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Ameriprise Financial (AMP)
NYSE:AMP
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Ameriprise Financial
(NYSE:AMP)
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Rating:67Neutral
Price Target:
$513.00
â–²(8.76% Upside)
Action:DowngradedDate:02/20/26
The score is driven primarily by solid fundamentals (strong profitability and revenue momentum, improving leverage) and a constructive earnings outlook with strong flows and margins, partially offset by the sharp 2025 cash-flow pullback. Technicals are a notable near-term headwind given broad weakness versus key moving averages and bearish momentum indicators, while valuation is supportive with a modest P/E and a moderate dividend yield.
Positive Factors
High profitability & margins
Sustained high operating margins and an exceptionally elevated ROE reflect durable operating leverage and efficient capital use across Advice, Asset Management and Annuities. This supports consistent fee generation, reinvestment capacity, and the ability to fund capital returns even through normal industry cycles.
Scale of assets & strong client flows
Large and growing AUM with robust net inflows creates a durable fee revenue base and distribution advantage. Scale improves product economics, adviser productivity, and cross‑sell opportunities, making revenue streams more predictable and raising barriers for smaller competitors.
Strong capital position & shareholder returns
Meaningful excess capital and holding liquidity provide flexibility to fund buybacks, strategic investments, and balance‑sheet buffer. Consistent capital returns signal management discipline and the ability to support shareholder value while still investing in growth initiatives.
Negative Factors
2025 free cash flow step‑down
A material decline in operating and free cash flow introduces cash‑flow volatility risk that can constrain discretionary uses like buybacks or bolt‑on investments. Even with strong earnings, weaker cash conversion heightens funding and liquidity sensitivity over the next several quarters.
Cash revenue sensitivity to rates
A portion of revenues tied to cash and bank yields is structurally rate‑sensitive. If rates decline or remain lower, cash sweep yields and related fee income can be persistently depressed, reducing a stable revenue slice and pressuring reported earnings and margins over the medium term.
Recruiting & distribution expense pressure
Sustained competition for advisers forces higher transition assistance and distribution spend, which can raise recurring operating expenses. If recruiting costs remain elevated, margin sustainability and return on incremental AUM may erode, pressuring profitability despite strong top‑line flows.
Ameriprise Financial (AMP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.39B
Dividend Yield1.26%
Average Volume (3M)684.93K
Price to Earnings (P/E)13.1
Beta (1Y)1.22
Revenue Growth5.76%
EPS Growth39.77%
CountryUS
Employees13,600
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)10.83
Shares Outstanding92,905,716
10 Day Avg. Volume813,688
30 Day Avg. Volume684,930
Financial Highlights & Ratios
PEG Ratio1.36
Price to Book (P/B)7.10
Price to Sales (P/S)2.46
P/FCF Ratio16.07
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue2.14
Enterprise Value/Gross Profit3.85
Enterprise Value/Ebitda31.95
Forecast
1Y Price Target
$560.67Price Target Upside18.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)42.96
Revenue Forecast (FY)$19.46B
Ameriprise Financial Business Overview & Revenue Model
Company DescriptionAmeriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through four segments: Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other. The Advice & Wealth Management segment provides financial planning and advice; brokerage products and services for retail and institutional clients; discretionary and non-discretionary investment advisory accounts; mutual funds; insurance and annuities products; cash management and banking products; and face-amount certificates. The Asset Management segment offers investment management and advice, and investment products to retail, high net worth, and institutional clients through unaffiliated third-party financial institutions and institutional sales force. This segment products also include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds, variable product funds underlying insurance, and annuity separate accounts; and institutional asset management products, such as traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds, and property and infrastructure funds. The Retirement & Protection Solutions segment provides variable annuity products to individual clients, as well as life and DI insurance products to retail clients. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. Ameriprise Financial, Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota.
How the Company Makes MoneyAmeriprise Financial generates revenue primarily through fees and commissions associated with its financial advisory services, asset management, and insurance products. The Advice & Wealth Management segment earns fees from financial planning services and commissions from investment products sold by advisors. The Asset Management segment derives revenue from management fees charged on mutual funds and institutional investment products. Additionally, the Annuities segment generates income through the sale of annuity products, which include fees for asset management and mortality risk. Significant partnerships with financial advisors and institutions also contribute to its earnings by expanding its client base and service offerings.
Ameriprise Financial Key Performance Indicators (KPIs)
Any
Advice and Wealth Management Client Assets
Tracks the total assets managed for clients, reflecting the company's ability to attract and retain wealth management clients and generate fee-based income.
Tracks the total assets managed for clients, reflecting the company's ability to attract and retain wealth management clients and generate fee-based income.
