Private markets investment firm StepStone Group (NASDAQ: STEP) reported calendar Q3 2026 (fiscal Q2 2027) results exceeding the market’s revenue expectations, with revenue up 70% year on year to $773.1 million. Its non-GAAP profit of $0.66 per share was 18.8% above analysts’ consensus estimates.
For more on StepStone Group, read our free full research report.
StepStone Group (STEP) Q3 CY2026 highlights:
- Assets under management $261 billion vs analysts’ consensus estimates of $251.7 billion (24.8% year-on-year growth, 3.7% beat)
- Revenue $773.1 million (70% year-on-year growth)
- Pre-tax profit $48.03 million (6.2% margin)
- Adjusted EPS $0.66 vs analysts’ consensus estimates of $0.56, according to S&P (18.8% beat)
- Market capitalization $3.82 billion
Revenue growth
Reviewing a company’s long-term revenue performance reveals insights into its quality. Any business can report a good quarter or two, but many enduring ones grow for years. StepStone Group’s revenue grew at a strong 26.9% compounded annual growth rate over the last five years. Its growth surpassed the average financials company and shows its offerings resonate with customers.
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. StepStone Group’s annualized revenue growth of 37.3% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, StepStone Group reported year-on-year revenue growth of 174%, and its revenue of $773.1 million beat Wall Street’s consensus estimates by 133%.
Assets under management
Assets under management, or AUM, is central to a financial firm’s investment division, representing all client capital under its stewardship. Management fees on this AUM create reliable, recurring revenue that maintains stability even when investment performance struggles, though prolonged poor returns can eventually affect asset retention and growth.
StepStone Group’s AUM has grown at an annual rate of 20.5% over the last five years, better than the broader financials industry but slower than its total revenue. Over the last two years, its AUM growth accelerated to 21.4% annually. Fundraising or short-term investment performance was a net detractor to the company over this shorter period since assets grew slower than total revenue. Still, assets are worth tracking but warrant limited emphasis because they ebb and flow with the market.
In Q3, StepStone Group’s AUM was $261 billion, beating analysts’ consensus estimates by 3.7%. That was 24.8% higher than the same quarter last year.
Key takeaways from StepStone Group’s Q3 results
StepStone Group delivered a solid quarter, with revenue and assets under management both exceeding Wall Street’s consensus estimates by wide margins. Shares remained flat at $42.69 immediately after the results.
Is StepStone Group a buy at its current price? That decision requires considering its valuation, business quality and latest quarterly results. For more on StepStone Group, read the full research report here (it’s free).
