Germany's DWS Q2 revenue falls 6% sequentially, net income drops
Germany's DWS Q2 revenue falls 6% sequentially, net income drops
Overview
German asset manager's Q2 revenue fell 6% q-o-q
Q2 net income attributable to shareholders fell 10% quarter-on-quarter
Company reached record assets under management and strong net inflows in Q2
Outlook
DWS reaffirms expectations outlined in its 2025 Annual Report, assuming a supportive market environment
Result Drivers
PERFORMANCE FEE TIMING - Revenue fell q-o-q due to an expected timing effect from infrastructure performance fees recorded in Q1
NET INFLOWS AND MARKET GAINS - Higher management fees were driven by strong net inflows, especially in passive products and Xtrackers, and favorable market developments
COST INCREASES - Costs rose 5% q-o-q due to higher general and administrative expenses from business growth and increased share price, while compensation costs declined
Company press release: ID:nEQ7Sszz6a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Miss* | EUR 773 mln | EUR 778.72 mln (2 Analysts) |
Q2 Net Income |
| EUR 237 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy."
Wall Street's median 12-month price target for DWS Group GmbH & Co KgaA is €68.00, about 5.2% below its July 28 closing price of €71.75
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)