Data provided by:
The Fly
The FlyAmeriprise Financial Earnings Call Summary
Earnings Call Date:Dec 31, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call presented a strong set of operating and financial results with record AUM/A, double‑digit EPS growth (quarterly) and very strong profitability and capital returns, alongside continued investments in technology, Signature Wealth, banking products and distribution. Notable risks discussed include sensitivity of cash revenues to recent Fed cuts, mid‑single‑digit expense growth driven by strategic investments, recruiting competition that can pressure distribution spend, some elevated claims in RPS (within range), and normal seasonality that could temper near‑term flows. Overall, the positive operational momentum, record metrics, strong margins, healthy balance sheet and aggressive capital return program outweigh the manageable headwinds identified.Q4-2025 Updates
Positive Updates
Record Assets Under Management, Administration and Advisement
AUM/A reached $1.7 trillion ( $1,700,000,000,000 ), a new high, up 11% year‑over‑year, demonstrating strong market and flow-driven asset growth.
Strong Revenue and Earnings Growth
Adjusted operating revenue for the quarter grew 10% to $4.9 billion and adjusted operating EPS was $10.83 (up 16% year‑over‑year for the quarter). For full year 2025, revenues grew 6% and adjusted EPS increased ~12%.
Exceptional Profitability and Margins
Firm‑wide operating margin was 27%. Return on equity reached a record 53.2% (up >100 basis points), and Asset Management margins hit ~40% in the quarter, reflecting high operating leverage and profitability.
Very Strong Client Flows and Asset Gains
Total client assets rose to $1.2 trillion (up 13% YoY). Total client inflows were $13.3 billion (up 18% YoY; ~4.7% annualized flow rate). Wrap assets increased 17% to $670 billion with $12.1 billion net inflows (~7.4% annualized flow rate). Transactional activity up 5%.
Adviser Productivity and Recruiting Momentum
Adviser productivity increased 8% to $1.1 million per adviser. The firm added 91 experienced advisers in the quarter (adviser count up ~1% YoY) and reported a strong recruiting pipeline.
Capital Return and Strong Balance Sheet
Q4 capital return was $1.1 billion (101% of operating earnings in the quarter); full‑year 2025 capital returned $3.4 billion (≈88% of operating earnings). Excess capital of ~$2.1 billion and holding company liquidity of ~$2.2 billion provide flexibility.
Asset Management Performance and Net Inflows
Asset Management AUM/A reached $721 billion (up 6% YoY). Revenues grew 12% to ~$1.0 billion, operating earnings rose 17% to $293 million, net inflows were $1.9 billion, and the firm highlighted strong Morningstar ratings and successful ETF launches.
Negative Updates
Interest Rate Environment and Cash Revenue Pressure
The Fed cut rates by a quarter point, and cash-related revenues were modestly lower versus prior period; cash earnings rose only modestly despite other gains, indicating sensitivity to short‑term rate moves.
Expense Growth and Investment-Related Cost Increases
Adjusted operating expenses in Wealth Management increased ~11% in the quarter; distribution expense rose ~12% (adviser compensation up in line with revenue). Management expects OpEx to grow modestly (mid single digits) as investments are balanced with transformation savings.
Competitive Recruiting Pressure and Distribution Expense Risk
Management acknowledged a competitive recruiting backdrop requiring attractive transition assistance (TA) and noted distribution expense could increase as they compete for advisers, which may pressure margins if sustained.
Elevated Mortality / Claims in Retirement & Protection
RPS experienced higher mortality/claims frequency this quarter (some balance of frequency and severity), though management characterized it as within range and not an emerging systemic issue.
Seasonality and Near‑Term Flow Uncertainty
Management noted seasonality (strong Q4) that could reverse in Q1, and advised flows and cash sweep balances may exhibit normal seasonal movements—introducing near‑term variability in organic growth rates.
Areas for Further Asset Management Share Gain
Management called out the need to increase traction in fixed income strategies and continue building out SMAs, active ETFs and alternatives to capture additional market share—an acknowledged area for improvement.
Company Guidance
Management guided that 2026 will continue targeted investments in technology, AI, Signature Wealth and banking while keeping firmwide operating expense growth to low single digits and AWM G&A growth in the mid-single-digit range, with those investments offset by transformation and productivity gains. They reiterated expectations for sustained organic growth (A WM organic flow run-rate of roughly 4–5% — Q4 client inflows $13.3B = 4.7% annualized; wrap net inflows $12.1B = 7.4% annualized) and maintained confidence in strong profitability and margins (Q4 adjusted operating revenue $4.9B, adjusted EPS $10.83, firmwide operating margin ~27%, AWM margin ~29.3%, asset management margin ~40%, ROE ~53.2%), supported by record balances (AUM/A/Advisement $1.7T, total client assets $1.2T, AM AUM $721B), adviser productivity of ~$1.1M, and recruiting momentum (91 experienced advisers in Q4). Capital return remains a priority — Q4 buybacks totaled $1.1B (101% of operating earnings) and full-year returns were $3.4B (88% of operating earnings) — backed by excess capital of ~$2.1B, holding company liquidity ~$2.2B, bank assets $25.3B, cash sweep balances $29.9B and a bank portfolio yield ~4.6%.Ameriprise Financial Financial Statement Overview
