StepStone rises 10.8% after quarterly results show record fee-related earnings

What happened

StepStone (STEP) rose 10.8% on November 6, 2026, after reporting quarterly results that beat estimates and showed record fee-related earnings, because of those results. The company said it completed its strongest 12-month fundraising period, driven by growth in managed accounts and private wealth funds, which boosted assets and revenue. Zacks Investment Research and MarketBeat summarized the quarter’s top- and bottom-line metrics and compared them with prior-year figures.

How big was the move

The stock closed at $47.45 after it opened 18.1% above the previous close. Trading volume was 2.3 times its 20-day average and the session’s move measured 3.7 times a typical daily move for this stock. The stock’s change on the day was 10.9 percentage points better than the Financial Services sector median, which fell 0.1% on the day, while the S&P 500 rose 0.3%. Over the last five sessions, the stock rose 9.8% even as the S&P 500 fell 2.7%.

The technical picture

The stock traded 9.7% above its 20-day moving average and 4.0% above its 50-day moving average, while remaining 2.5% below its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index (14 days) was 59, in a neutral range between 30 and 70. StepStone was 39.0% below its 52-week high and rose 8.1% over one month and 2.8% over three months, but over one year the stock fell 24.3%, leaving it 32.8 percentage points behind the S&P 500. Volatility was 47% annualized over 60 days, a reading higher than 74% of its own readings over five years, which underscores the stock’s tendency for larger swings.

Fundamentals and valuation

For the four quarters through September 30, 2026, StepStone reported revenue of $2.33 billion, which grew 51.6% from a year earlier and accelerated from growth of 48.5% one quarter earlier. Gross margin expanded to 61.5% from 6.5% a year earlier, while operating margin was 25.4% compared with 74.6% a year earlier. Diluted earnings per share for the period were $-3.93. Return on invested capital was 17.4%, and share count increased by 4.8% over one year. The stock traded at 19.4 times expected earnings on a price to forward earnings basis.

The figures show a company with strong revenue growth and materially improved gross margins, likely reflecting higher fee-related earnings tied to fundraising success. At the same time, the negative diluted earnings per share over the trailing year and the increase in share count point to remaining profitability and capital-structure considerations for investors. The price to forward earnings of 19.4 times expected earnings places a valuation premium that appears tied to growth expectations among analysts and investors.

Earnings and analyst expectations

StepStone’s last report, dated November 5, 2026, showed earnings per share of $0.66 against $0.55 expected, 19.1% above estimates. That beat marked one consecutive quarter beating estimates, and the average surprise over the last four reports was 8.0% above estimates. The company’s typical two-day reaction after recent reports was a fall of 2.2%, but the session in question produced a strong positive move because earnings were released at this session, which coincided with the fundraising and fee-related earnings disclosure.

Analysts’ consensus price target was $62.38, 31.5% above the closing price, based on eight analysts with a rating. Eighty-eight percent of ratings were Buy or Strong Buy, and the consensus rating was Buy. Those projections and the concentrated Buy sentiment help explain why the stock attracted heavy buying after the quarter; the market appears to be pricing in continued fee-related earnings strength and fundraising momentum.

What to watch

• Next report: February 4, 2027
• Last report: November 5, 2026: earnings per share of $0.66 against $0.55 expected, 19.1% above estimates
• Consensus price target: $62.38, 31.5% above the closing price
• Trading volume: 2.3 times its 20-day average on November 6, 2026
• Price to forward earnings: 19.4 times expected earnings