Ameriprise's AI-Powered Advisor Productivity and Disciplined Recruiting Set It Apart
Q2 2026: EPS +22%, ROE 55%, asset management margin breaks out — and the moat is technology.
AMP · Earnings Call · 2026-07-23
The AI Edge
Ameriprise delivered another strong quarter: adjusted operating EPS of $11.07 (up 22% y/y), revenue growth to $4.9B, and a best-in-class ROE of 55%. But the most compelling part of the call was the quantification of AI-driven productivity gains. As Jim Cracchiolo explained, advisers using e-meeting automation, meeting summarization, and copowerpremium are reclaiming over 30 hours per week.This isn't a new bet—the firm has long framed AI as an extension of its integrated technology platform. “We view AI as an extension of our total technology strategy that we have been building for many years,” — Jim Cracchiolo, Chairman and Chief Executive Officer · 2026-04-23 Jim said in April. What's new is the pace of adoption: roughly 6,000 advisers are already using the insights tools, and adviser productivity reached a record $1.2M per adviser, up 12% y/y.For example, on average, e-meeting automation saves advisers 10 to 20 hours per week. Meeting summarization helps give back 5 to 10 hours per week and copowerpremium saves another 2.5 hours per week. So practices using these 3 solutions can go in more than 30 hours per week in productivity saves.
Recruiting Discipline and the Comerica/Huntington Pivot
In a market where rivals are paying up to 8x trailing revenue (or more) to attract advisers, Ameriprise is deliberately holding the line. “I would say we find that we are attracting people because when they come to us, when they join or even when they look at what we have, the service, the technology, the support, they actually say it's not very good from where they are.” — Jim Cracchiolo, Chairman and CEO · 2026-07-23 The firm added 79 experienced advisers in the quarter, and its pipeline is growing. But the quarter also featured a major strategic transition on the institutional side: the loss of Comerica (which will exit $19B by end of Q3) and the pending onboarding of Huntington Bank in Q4, which will bring ~260 advisers and $28B in assets. As CFO Walter Berman noted, “We have the capacity to grow this platform,” and the firm is actively pursuing additional financial institution partnerships. This pivot underscores core earnings resilience even as flow headlines are muddied by the Comerica tailwind.Asset Management Margin Breakout
A standout was the Asset Management segment, where pretax margins reached 43%—well above the firm's 35-39% target range. That's a direct result of transformation initiatives, strong performance (75% of funds above median on a 3-year basis), and momentum in active ETFs and SMAs. The segment's revenue grew 14% to $947M, with fee rates stable at ~47bps. Management argues the margin is sustainable: “So as looking at the margin in AWM, Yes, that is certainly sustainable from that standpoint.” — Walter Berman, Chief Financial Officer · 2026-07-23 Confidence reflects ongoing back-office transformation and a focus on profitable flows.Capital Return and Balance Sheet Strength
Ameriprise returned 91% of operating earnings to shareholders in the quarter, including $874M in buybacks at an average price of $459. The balance sheet remains exceptional: 23.4% operating margin, $2.1B in excess capital, and $2.8B in holding-company liquidity. The firm's 55% ROE is best-in-class among financials.Why It Matters
The stock has risen 24.5% over the past 90 days, and the story is clear: Ameriprise is compounding earnings by using AI to upgrade its existing adviser force, refusing to overpay for inorganic growth, and letting its Asset Management margin exceed targets. As Jim reminded the Street, the approach is deliberate.With a near-record pipeline and the Huntington onboarding ahead, the firm is well positioned to navigate both risk-on and risk-off regimes.We feel good about it. Remember, we're generating this on a consistent basis across our entire business.