employs long/short strategy to make its investments. The firm conducts in-house research to make its investments. AllianceBernstein Holding L.P. was founded in 1987 and is based in New York, New York.
How the Company Makes MoneyAllianceBernstein generates revenue primarily through management fees, which are charged based on a percentage of assets under management (AUM). The firm earns these fees from managing portfolios for institutional clients, such as pension funds, insurance companies, and endowments, as well as for high-net-worth individuals and retail investors. In addition to management fees, the company may also earn performance fees, which are contingent on meeting or exceeding certain investment benchmarks. AllianceBernstein collaborates with various financial institutions and distribution networks to enhance its market reach and client base, further contributing to its revenue streams. Additionally, the company invests in research and technology to provide innovative investment solutions and maintain competitive advantages in the asset management industry.
AllianceBernstein Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: meaningful strategic and operational progress (record AUM, private markets scaling +18% YoY, margin expansion to 33.7%, strong private wealth and muni growth) alongside significant distribution and performance challenges (net outflows of $9.4B, $22.5B active equity outflows, weakened public equity performance and a 24% decline in performance fees). Management is pursuing disciplined expense control and targeted investments (Equitable partnership, new tech platform, commercial mortgage build-out) to offset flow and performance headwinds, but near-term implementation costs and mix effects may weigh on fee income and margins before long-term benefits are realized.Q4-2025 Updates
Positive Updates
Record Assets Under Management
Firm-wide AUM reached a record $867 billion at year-end 2025, reflecting market appreciation, strong sales, and organic growth across key channels.
Private Markets Growth and Scale
Private markets AUM reached $82 billion, up 18% year-over-year, driven by ~ $9 billion of deployments in 2025; firm reiterated a $90–$100 billion private markets target for 2027 and expects private market strategies to contribute $70–$80 million in performance fees in 2026.
Bernstein Private Wealth Strength
Bernstein Private Wealth managed $156 billion in AUM, contributed roughly 37% of firm-wide revenues in 2025, and delivered net new client asset growth of 7% in Q4 and 6% for the full year (annual organic growth ~2%).
SMA and Active ETF Momentum
SMA franchise AUM was $62 billion, growing 12% organically in 2025; active ETF suite expanded to $14 billion across 24 strategies, delivering 65% organic growth in 2025 (excluding conversions).
Tax-Exempt and Alternatives Inflows
Tax-exempt franchise recorded $3.9 billion of inflows in Q4 and $11.6 billion for the year (13 consecutive years of organic growth). Alternatives and multi-asset strategies posted $1.9 billion inflows in Q4 and $10.6 billion for the full year.
Strong Profitability and Margin Expansion
Adjusted operating margin expanded to 33.7% for the year (34.5% in Q4), at the upper end of the 30%–35% Investor Day target; full-year adjusted earnings per unit were $3.33, up 2% year-over-year, and full-year distributions were $3.38, up 4%.
Expense Discipline and Operational Efficiency
Full-year operating expenses declined 2% to $2.3 billion; noncompensation operating expenses were $599 million (below prior guidance). Full-year compensation ratio of 48.3% modestly better than prior guidance (48.5%).
Strategic Partnership with Equitable
Expanded collaboration with Equitable, including plans to onboard more than $10 billion of long-duration commercial mortgage assets by year-end 2026 and grow insurance-tailored assets to over $20 billion; general account assets grew 36% year-over-year and AB manages over $59 billion for 90+ third-party insurance clients.
Fixed Income and Benchmark Outperformance
Fixed income markets were favorable in 2025 (Bloomberg US Aggregate +7.3% for 2025; global high yield +10% for 2025). AB reported 86% of AUM outperformed over 1- and 3-year periods and 67% over 5 years (strong muni and higher-quality fixed income results).
Negative Updates
Firm-Wide Net Outflows and Active Equity Redemptions
Total net outflows were $9.4 billion in 2025 (including $3.8 billion in Q4). Active equity experienced $22.5 billion of outflows for the year and $7.6 billion in Q4, with roughly half driven by retail redemptions—a material headwind to AUM and higher-fee products.
Equity Performance Pressure
Equity performance weakened in 2025 with only 21% of AUM outperforming over one year (37% over three years, 51% over five years). Largest US equity franchises, particularly growth- and defensive-oriented strategies, lagged amid narrow market leadership.
Performance Fees Declined Year-Over-Year
Full-year performance fees fell 24% to $172 million (from $227 million in 2024). Q4 performance fees were $82 million versus $133 million in the prior-year quarter, contributing to lower Q4 adjusted EPS (96¢ per unit, down 9% year-over-year).
