Ameriprise Financial, Inc. is a holding company, which engages in providing financial planning, asset management, and insurance services to individuals, businesses, and ...
Ameriprise Financial, Inc. (NYSE: AMP) is a diversified financial services company headquartered in Minneapolis, Minnesota. Founded in 1894 by John Tappan, the company has evolved over more than 130 years to become a leader in financial planning and advice. Its mission is to help clients feel more confident about their ...Ameriprise Financial, Inc. (NYSE: AMP) is a diversified financial services company headquartered in Minneapolis, Minnesota. Founded in 1894 by John Tappan, the company has evolved over more than 130 years to become a leader in financial planning and advice. Its mission is to help clients feel more confident about their financial future, and it achieves this through a comprehensive suite of products and services delivered via a network of financial advisors and institutional channels. As of 2024, the company employs approximately 13,600 people worldwide.
Business Segments: Ameriprise operates through four primary segments. The Advice & Wealth Management segment offers financial planning, full-service brokerage, and advisory services to retail clients through a network of advisors. The Asset Management segment, known as Columbia Threadneedle Investments, provides investment management, advice, and products to retail, high net worth, and institutional clients globally. The Retirement & Protection Solutions segment delivers annuities, life insurance, and disability income insurance through RiverSource. The Corporate & Other segment manages legacy closed blocks and corporate-level investments, including capital held in subsidiaries.
Products and Services: Ameriprise provides a wide range of financial solutions, including retirement planning, investment management, insurance protection, and banking products. Its advisors are known for delivering personalized financial plans that address clients' goals, risk tolerance, and life stages. The company also offers digital tools and online services to complement the advisory relationship.
Financial Performance: Ameriprise has demonstrated strong financial metrics. With a market capitalization of approximately $49.7 billion, the company has consistently delivered robust profitability. Its return on equity (TTM) is around 61.7%, reflecting efficient use of shareholder capital. The company maintains a healthy dividend policy, with a dividend yield of approximately 1.2% and a payout ratio near 80%, indicating commitment to returning value to shareholders. Its price-to-earnings ratio is around 13.1, suggesting reasonable valuation relative to earnings. The firm’s revenue and earnings have shown resilience, with a net profit margin of about 19.9% and an operating cash flow of $3.5 billion (per share $35.37), highlighting operational strength.
Key People and Leadership: The company is led by Chairman and CEO James M. Cracchiolo, who has been at the helm for many years, guiding strategic direction and growth. Walter S. Berman serves as CFO, and Jeff Noddle is a director. The leadership team emphasizes integrity, client focus, and long-term value creation.
History and Spin-off: Originally part of American Express, Ameriprise was spun off as an independent company in September 2005, listing on the New York Stock Exchange. This spin-off was one of the largest in U.S. history at the time. Since then, the company has expanded its asset management capabilities through acquisitions like Columbia Management (2010) and has solidified its position as a top financial advisory firm.
Corporate Culture and Values: Ameriprise is known for 'putting clients first,' a principle that has guided its actions since 1894. The company is recognized for its ethical standards and has been acknowledged as a top workplace. It invests in technology and talent to enhance client experiences and operational efficiency.
Future Outlook: With a strong capital position and a diversified business model, Ameriprise is well-positioned to navigate evolving market conditions. It continues to focus on organic growth, strategic acquisitions, and expanding its digital capabilities. The company sees opportunities in the growing demand for retirement and wealth management services as demographics shift.
Overall, Ameriprise Financial is a stalwart in the financial services industry, combining a legacy of trust with modern innovation to serve a broad clientele effectively.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$18.9B
+5.2%
+2.6%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$3.6B
+4.8%
+21.6%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+50.4%
-1.0%
-11.2%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+25.5%
-0.3%
+21.5%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+18.8%
-0.4%
+18.6%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$2.9B
-54.9%
+562.6%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+15.3%
-57.1%
+545.8%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
89.5%
-14.5%
+9.6%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
25.84x
+17.0%
-2.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Welcome to the Second Quarter 2026 Earnings Call. My name is Rebecca, and I will be your operator for today's call. [Operator Instructions] As a reminder, the conference is being recorded. I will now turn the call over to Stephanie Rabe. Stephanie, you may begin.
Stephanie Rabe : Welcome to Ameriprise Financial's Second Quarter Earnings Call. On the call with me today are Jim Cracchiolo, Chairman and CEO; and Walter Berman, Chief Financial Officer. Following their remarks, we'd be happy to take your questions. Turning to our earnings presentation materials that are available on our website. On Slide 2, you will see a discussion of forward-looking statements. Specifically, during the call, you'll hear references to various non-GAAP financial measures, which we believe provide insight into our company's operations. Reconciliation of non-GAAP numbers to their respective GAAP numbers can be found in today's materials and on our website at ir.ameriprise.com. Some statements that we make on this call may be forward-looking, reflecting management's expectations about future events and overall operating plans and performance. These forward-looking statements speak only as of today's date, and involve a number of risks and uncertainties. A sample list of factors and risks that could cause actual results to be materially different from forward-looking statements can be found in our second quarter 2026 earnings release, our 2025 annual report to shareholders and our 2025 10-K report. We make no obligation to publicly update or revise these forward-looking statements. On Slide 3, you see our GAAP financial results at the top of the page for the second quarter. Below that, you see our adjusted operating results, which management believes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitates a more meaningful trend analysis. Many of the comments that management makes on the call today will focus on adjusted operating results. And with that, I'll turn it over to Jim.
Jim Cracchiolo : Good morning, and thanks for joining our earnings call. Ameriprise delivered another great quarter, thanks to the strength of our team and the firm, our complementary businesses and the way we engage clients. We're performing well in a positive but dynamic market environment. That includes the impact of rates, inflation and geopolitical volatility more broadly. And we're all seeing AI in the headlines a lot more these days. . Markets move, rates change and technology is always evolving. But the need for our trusted advice strong solutions and service is only increasing in a world that is getting more complex. And that's why I feel so good about the business. As you saw, our financial performance continues to be excellent. Revenues grew 13% to nearly $5 billion, driven by strong asset growth and client adviser engagement. And we're delivering that level of revenue and a nice mix of fee, transaction …
