Ameriprise Financial Tops Q4 Estimates, Announces Dividend Amid Strong Asset Growth
Ameriprise Financial Inc (NYSE:AMP) reported fourth-quarter financial results that exceeded Wall Street's expectations, driven by record asset levels and disciplined expense management. The financial services giant also declared its regular quarterly cash dividend, underscoring its commitment to shareholder returns.
Earnings and Revenue Performance
For the quarter ended December 31, 2025, Ameriprise posted adjusted operating earnings per diluted share (EPS) of $10.83. This result represents a significant 16% increase from the $9.36 reported in the same quarter a year ago and surpassed the analyst consensus estimate of $10.425.
The company's top-line performance was equally robust. Adjusted operating net revenues for the quarter reached $4.9 billion, marking a 10% year-over-year increase. This figure also came in ahead of the $4.78 billion analysts had projected.
Key quarterly financial highlights include:
- Adjusted Operating EPS: $10.83 (Actual) vs. $10.425 (Estimate) – a beat of $0.405.
- Adjusted Operating Net Revenue: $4.9 billion (Actual) vs. $4.78 billion (Estimate) – a beat of approximately $130 million.
- Full-Year 2025 Adjusted Operating EPS: $39.29, a 14% increase over the prior year.
Market Reaction and Capital Return
Despite the earnings beat, AMP shares were trading slightly lower in pre-market activity. This muted reaction could reflect a "sell the news" dynamic after a strong run or market focus on broader macroeconomic factors, as the company's fundamental performance was solid.
The company's capital return policy remains a cornerstone of its value proposition. Alongside the earnings, Ameriprise declared a regular quarterly cash dividend of $1.60 per common share, payable in February 2026. Furthermore, management highlighted that it returned $1.1 billion to shareholders in the fourth quarter alone, representing 101% of its adjusted operating earnings for the period. For the full year 2025, capital returns totaled $3.4 billion.
Segment Performance and Business Highlights
The earnings strength was broad-based across Ameriprise's core segments, fueled by continued asset growth.
Advice & Wealth Management delivered record pretax adjusted operating earnings of $926 million, up 13%. The segment benefited from strong client engagement, with total client assets growing 13% to a new high of $1.165 trillion. Client net inflows were a robust $13.3 billion for the quarter.
Asset Management saw pretax adjusted operating earnings rise 17% to $293 million. Assets under management and advisement increased 6% to $721 billion, supported by strong investment performance. The segment's net pretax adjusted operating margin expanded to 40.4%.
Retirement & Protection Solutions generated pretax adjusted operating earnings of $200 million. Sales in this segment increased 6% to $1.5 billion, reflecting sustained client demand for annuity and insurance products.
Chairman and CEO Jim Cracchiolo stated, “Ameriprise delivered a record fourth quarter with robust client activity, resulting in one of our best quarters for client inflows and strong asset growth. We generated all-time highs for revenue, earnings and EPS for both the quarter and the full year, and our return on equity continued to be best in class.”
Looking Ahead
While the press release did not provide specific quantitative financial guidance for the coming year, the company's operational momentum and strong balance sheet position it for continued growth. Analysts' current estimates project revenue of approximately $4.73 billion and EPS of $10.28 for the first quarter of 2026.
The company's outlook remains positive, supported by a record $1.7 trillion in total assets under management, administration, and advisement, excellent capital levels, and what management describes as a "best-in-class" adjusted operating return on equity of 53.2%.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the comprehensive data on the AMP earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
