Cohen & Steers crosses $100bn AUM on strong Q2 inflows
Cohen & Steers surpassed $100 billion in assets under management as a $1.3 billion surge in net inflows lifted the asset manager's second-quarter adjusted operating margin to 36.3%, signaling a recovery in investor demand for real estate and infrastructure.
Cohen & Steers reported adjusted earnings per share of $0.85 for the second quarter of 2026, advancing from $0.79 in the first quarter and $0.73 in the year-earlier period. Net income reached $44 million, representing an 8% sequential increase and an 18% jump compared to the second quarter of 2025. The results reflect a confluence of positive market performance and accelerating client demand.
The firm's assets under management climbed approximately 8% to surpass the $100 billion mark. This milestone was largely fueled by $1.3 billion in net inflows. Chief Financial Officer Amit Muni characterized the quarter as "one of the strongest flow quarters in our recent history." The capital was primarily directed into open-end funds, with U.S. real estate, preferred securities, and global listed infrastructure leading the demand.
For investors, the significance of these inflows lies in the operating leverage they unlock. Revenue grew 5% quarter-over-quarter to $152 million as higher average assets under management generated more fee income. Simultaneously, total operating expenses increased a more modest 3% to $97 million. Management attributed the expense rise primarily to higher incentive compensation accruals tied directly to the revenue growth.
This disparity between the top and bottom lines pushed the adjusted operating margin to 36.3%. It is a clear demonstration of the scalable economics of asset management, where new capital drives revenue without a proportional increase in fixed overhead.
The forward-looking indicators suggest this leverage can persist. Cohen & Steers currently holds a $1.6 billion institutional pipeline. Executives also pointed to structural growth drivers, specifically the firm's expanding ETF platform and SICAV fund business, which are successfully attracting international capital.
Management kept its expense guidance intact, signaling confidence in the current trajectory. The firm continues to project compensation and benefits at approximately 40% of revenue. It anticipates mid-single-digit growth in general and administrative expenses versus 2025, alongside a pro forma effective tax rate of 25% to 26%. Executives noted that fundamentals across real assets are improving, positioning the firm to capitalize on a broader recovery in real estate demand.
