Ameriprise Financial Q1 Earnings Call Highlights

• Strong quarter and capital returns: Ameriprise reported adjusted operating revenues up 11% to $4.8 billion and adjusted operating EPS up 19% to a record $11.26, with AUM rising 12% to $1.7 trillion and management returning 88% of operating earnings while targeting buybacks of 85–90% and raising the dividend 6%.

• Mixed flows and Comerica headwind: Wrap net inflows were $6 billion (total client flows $4.2 billion) but overall flows were “lighter” amid cautious clients and higher advisor departures, and Ameriprise expects accelerated transfers of about $18 billion tied to the Comerica relationship through Q3.

• Growth initiatives and productivity gains: The firm signed a Huntington Bank deal to add roughly $28 billion and ~260 advisors, is embedding AI into advisor workflows to boost efficiency, and saw advisor productivity rise 10% to a record $1.2 million while asset management margins reached 44%, above target.

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Ameriprise Financial (NYSE:AMP) reported what Chairman and CEO Jim Cracchiolo described as a “strong start to the year” for the first quarter of fiscal 2026, pointing to double-digit revenue and earnings growth despite “ongoing market volatility and economic uncertainty contributing to a more cautious client behavior.” Management emphasized the benefits of the company’s diversified model, continued advisor productivity gains, and an active approach to capital return.

Cracchiolo said adjusted operating revenues rose 11% to $4.8 billion, while adjusted operating EPS increased 19% to a record $11.26. He also highlighted return on equity rising to “more than 54%,” and assets under management, administration and advisement increasing 12% to $1.7 trillion, driven by net inflows and market appreciation.

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Chief Financial Officer Walter Berman said the quarter produced an operating margin of 28% and that Ameriprise returned 88% of operating earnings to shareholders through dividends and share repurchases. Berman added the balance sheet remained “exceptionally strong,” with $2.3 billion in excess capital and $2.3 billion in holding company available liquidity.

In Advice & Wealth Management, Cracchiolo said total client assets grew 12% year-over-year to $1.1 trillion, with wrap assets up 16% to $664 billion. He noted wrap net inflows were $6 billion during the quarter, although management described overall flows as “lighter” due to cautious client behavior and “some lumpiness in recruiting and terminations.”

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Berman reported adjusted operating net revenues in wealth management increased 14% to $3.2 billion, with fee-based and transaction revenues rising 17% on higher client assets and activity. He said bank revenues increased 6% on business growth and expanded lending products, while revenues from cash sweep and certificates declined. Adjusted operating expenses increased 12%, including distribution expenses up 14%, which Berman said reflected advisor compensation rising in line with the revenues advisors generated.

Pre-tax adjusted operating earnings for the segment increased 20% to $951 million. Berman said Comerica exercised an option for early termination of its relationship with Ameriprise, resulting in a one-time $25 million “make-whole payment.” Excluding that benefit, he said earnings still increased 17%.

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On flows, Berman reported total client flows of $4.2 billion and wrap flows of $6 billion. He attributed the quarter’s flow variability to a combination of cautious client behavior, a more aggressive recruiting environment that “drove higher advisor departures,” and accelerated departures tied to the Comerica relationship after Comerica’s acquisition.

In the Q&A, management said Comerica-related outflows began in the fourth quarter and should continue to accelerate in the second and third quarters, with transfers expected to be complete by the end of the third quarter. After an analyst asked for confirmation, management agreed the total assets associated with Comerica were about $18 billion, while also noting it was difficult to predict quarterly timing.

Cracchiolo reiterated Ameriprise’s view that organic growth is “built, not bought,” and Berman said the company would continue evaluating recruiting and retention decisions based on profitability and risk-return tradeoffs, particularly as recruiting deals “exceed what we believe is a balanced risk-return approach.”

Advisor productivity remained a bright spot. Cracchiolo said productivity rose 10% to a record $1.2 million per advisor, while transactional activity increased 10%. Berman also said total client cash was $86 billion and “essentially flat,” with sweep balances at $29.4 billion, down slightly from the prior quarter in line with seasonal tax patterns.

Ameriprise highlighted expansion in its institutional channel. Cracchiolo said the company signed a multi-year agreement to become the retail investment program provider for Huntington Bank, a relationship expected to add approximately 260 advisors and $28 billion in assets, with onboarding beginning later in the year. In response to analyst questions, management said the selection process took over a year and that the company is targeting most of the asset movement to occur in the fourth quarter.

Cracchiolo also discussed continued investment in technology and advisor tools, describing an integrated platform connecting CRM, eMeeting, advice insights, and workflows, with “embedded AI and automation.” In the Q&A, he framed AI as an extension of a long-running technology strategy rather than a standalone initiative, with AI embedded in advisor workflows such as meeting preparation, advice, follow-up, and business planning. He said the goal is improved efficiency and more time for advisors to focus on client relationships, and added the company expects to introduce more AI agents over time. When asked to quantify benefits, he said eMeeting “takes away hours of work within an advisor practice every week,” though the company has not extrapolated those gains into broader metrics.

On products, management said Signature Wealth UMA—launched mid-last year—was seeing “positive early asset movement and engagement,” with further capability expansion planned, including SMAs and a broader strategy set. Cracchiolo said bank assets exceeded $25 billion, with continued strength in pledge lending, and he noted the company recently introduced additional banking products including HELOCs and checking accounts.

In Asset Management, Cracchiolo said AUM increased 8% year-over-year to $706 billion, and that net outflows improved to $5.9 billion. He noted gross retail sales in North America rose 26%, while EMEA retail flows improved but were impacted by geopolitical volatility. He also said the ETF platform surpassed $10 billion in AUM, the company remained a top 10 SMA provider with positive flows, and alternatives strategies in technology and healthcare hedge funds showed “strong performance and sales momentum.”

Berman reported asset management operating earnings rose 13% to $273 million on asset growth and the impact of transformation initiatives. Revenues increased 8% to $910 million, with the underlying fee rate stable around 47 basis points. Expenses rose 5%, with G&A up 4% due to volume-related expenses and unfavorable foreign exchange translation. Segment margin reached 44%, above Ameriprise’s targeted range of 35% to 39%. In the Q&A, management said transformation efforts were continuing and noted that back-office transformation “has not worked its way through the numbers yet,” with a substantial portion of outsourcing conversion expected later in the year. Berman said asset management G&A should track “in the range of neutral or a small negative.”

For Retirement & Protection, Berman said pre-tax adjusted operating earnings were $190 million, reflecting higher distribution expenses tied to strong sales and continued outflows from variable annuities with living benefits, partially offset by higher equity markets. He said the company continues to expect earnings over time to be “in the $800 million range per year.”

On capital deployment, management reiterated a target of buying back 85% to 90% of operating earnings and said it would consider moving toward the high end of that range depending on valuation. Berman said Ameriprise repurchased 1.6 million shares during the quarter and that the board approved a 6% increase in the quarterly dividend.

Ameriprise Financial, Inc is a diversified financial services company headquartered in Minneapolis, Minnesota. The firm provides a range of advice-based wealth management, asset management and insurance products to individual and institutional clients. Its business model centers on delivering financial planning and investment advice through a network of financial advisors alongside proprietary product offerings designed to meet retirement, protection and accumulation needs.

Core products and services include comprehensive financial planning and advisory services, managed investment portfolios, retirement planning solutions, annuities and life insurance products.

The article “Ameriprise Financial Q1 Earnings Call Highlights” was originally published by MarketBeat.