AI Takeaway
AMP delivered strong Q1 FY2026 results with revenue rising 9.0% YoY to $4.886B and net income surging 56.9% to $915M, though operating cash flow declined sharply by 72.8% to $459M.
Revenue
$4.89B
++9.04% YoY
EPS (Basic)
$9.81
++65.71% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
AMP grew revenue by 9.0% YoY to $4.886B in Q1 FY2026, while net income jumped 56.9% to $915M, reflecting significant improvement in profitability and operating leverage during the quarter.
Source: Source: 10-Q Income Statement
Basic EPS rose 65.7% YoY to $9.81 and diluted EPS increased 66.0% to $9.68, outpacing net income growth and suggesting share count reduction from an accelerated buyback program ($874M in Q1 FY2026 vs. $730M prior year).
Source: Source: 10-Q Income Statement & Cash Flow Statement
Operating cash flow fell sharply by 72.8% YoY to $459M from $1.686B, a notable divergence from reported net income of $915M, which may reflect working capital changes, timing of client flows, or other balance sheet movements typical in financial services.
Source: Source: 10-Q Cash Flow Statement
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Upgrade to unlockAMP carries a debt-to-equity ratio of approximately 28.7x, with total liabilities of $178.2B against stockholders' equity of only $6.2B. While this leverage level is common in financial services, it amplifies sensitivity to credit market disruptions or unexpected liability increases.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $11.26 versus the $10.31 analyst consensus — a +9.2% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.89B | $4.48B | +9.04% |
Net Income | $915M | $583M | +56.95% |
EPS (Basic) | $9.81 | $5.92 | +65.71% |
EPS (Diluted) | $9.68 | $5.83 | +66.04% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $184.45B | $179.06B | +3.01% |
Total Liabilities | $178.24B | $173.63B | +2.65% |
Stockholders' Equity | $6.21B | $5.43B | +14.49% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $459M | $1.69B | -72.78% |
Investing Cash Flow | $-669M | $-1.74B | +61.57% |
Financing Cash Flow | $-1.55B | $-488M | -216.80% |
Dividends Paid | $148M | $144M | +2.78% |
Share Buybacks | $874M | $730M | +19.73% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 18.7% | — | — |
ROE | 14.7% | — | — |
ROA | 0.5% | — | — |
Debt to Equity | $28.692 | — | — |
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AMP delivered strong Q1 FY2026 results with revenue of $4.886B (up 9.0% YoY) and net income of $915M (up 56.9% YoY). Diluted EPS surged 66.0% to $9.68, partly boosted by share buybacks of $874M during the quarter.
AMP's operating cash flow fell 72.8% YoY to $459M in Q1 FY2026, despite net income of $915M. This significant gap between earnings and cash generation is likely due to working capital changes or timing of client fund flows, which are common in financial services businesses.
AMP returned over $1.0B to shareholders in Q1 FY2026, including $874M in share buybacks (up 19.7% YoY) and $148M in dividends paid (up 2.8% YoY). This level of capital return exceeded the company's operating cash flow of $459M for the period.
Key risks include AMP's very high debt-to-equity ratio of approximately 28.7x, the sharp 72.8% decline in operating cash flow relative to net income, and the sustainability of aggressive capital returns that exceeded operating cash flow. Market sensitivity of fee-based revenue is also a concern if equity or fixed income markets deteriorate.
AMP's earnings health looks strong with net income up 56.9% and a net margin of ~18.7%, but cash flow health is a concern with operating cash flow down 72.8% to $459M. The balance sheet carries very high leverage at 28.7x debt-to-equity, which is typical for financial services but leaves limited margin for error.