Retail Channel Softness and Taxable Fixed Income Volatility
Retail net outflows totaled $3.5 billion in Q4 and $9.1 billion for the year, driven by active equity redemptions and APAC taxable fixed income weakness amid FX and geopolitical headwinds; taxable fixed income had $2 billion outflows in Q4 and $9.1 billion for the year.
Near-Term Cost and Implementation Headwinds
Management plans technology and commercial mortgage platform investments that will increase near-term noncompensation expense (2026 noncomp guidance $625–$650 million, implying ~6–7% growth). The new investment management platform implementation is expected to have ~ $40 million total cash flow impact over four years and ~ $10 million P&L impact in 2026, with annual net savings of $20–$25 million not expected until ~2030.
Fee Rate and Mix Pressure from Outflows
Firm-wide fee rate was 38.7 bps in Q4 and 38.9 bps for the full year; outflows from higher-fee active equity products and mix shifts toward lower-fee SMAs and some fixed income inflows create modest fee rate pressure.
Company Guidance
AB gave granular 2026 guidance and multi‑year targets: they will begin accruing compensation at a 48.5% ratio in 2026, expect non‑compensation expense of $625–$650M (implying ~6–7% YoY growth at the midpoint) with promo & servicing ~20–30% and G&A ~70–80% of non‑comp, and assume roughly $10M of 2026 P&L impact from technology implementation and commercial mortgage loan (CML) onboarding; ABLP’s effective tax rate is forecast at 6–7% for 2026; performance‑fee guidance assumes private markets will contribute $70–80M and public markets at least $10–20M (a floor), and they plan to onboard >$10B of long‑duration commercial mortgage assets for Equitable by year‑end 2026 while expecting to add ~$3B of insurance private‑asset mandates in 2026; longer term AB reiterated a $90–100B private‑markets AUM target for 2027, noted Q4 adjusted operating margin of 34.5% (FY 33.7%, Investor Day target 30–35%), and outlined tech implementation cash flow of ~$40M over four years with $20–25M annual net savings beginning in 2030.AllianceBernstein Financial Statement Overview
Summary
High profitability and strong cash conversion support a strong score, reinforced by a zero-debt balance sheet. Offsets include uneven revenue momentum (notably the 2025 decline) and signs of balance-sheet contraction versus prior years.Income Statement
Profitability is exceptionally strong, with net profit margins consistently around ~88%–93% across the annual periods provided, indicating a highly profitable earnings profile. However, the growth trajectory is mixed and more volatile: revenue rose in 2024 (+0.5%) after softness in 2022–2023, then declined in 2025 (-7.5%). Overall, the company looks very profitable but with uneven top-line momentum, which tempers the score.74
Positive
Balance Sheet
The balance sheet is conservatively positioned with zero reported debt and a 0.0 debt-to-equity ratio in every year shown, which materially reduces financial risk. Returns on equity are solid (roughly ~13%–25%), though equity declined meaningfully from 2023 to 2025 (while assets also dropped), suggesting some balance-sheet contraction that is worth monitoring despite strong returns and low leverage.86
Very Positive
Cash Flow
Cash generation is strong, with free cash flow closely tracking net income (free cash flow to net income ~0.91–1.00), indicating good earnings quality and conversion. Free cash flow stepped up sharply in 2025 (growth +174%), but cash flow has been somewhat variable over the multi-year period (including a decline in 2023), which adds some volatility to the otherwise strong cash profile.82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 332.76M | 461.95M | 299.78M | 305.50M | 416.33M |
| Gross Profit | 332.76M | 461.95M | 299.78M | 305.50M | 416.33M |
| EBITDA | 243.00M | 461.95M | 299.78M | 305.50M | 416.33M |
| Net Income | 299.84M | 423.37M | 264.18M | 274.17M | 385.84M |
Balance Sheet | |||||
| Total Assets | 1.24B | 2.03B | 2.08B | 2.07B | 1.62B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 832.04M | 0.00 | 0.00 | 0.00 |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 1.66M | 2.77M | 1.29M | 1.62M | 2.14M |
| Stockholders Equity | 1.24B | 2.03B | 2.08B | 2.07B | 1.62B |
Cash Flow | |||||
| Free Cash Flow | 994.10M | 1.28B | 293.98M | 362.61M | 355.11M |
| Operating Cash Flow | 1.03B | 1.41B | 293.98M | 362.61M | 355.11M |
| Investing Cash Flow | -38.76M | -115.73M | 0.00 | -1.77M | -3.40M |
| Financing Cash Flow | -1.07B | -1.60B | -293.98M | -360.85M | -351.71M |
AllianceBernstein Technical Analysis
Positive
39.67
Price Trends
39.12
Positive
38.70
Positive
38.30
Positive
Market Momentum
0.18
Positive
50.01
Neutral
14.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AB, the sentiment is Positive. The current price of 39.67 is below the 20-day moving average (MA) of 40.15, above the 50-day MA of 39.12, and above the 200-day MA of 38.30, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 50.01 is Neutral, neither overbought nor oversold. The STOCH value of 14.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AB.