Summary
Strong profitability and multi-year revenue growth support the score, and leverage has improved to below 1.0 debt-to-equity in 2025. The key drag is the sharp 2025 step-down in operating and free cash flow versus 2024, raising near-term cash-flow volatility risk.Income Statement
Revenue shows a solid multi-year upward trajectory (2021–2025), with 2025 revenue growth accelerating versus 2024. Profitability remains strong with consistently healthy gross and operating margins and net margins generally in the mid-to-high teens, though margins have compressed from the 2021–2022 peak levels. Net income has been relatively resilient but not consistently growing year-over-year, which slightly tempers the otherwise strong operating profile.78
Positive
Balance Sheet
Leverage appears manageable with debt-to-equity generally around ~0.8–1.4 and improving recently (down from 2022–2023 levels to below 1.0 in 2025). Equity has rebuilt meaningfully since 2022, supporting balance-sheet stability. Returns on equity are very high, which is a strength but can also reflect a relatively equity-light structure; combined with meaningful total debt, this keeps overall balance-sheet risk at a moderate level rather than best-in-class.71
Positive
Cash Flow
Cash generation has historically been strong, with free cash flow closely tracking net income in most years (near ~1.0), indicating good earnings quality. However, 2025 shows a sharp step-down in operating and free cash flow (down materially versus 2024), alongside a large negative free-cash-flow growth rate, signaling volatility. The recent decline is the main drag despite otherwise solid longer-term cash conversion.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.49B | 18.89B | 17.93B | 16.10B | 14.33B | 13.39B |
| Gross Profit | 10.29B | 10.21B | 10.36B | 9.42B | 8.90B | 8.26B |
| EBITDA | 1.24B | 1.87B | 4.59B | 4.41B | 5.33B | 4.95B |
| Net Income | 3.63B | 3.56B | 3.40B | 2.56B | 3.15B | 3.42B |
Balance Sheet | ||||||
| Total Assets | 190.09B | 190.90B | 181.40B | 175.19B | 158.85B | 175.91B |
| Cash, Cash Equivalents and Short-Term Investments | 46.86B | 10.10B | 60.67B | 59.13B | 47.91B | 39.30B |
| Total Debt | 5.88B | 5.86B | 5.47B | 5.75B | 5.38B | 5.20B |
| Total Liabilities | 183.63B | 184.35B | 176.18B | 170.46B | 155.05B | 169.97B |
| Stockholders Equity | 6.46B | 6.55B | 5.23B | 4.73B | 3.80B | 5.94B |
Cash Flow | ||||||
| Free Cash Flow | 5.86B | 2.89B | 6.42B | 4.50B | 4.22B | 3.21B |
| Operating Cash Flow | 6.04B | 2.89B | 6.59B | 4.68B | 4.41B | 3.33B |
| Investing Cash Flow | -718.00M | -650.00M | -551.00M | -9.26B | -13.58B | -4.38B |
| Financing Cash Flow | -5.74B | -2.08B | -5.17B | 4.41B | 8.43B | 1.72B |
Ameriprise Financial Technical Analysis
Negative
471.69
Price Trends
499.53
Negative
483.30
Negative
495.88
Negative
Market Momentum
-7.96
Positive
38.88
Neutral
23.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMP, the sentiment is Negative. The current price of 471.69 is below the 20-day moving average (MA) of 503.75, below the 50-day MA of 499.53, and below the 200-day MA of 495.88, indicating a bearish trend. The MACD of -7.96 indicates Positive momentum. The RSI at 38.88 is Neutral, neither overbought nor oversold. The STOCH value of 23.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AMP.
Ameriprise Financial Risk Analysis
Ameriprise Financial disclosed 31 risk factors in its most recent earnings report. Ameriprise Financial 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
Ameriprise Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $82.24B | 16.15 | 12.96% | 1.71% | 4.22% | 51.01% | |
73 Outperform | $27.90B | 16.88 | 13.37% | 2.21% | -4.52% | 7.01% | |
70 Outperform | $163.30B | 34.34 | 35.78% | 3.02% | 33.12% | 19.86% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $44.39B | 13.14 | 60.51% | 1.26% | 5.76% | 39.77% | |
66 Neutral | $36.19B | 13.80 | 11.07% | 2.43% | 5.62% | 49.49% | |
59 Neutral | $19.79B | 25.18 | 12.77% | 2.30% | -24.62% | 437.16% |
* Financial Sector Average
AMP
Ameriprise Financial
471.69
-52.52
-10.02%
BK
Bank of New York Mellon
118.19
32.00
37.12%
STT
State Street
127.94
32.25
33.71%
BX
Blackstone Group
121.27
-30.63
-20.16%
CG
Carlyle Group
53.23
5.07
10.53%
NTRS
Northern
144.76
34.96
31.84%
Ameriprise Financial Corporate Events
Business Operations and StrategyExecutive/Board Changes
Ameriprise Financial Announces Retirement of Key Wealth Executive
Neutral
Feb 12, 2026
Ameriprise Financial, Inc. reported on February 12, 2026, that Joseph E. Sweeney, its President of Advice & Wealth Management Products & Service Delivery, will retire from the company on April 3, 2026. The leadership change affects a key role overseeing the firm’s advice and wealth management products and service operations, signaling an upcoming transition in management for this core business segment.
The most recent analyst rating on (AMP) stock is a Hold with a $530.00 price target. To see the full list of analyst forecasts on Ameriprise Financial stock, see the AMP 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.