Ameriprise Financial Reports 9% Revenue Growth and 57% Net Income Increase in Q1 2026

Ameriprise Financial, Inc. reported a significant increase in its financial performance for the first quarter of 2026, with total revenues reaching $4.886 billion, a 9% increase from $4.481 billion in the same period last year. The company's net income also rose by 57% to $915 million, compared to $583 million in the prior year. This growth was primarily driven by a 13% increase in management and financial advice fees, which totaled $2.944 billion, reflecting market appreciation and continued net inflows into wrap accounts.

The company experienced notable changes in its operational metrics compared to the previous fiscal period. Total assets under management, administration, and advisement increased by 11% to $1.668 trillion as of March 31, 2026, up from $1.495 trillion a year earlier. This growth was attributed to a $91.5 billion increase in Advice & Wealth Management assets, driven by equity market appreciation and net inflows, as well as a $40.2 billion increase in Asset Management assets. However, the company faced net outflows in its Asset Management segment, which partially offset these gains.

Strategically, Ameriprise has continued to focus on enhancing its product offerings and expanding its market presence. The company repurchased 1.6 million shares of its common stock during the first quarter at an average price of $478.93 per share, with $1.8 billion remaining under its share repurchase authorization. Additionally, Ameriprise announced a quarterly dividend of $1.70 per share, reflecting its commitment to returning value to shareholders.

Operationally, the company reported a decrease in banking and deposit interest expenses, which fell by 42% to $74 million, primarily due to lower balances and average crediting rates. Distribution expenses increased by 10% to $1.773 billion, driven by higher advisor compensation linked to increased transactional activity. The effective tax rate for the quarter was 20.0%, up from 15.1% in the prior year, largely due to higher pretax income.

Looking ahead, Ameriprise Financial remains optimistic about its growth trajectory, with management targeting adjusted operating earnings per diluted share growth of 12% to 15% and an adjusted operating return on equity of over 30%. The company continues to navigate a complex economic environment, focusing on leveraging its core capabilities to enhance shareholder value while managing market risks associated with interest rates and equity price fluctuations.