T. Rowe Price Group Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.97%.
Did TROW Beat Earnings? Q2 2026 Results
T. Rowe Price Group posted a mixed but broadly solid second quarter for fiscal 2026, beating on earnings while falling just short on the top line as record assets under management helped underpin growth. Adjusted diluted EPS came in at $2.57, edging past the $2.52 consensus estimate by 2.05%, while net revenues of $1.91 billion rose 10.7% year-over-year but trailed the $1.92 billion analyst expectation by a narrow 0.55%. The headline driver was a 15.7% rise in average AUM to $1.84 trillion, propelled by $190.20 billion in net market appreciation that lifted ending AUM to a record $1.89 trillion, even as $6.50 billion in net client outflows remained a persistent concern. Encouragingly, the firm saw positive client flows in May and June, lending support to management's confidence in growth initiatives across ETFs and separately managed accounts. With the effective tax rate for full-year 2026 guided to a range of 23% to 26%, and adjusted operating expenses growing at a measured 4.9%, T. Rowe Price appears focused on disciplined cost management as it navigates ongoing pressure in fundamental active equity strategies.
- Record $1.9 trillion in ending AUM, up 12.9% year-over-year
- Average AUM increased 15.7% year-over-year to $1.84 trillion
- Multi-asset advisory fees grew 16.1% YoY, the fastest-growing segment
- Net market appreciation of $190.2 billion during the quarter
- Positive client flows in May and June
- Non-operating income of $369.1 million driven by investment gains and consolidated investment products
“We ended the quarter with a record $1.9 trillion in assets under management and positive flows in May and June reflected client demand in areas where we are investing for growth. We continue to expand our ETF and SMA business and advance our strategic partnerships. While fundamental active equity remains under pressure, I am confident that the progress we are making positions us to deliver long-term value for clients and stockholders.”
T. Rowe Price CEO, on the earnings call
Forward Guidance & Outlook
The firm estimates its effective tax rate for full year 2026, on both a U.S. GAAP and adjusted basis, will be in the range of 23.0% to 26.0%. Management is continuing a broad, ongoing expense management program to reduce expense growth and realign resources. While fundamental active equity remains under pressure, the firm is investing for growth in ETFs, SMAs, and strategic partnerships.
TROW YoY Financials
TROW Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.