StepStone Q3 Earnings Exceed Expectations

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: Feb 05 2026

0mins

STEP+2.8%

Should l Buy STEP?

Source: seekingalpha

Earnings Beat: StepStone's Q3 non-GAAP EPS of $0.65 surpassed expectations by $0.05, indicating a robust profitability trend that underscores its strong performance in the private fund sector.
Significant Revenue Growth: The company reported Q3 revenue of $586.51 million, reflecting a 73.0% year-over-year increase and exceeding forecasts by $191.59 million, showcasing substantial business expansion amid strong market demand.
Stock Price Reaction: Despite the strong earnings report, StepStone's shares fell by 0.29%, which may indicate market caution regarding future growth prospects, prompting investors to monitor subsequent market reactions closely.
Private Fund Access Initiative: StepStone's collaboration with Goldman Sachs and Carlyle to offer $10,000 private fund access expands its client base and enhances its competitive positioning in the market.

Trade with 70% Backtested Accuracy

Stop guessing "Should I Buy STEP?" and start using high-conviction signals backed by rigorous historical data.

Analyst Views on STEP

Wall Street analysts forecast STEP stock price to rise

6 Analyst Rating

4 Buy

2 Hold

0 Sell

Moderate Buy

Current: 43.140

Low

66.00

Averages

77.33

High

83.00

Current: 43.140

Low

66.00

Averages

77.33

High

83.00

Barclays

Benjamin Budish

Equal Weight -> Overweight

upgrade

$67 -> $55

2026-03-02

New

Reason

Barclays

Benjamin Budish

Price Target

$67 -> $55

AI Analysis

2026-03-02

New

upgrade

Equal Weight -> Overweight

Reason

Barclays analyst Benjamin Budish upgraded Stepstone Group to Overweight from Equal Weight with a price target of $55, down from $67. While it remains too early to determine the real AI impact to portfolio companies, Barclays lower business development company related earnings on lower flow assumptions and realization, the analyst tells investors in a research note. Barclays upgraded Stepstone, however, saying the company has less exposure to this trend. The share selloff since the end of January has created a more attractive entry opportunity, contends the firm.

Oppenheimer

Chris Kotowski

Outperform

maintain

$105 -> $104

2026-02-09

Reason

Oppenheimer

Chris Kotowski

Price Target

$105 -> $104

2026-02-09

maintain

Outperform

Reason

Oppenheimer analyst Chris Kotowski lowered the firm's price target on Stepstone Group to $104 from $105 and keeps an Outperform rating on the shares. The firm notes the company's adjusted net income in Q3 of 65c per share widely beat Opco of 57c and consensus of 60c. The beat vs. Oppenheimer's estimates was mainly driven by incentive fees of $207M vs. Opco estimate of $128M, contributing 8c of the beat.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for STEP

Unlock Now

About STEP

StepStone Group Inc. is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to its clients. The Company partners with its clients to develop and build private markets portfolios designed to meet their specific objectives across the private equity, infrastructure, private debt and real estate asset classes. These portfolios utilize several types of synergistic investment strategies with third-party fund managers, including commitments to funds (primaries), acquiring stakes in existing funds on the secondary market (secondaries) and investing directly into companies (co-investments). It provides its clients with tailored reporting packages, including customized performance benchmarks as well as compliance, administration and tax capabilities. The Company, through its subsidiaries, acts as the investment advisor and general partner or managing member to separately managed accounts and focused commingled funds.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Barclays Downgrades Blue Owl, Upgrades StepStone Amid AI Concerns

7 hours agoseekingalpha

Rating Changes: Barclays downgraded Blue Owl Capital (OWL) to Equalweight from Overweight while upgrading StepStone Group (STEP) to Overweight from Equalweight, reflecting concerns about the impact of AI fears on the private credit market, particularly on business development companies.
Slowing Inflows: Blue Owl's largest fund, OCIC, saw inflows decrease from approximately $600 million per month in November to $208 million in February, indicating a growing dependency on non-traded BDCs, which may lead to increased outflows in the future.
Redemption Pressure: Blue Owl experienced quarterly redemptions exceeding 5% of net asset value in Q4, translating to over $1 billion in outflows, with analysts suggesting that this trend could worsen due to software and AI-related concerns.
Market Opportunity for StepStone: StepStone has outperformed expectations in the wealth channel and is significantly less exposed to non-traded BDCs compared to peers, leading analysts to view this as an attractive entry point, with expectations for stable inflows into its wealth products.

Liberty All-Star Growth Fund January 2026 Monthly Update

Feb 14 2026Yahoo Finance

Investment Strategy Overview: The Liberty All-Star Growth Fund employs an all-cap growth investment style, combining three investment managers with distinct capitalization focuses—small, mid, and large-cap—to ensure portfolio diversity and risk management.
Monthly Performance Data: As of the end of January, the fund's net asset value (NAV) stood at $5.77, with a market price of $5.25, reflecting a 9.0% discount; however, the monthly performance rebounded by 0.71%, indicating the impact of market fluctuations.
Portfolio Changes: New holdings include companies like Arista Networks and Expedia, while positions in AMD and Bank of America were liquidated, demonstrating the fund's strategy of dynamically adjusting its portfolio to adapt to market changes.
Sector Distribution Analysis: The fund's portfolio shows a significant concentration in high-growth sectors, with Information Technology and Industrials comprising 26.7% and 25.4% respectively, indicating a strategic focus on capturing future growth opportunities in these industries.

StepStone Partners with Utmost to Expand Private Market Access

Feb 12 2026Newsfilter

Strategic Partnership: StepStone Group announces a partnership with Utmost to provide UK clients access to a comprehensive suite of private market investment strategies, including Private Equity, Venture Capital, Private Credit, and Infrastructure, aimed at enhancing client portfolio diversification and long-term financial outcomes.
Growing Market Demand: StepStone has tripled its assets under management (AUM) in the past 15 months, reflecting a sustained global demand for evergreen funds and new investment solutions, thereby solidifying its strong momentum in the private wealth business.
Client-Centric Approach: Utmost's Global Head of Sales and Marketing stated that as clients increasingly focus on private markets, this partnership will provide high-quality investment opportunities that support their wealth management goals, aligning with the flexibility and diversification needs of modern portfolios.
Policy Support: This collaboration not only addresses client needs but also supports broader government initiatives designed to encourage investment in unlisted equities and private markets, further promoting healthy market development.

StepStone Group Reports Record Q3 2026 Earnings and Fundraising

Feb 06 2026seekingalpha

Core Earnings Growth: StepStone Group reported core fee-related earnings (FRE) of $89 million in Q3 2026, a 20% increase year-over-year, demonstrating strong profitability amid an improving capital market environment, which is expected to drive future earnings growth.
Outstanding Fundraising Performance: The company added over $8 billion in assets under management (AUM) this quarter, totaling over $34 billion for the year, marking a record high and indicating StepStone's strong appeal and market position in the private equity sector.
Exceptional SPRING Fund Performance: The SPRING Evergreen fund achieved a 39% investment return over the past year, generating over $200 million in incentive fees, showcasing the company's success in high-return investments and further solidifying its market leadership.
Advancement of International Strategy: Approximately two-thirds of the inflows came from outside North America, indicating StepStone's capability to expand in global markets, and it plans to continue leveraging growth opportunities in international markets.