AllianceBernstein Risk Analysis
AllianceBernstein disclosed 38 risk factors in its most recent earnings report. AllianceBernstein reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AllianceBernstein Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.79B | 13.85 | 18.35% | 8.93% | ― | -12.92% | |
75 Outperform | $4.91B | 18.54 | 18.61% | 3.00% | 33.03% | -3.55% | |
74 Outperform | $4.35B | 10.93 | 34.09% | 2.46% | 9.32% | 53.51% | |
70 Outperform | $8.83B | 14.55 | 21.77% | 0.01% | 1.08% | 8.24% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $3.42B | 10.48 | 62.62% | 8.72% | 5.46% | 2.10% | |
63 Neutral | $3.37B | 22.24 | 31.53% | 3.92% | 12.73% | 19.01% |
* Financial Sector Average
AB
AllianceBernstein
39.67
5.10
14.74%
AMG
Affiliated Managers
287.69
121.83
73.46%
CNS
Cohen & Steers
67.12
-16.93
-20.14%
FHI
Federated Hermes
55.88
18.93
51.21%
APAM
Artisan Partners
41.60
3.08
7.98%
VCTR
Victory Capital Holdings
75.59
13.12
21.00%
AllianceBernstein Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
AllianceBernstein Reports Preliminary January 2026 Assets Under Management
Neutral
Feb 11, 2026
AllianceBernstein announced on February 11, 2026 that it had furnished a news release detailing its preliminary assets under management as of January 31, 2026. The disclosure of updated AUM figures provides investors and stakeholders with an early view of the firm’s scale of managed assets at the start of the year, offering a snapshot of business traction and potential fee-earning capacity.
By releasing preliminary AUM data, the company reinforces its practice of regular transparency around key operating metrics. This cadence of reporting can influence market perceptions of AllianceBernstein’s growth momentum and competitive position within the asset management industry, as asset levels are a critical driver of revenue and profitability.
The most recent analyst rating on (AB) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on AllianceBernstein stock, see the AB Stock Forecast page.
Financial DisclosuresRegulatory Filings and Compliance
AllianceBernstein Reports Preliminary Year-End 2025 Assets Under Management
Neutral
Jan 12, 2026
AllianceBernstein L.P. and AllianceBernstein Holding L.P. announced that they have furnished a news release dated January 12, 2026, reporting the firm’s preliminary assets under management as of December 31, 2025. The disclosure of these preliminary AUM figures provides investors and stakeholders with an updated snapshot of the scale of the firm’s managed assets at year-end 2025, a key indicator for assessing its business momentum and competitive position in the asset management industry.
The most recent analyst rating on (AB) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on AllianceBernstein stock, see the AB Stock Forecast page.
Business Operations and StrategyExecutive/Board Changes
AllianceBernstein Names Onur Erzan as New President
Positive
Jan 5, 2026
On January 5, 2026, AllianceBernstein appointed 50-year-old Onur Erzan as President, effective immediately, elevating him from his prior role as Head of Global Client Group and Private Wealth and his more recent oversight of Global Private Alternatives. Erzan, who joined AB in 2021 after a 20-year career at McKinsey & Company where he co-led the Wealth & Asset Management practice, will also chair the AB Operating Committee while Seth Bernstein remains Chief Executive Officer, signaling continuity in leadership alongside a strategic emphasis on client distribution, private wealth and alternative investments within the firm’s senior management structure.
The most recent analyst rating on (AB) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on AllianceBernstein stock, see the AB Stock Forecast page.
Financial Disclosures
AllianceBernstein Reports November 2025 Asset Figures
Neutral
Dec 10, 2025
On December 10, 2025, AllianceBernstein announced its preliminary assets under management as of November 30, 2025. This announcement provides stakeholders with insights into the company’s financial status and market positioning at the end of November 2025.
The most recent analyst rating on (AB) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on AllianceBernstein stock, see the AB Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.