Ameriprise Surges to Record $11.26 EPS, Raises Dividend 6% on Asset Growth

Ameriprise Financial (NYSE: AMP) delivered a standout first quarter with adjusted operating earnings per share jumping 19% year-over-year to a record $11.26, driven by sustained asset growth and strong client engagement across its wealth management platform.

Key Numbers

The wealth manager's adjusted operating earnings reached $1.064 billion in Q1 2026, up 12% from $950 million a year earlier. On a GAAP basis, net income per share soared 66% to $9.68 from $5.83, though this comparison benefited from more favorable market impacts on derivatives and market risk benefits versus the prior year.

Revenue momentum remained robust with adjusted operating net revenues climbing 11% to $4.8 billion, fueled by the company's expanding asset base. Total assets under management, administration and advisement grew 12% year-over-year to $1.7 trillion, with wrap assets in the core Advice & Wealth Management segment surging 16% to $664 billion.

The company's profitability metrics remained industry-leading. Pretax adjusted operating margin held strong at 28%, while return on equity excluding AOCI reached an exceptional 54.3% on an adjusted operating basis. The Advice & Wealth Management segment, which drives the bulk of earnings, posted a 30% pretax margin, up 150 basis points from the prior year.

Capital returns accelerated alongside earnings growth. Ameriprise returned $936 million to shareholders in the quarter, representing 88% of operating earnings. The board authorized a 6% dividend increase, marking another vote of confidence in the business model's durability.

What Management Said

CEO Jim Cracchiolo struck an optimistic tone while acknowledging market headwinds, stating that "Ameriprise delivered a strong start to the year, with significant revenue and earnings growth driven by the durability of our business and consistent execution of our strategy."

Cracchiolo emphasized the company's resilience amid volatility: "In an environment of heightened market volatility and uncertainty, clients remain highly engaged and well-served by our personalized advice, expert investment perspective and broad product range."

The CEO also highlighted strategic investments in technology and artificial intelligence capabilities, noting the company continues to "invest across the business with a clear long-term focus – further enhancing our strong client experience, solutions, technology and AI capabilities."

On capital strength, management reinforced their commitment to shareholder returns: "Our capital strength remains a clear differentiator. During the quarter, we returned 88% of operating earnings to shareholders and today announced an additional 6% increase in our quarterly dividend."

What to Watch

The Huntington National Bank partnership stands out as a significant growth catalyst. This deal will bring approximately 260 financial advisors and nearly $28 billion in combined advisory, brokerage and insurance assets to Ameriprise, potentially accelerating the company's already strong organic growth trajectory.

Advisor productivity metrics suggest continued momentum ahead. Adjusted operating net revenue per advisor reached a new high of $1.2 million on a trailing 12-month basis, up 10% year-over-year. The company added 61 experienced advisors in the quarter, though this was partially offset by departures related to the Comerica relationship termination.

Asset Management outflows improved markedly but remain a watchpoint. Total net outflows narrowed to $5.9 billion from $18.3 billion a year ago, with both retail and institutional channels showing improvement. The 68% reduction in outflows suggests stabilization, though returning to consistent inflows remains a key objective.

The Retirement & Protection Solutions segment saw earnings decline 12% to $190 million despite 10% sales growth, pressured by higher distribution expenses and continued outflows from variable annuities with living benefits. Management expects this segment to remain within target ranges over time.

Bank assets grew 6% to $25.5 billion with mid-single digit earnings growth, while cash sweep balances held steady at $29.4 billion. These metrics will be important to monitor as interest rate dynamics evolve through 2026.

Looking ahead, the company's full-year tax rate guidance of 20-22% provides visibility, while the sustained strength in wrap asset flows and advisor productivity suggest the earnings momentum has legs. The combination of organic growth, margin expansion, and aggressive capital returns positions Ameriprise favorably, though Asset Management flows and market volatility bear watching.

*StockCliff Research*