Ameriprise (AMP) Q1 2026 earnings review
Record Earnings Driven by Wealth Management, Despite Flow Headwinds
Ameriprise delivered a stellar quarter, driving Adjusted Operating EPS up 19% YoY to a record $11.26. The Advice & Wealth Management (AWM) segment remains the undisputed engine, expanding its operating margin to a robust 30.0%. Underneath the surface, a massive rotation is underway in the institutional channel: the company terminated its relationship with Comerica Bank (triggering short-term flow deceleration as those advisors depart) but secured a major new partnership with Huntington National Bank, which will soon add ~$28 billion in assets. While Asset Management flows reverted to negative and Retirement & Protection Solutions (RPS) earnings dropped, the firm's overall fee engine is throwing off enough cash to hike the dividend by 6% and achieve a staggering 54.3% Return on Equity.
🐂 Bull Case
The Advice & Wealth Management segment achieved a 30.0% pretax operating margin, up 150 basis points YoY. Record advisor productivity ($1.16M per advisor TTM) points to highly efficient scale.
Winning the Huntington National Bank retail investment program secures approximately 260 advisors and nearly $28 billion in assets, establishing a major new growth vector.
🐻 Bear Case
Retirement & Protection Solutions operating earnings declined 12% YoY to $190M. Distribution expenses jumped 7% to $762M alongside continued outflows from legacy variable annuities.
The termination of the Comerica Bank relationship accelerated advisor departures, causing AWM total client net flows to plunge 59% YoY to $4.2B.
⚖️ Verdict: 🟢
Bullish. The core fee engine (AWM) is expanding margins and powering EPS growth, easily overpowering the transient flow headwinds from the Comerica exit and Asset Management leakages. A 54%+ ROE highlights supreme capital efficiency.
Key Themes
Advice & Wealth Management Profit Engine
Accelerating. The AWM segment is performing exceptionally well. Adjusted operating revenues rose 14% to $3.18 billion, while pretax earnings surged 20% to $951 million. A portion of this included a $25M benefit from the Comerica termination, but even excluding this, core distribution earnings increased in the mid-30% range. Advisor productivity continues its multi-year upward trajectory, reaching $1.16 million over the trailing 12 months.
Institutional Partner Rotation: Comerica Out, Huntington In
During Q3 2025 earnings calls, analysts flagged M&A risks regarding the Comerica relationship ($15B AUM). This quarter, Ameriprise officially terminated the relationship. This triggered elevated advisor departures, causing a sharp deceleration in AWM Total Client Net Flows (-59% YoY) and Wrap Net Flows (-31% YoY). However, management aggressively filled the void by winning the Huntington National Bank program, which will inject ~$28B in assets and 260 advisors into the ecosystem, more than replacing the lost Comerica base.
Asset Management Flows Reversing
Reversing. After turning slightly positive in 25Q4 (+1.9B), Asset Management total net flows reverted to outflows of $(5.9)B. However, looking at the YoY picture, the trajectory is improving. A year ago in 25Q1, outflows were a staggering $(18.3)B heavily weighted by the Lionstone institutional exit. This quarter, institutional outflows were contained to $(1.2)B, but retail and model delivery (-$3.9B) remain stubborn leakages.
Retirement & Protection Solutions Margin Squeeze
Decelerating. The RPS segment was the sole laggard, with pretax adjusted operating earnings dropping 12% YoY from $215M to $190M. Management cited higher distribution expenses driven by strong sales volumes, combined with ongoing outflows from legacy variable annuities with living benefits. Total expenses for the segment climbed 7% to $762M.
Aggressive and Disciplined Capital Return
Stable. The firm returned $936 million to shareholders during the quarter via share repurchases ($784M) and dividends ($152M). This represented 88% of adjusted operating earnings, entirely in line with their historical 85-90% target range. To reinforce this capital discipline, they raised the quarterly dividend by 6%.
Macro Backdrop: Derivative and Market Impacts
GAAP Net Income per share ($9.68) significantly lagged Adjusted Operating EPS ($11.26) due to an unfavorable $378 million market impact on the valuation of derivatives and market risk benefits. While lower than the $497 million charge in the prior year quarter, these accounting asymmetries continue to cause significant GAAP earnings volatility.
Other KPIs
Accelerating. Up from 52.0% a year ago and consistently remaining above 50% for several quarters. This best-in-class metric underscores the immense capital efficiency of Ameriprise's fee-based wealth management model.
Stable upward trajectory. Wrap assets surged 16% YoY, driven primarily by market appreciation and steady underlying organic growth. These assets represent recurring fee streams and act as the core valuation anchor for the stock.
Stable high profitability. Despite ongoing flow challenges, disciplined expense management allowed the Asset Management segment to expand its net pretax adjusted operating margin by 110 basis points YoY, up from 42.7% in 25Q1.
Guidance
Stable. The Q1 2026 actual rate came in at 20.2%, sitting comfortably at the low end of the guided range. This represents a normalization compared to the 17.5% operating tax rate experienced in 25Q1.
Key Questions
Huntington vs Comerica Transition Timeline
With the Comerica relationship terminated, what is the expected duration of the resulting advisor departure drag on AWM flows, and exactly when do you expect the $28B in Huntington assets to officially onboard and offset this?
Asset Management Flow Stabilization
Institutional outflows have improved dramatically compared to the Lionstone exit a year ago, but retail net flows remain stuck in negative territory (-$4.2B this quarter). What explicit catalysts are needed to reverse retail leakage in the second half of 2026?
RPS Expense Dynamics
RPS earnings fell 12% YoY due to elevated distribution expenses tied to strong sales. Is this elevated expense ratio the new normal run-rate for the segment, or a temporary timing mismatch as production ramps up?