Ares Capital Corp (ARCC)
NASDAQ:ARCC
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Earnings Data
Report Date
Jul 28, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.47Last Year’s EPS
0.5Same Quarter Last Year
Strong Buy
Based on 8 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call balanced notable short-term market headwinds—primarily mark-to-market losses from spread widening, a QoQ decline in GAAP net income and a modest NAV decline—with multiple durable positives: strong liquidity (~$6 billion), active originations ($3.2 billion), diversified and healthy portfolio fundamentals (9% LTM EBITDA growth, low nonaccruals), access to debt capital (>$1.25 billion of financings) and dividend coverage (core EPS plus realized gains exceeded the dividend). Management emphasized conservative underwriting, portfolio management capabilities, and an independent review of AI risk in software that largely validated portfolio positioning. Given the strength of the balance sheet, funding access, and ongoing origination opportunities as spreads widen, the positives appear to outweigh the temporary valuation-related setbacks.Company Guidance
Strong Liquidity and Balance Sheet
Approximately $6.0 billion of available liquidity; total portfolio at fair value of $29.5 billion (stable QoQ, up from $27.1 billion a year ago, +~8.9% YoY). Net asset value totaled $14.1 billion ($19.59 per share). Accessed >$1.25 billion of incremental debt financing in Q1, including $750 million five-year unsecured notes (priced at T+180 bps, swapped to SOFR+172 bps) and a $500 million expansion of an SMBC facility (5 bps spread reduction).
Dividend Coverage and Taxable Spillover
Quarterly dividend of $0.48 per share maintained. Core EPS of $0.47 plus $0.15 per share of net realized gains = $0.62 of coverage, exceeding the dividend this quarter. Estimated taxable spillover of $988 million (approximately $1.38 per share) available for distribution in 2026.
Core Earnings and ROE
Core earnings per share of $0.47 in Q1 2026, representing an annualized ROE of 9.6% in a seasonally slow quarter for originations.
Active Originations and Repayments
Originated over $3.2 billion of new investment commitments in Q1 (70% to existing borrowers). Repayments (excluding Ivy Hill sales) were roughly 7% of the portfolio at cost, providing natural liquidity. Net realized gains in the quarter totaled approximately $114 million from four exits (mid-teens weighted average realized IRR).
Portfolio Quality and Diversification
Investments across 607 companies with average position size <20 bps, limiting idiosyncratic risk. Borrowers generated organic weighted average LTM EBITDA growth of ~9% (in line with ARCC's ten-year average and >2x the syndicated loan benchmark). Nonaccruals at fair value remained low at 1.2% of the portfolio.
Prudent Underwriting and Sector Positioning
Management emphasized conservative underwriting (cash-flow focus, low loan-to-value on software book ~41%) and portfolio management capabilities (50+ person portfolio management/restructuring team). Engaged an independent top-tier consulting firm to assess AI disruption risk in software portfolio.
Improving New Deal Economics
Management reported a market reset with wider spreads and better economics: new transactions reflecting approximately 50–75 bps of enhanced fees/spreads vs prior pricing; first-lien originations in Q1 saw ~20 bps QoQ spread increase and leverage down by nearly half a turn of EBITDA.
Long-Term NAV Growth and Ratings
Management cites long-term NAV growth: >10% over past five years and >30% since inception. ARCC is the highest rated BDC across the three major rating agencies with the longest ratings history in the sector.
ARCC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ARCC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 28, 2026 | $18.61 | $18.92 | +1.67% |
Feb 04, 2026 | $18.62 | $19.04 | +2.25% |
Oct 28, 2025 | $19.32 | $19.56 | +1.23% |
Jul 29, 2025 | $21.12 | $20.97 | -0.71% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Ares Capital Corp (ARCC) report earnings?
Ares Capital Corp (ARCC) is schdueled to report earning on Jul 28, 2026, Before Open (Confirmed).
What is Ares Capital Corp (ARCC) earnings time?
Ares Capital Corp (ARCC) earnings time is at Jul 28, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ARCC EPS forecast?
ARCC EPS forecast for the fiscal quarter 2026 (Q2) is 0.47.