Apollo Global Management Trades at 11X with 10% FY26 EPS Growth
Apollo Global Management projects 10% FY26 EPS growth to $9.25 per share, while trading at an 11X forward P/E and yielding 1.91%. The firm’s significant software and SaaS lending exposure underpins both high-yield potential and increased default risk as sector pressures rise.
1. Valuation and Earnings Outlook
Apollo Global Management forecasts FY26 EPS of $9.25 per share, reflecting a 10% increase from prior estimates. Shares trade at an 11X forward P/E multiple and yield 1.91%, signaling investor appetite for its high-yield private credit strategies amid stable rate expectations.
2. Software Lending Exposure and Risk Profile
Apollo is a leading direct lender to software and SaaS companies, a segment where analysts warn default rates could climb toward 13% under AI-driven disruption and refinancing strain. This concentration supports attractive yields but also amplifies sensitivity to sector downturns and liquidity shifts.