T. Rowe Price Group Inc

T. Rowe Price closed out the fourth quarter of 2025 with a modest earnings miss, as a hefty restructuring charge weighed on results and persistent client outflows continued to cloud the asset manager's growth story. The firm posted adjusted EPS of $2.44, falling just short of the $2.46 consensus estimate, while revenue of $1.93 billion trailed expectations by 4.00%, even as it climbed 6.0% year-over-year on the back of higher average assets under management. The headline drag came from a $148.80 million restructuring charge, largely tied to accelerated depreciation and impairment on owned real estate, bringing the full-year restructuring total to $177.30 million as the firm presses ahead with a broader expense realignment program. Net client outflows reached $25.50 billion in the quarter and $56.90 billion for the full year, with flows continuing to shift toward lower-fee products, compressing the investment advisory effective fee rate to 38.8 basis points from 40.5 a year ago. Looking ahead, T. Rowe Price guided its 2026 adjusted effective tax rate to a range of 24.00% to 27.00%, as management works to bring expense growth under tighter control.