T. Rowe Price Q3 2026: EPS Beats Expectations Despite $28B Outflows
As seen on the 24/7 Wall St. homepage on October 29, 2026.
Clients pulled a net $28.3 billion out in the quarter, yet market appreciation lifted average assets under management 9.5% and both EPS and revenue beat expectations. The effective fee rate slipped to 37.8 basis points from 39.1 a year ago, so growth in assets is buying less revenue per dollar.
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Adjusted diluted EPS of $2.86 beat expectations even as clients pulled a net $28.3 billion in the quarter, most of it out of equity strategies.
Market appreciation carried the quarter: average assets under management climbed 9.5% year over year, lifting advisory fee revenue even as the effective fee rate compressed.
Capital allocation-based income rose to $59.9 million, helped by carried interest from a recently launched late-stage venture fund. Operating income rose 10.2% as GAAP expenses fell.
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Management guided to a full-year 2026 effective income tax rate of 23.5% to 25.5%, with CEO Rob Sharps pointing to ETF, separately managed account, and model portfolio growth. Whether the firm slows outflows while defending its fee rate is the Q4 question.
T. Rowe Price has now beaten consensus EPS estimates in six of the past seven quarters, and this quarter marks the highest reported EPS in that run.
Mentioned: TROW