Companies /Financial Services

T. Rowe Price Group Inc

NASDAQ: TROW Asset Management
$104.16
▲ $1.32 (+1.28%) today
Markets closed · 5:41am ET

Q1 2026 Earnings

Reported Apr 30, 2026, 7:02am ET · SEC source
$2.52
Miss +7.39%
EPS · est. $0.00
$1.9B
Beat +0.22%
Revenue · est. $1.9B
−4.3%
Trailing market
TROW vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−2%0+2%+4%Apr 29May 7report 7:02am ETearnings+2.3%+1.2%
−2%0+2%+4%Apr 29May 7earnings+2.3%+1.2%
TROW +1.2%S&P 500 +2.3%
0+3%+6%Apr 29May 7report 7:02am ETearnings+4.5%+1.2%
0+3%+6%Apr 29May 7earnings+4.5%+1.2%
TROW +1.2%NASDAQ +4.5%
+2.40%
Day of report
+0.52%
Next session
+0.69%
One week
+1.39%
30 days

S&P 500 over the same 30 days: +5.69%.

Did TROW Beat Earnings? Q1 2026 Results

T. Rowe Price Group delivered a stronger-than-expected first quarter for fiscal 2026, with adjusted diluted EPS of $2.52 clearing the $2.35 consensus estimate by 7.39% as disciplined expense management and a favorable tax rate helped drive a 13.0% year-over-year earnings gain. Revenue rose 5.3% from a year ago to $1.86 billion, edging past the $1.85 billion consensus by 0.22%, supported by higher average assets under management of $1.78 trillion. The headline figures, however, masked some underlying pressure; ending AUM slipped to $1.71 trillion as market depreciation of $52.20 billion and net client outflows of $13.70 billion weighed on balances during the quarter. A $10.00 million restructuring charge reflected the firm's continuing effort to contain expense growth and realign resources, with headcount down 7.1% year over year to 7,507 associates. Multi-asset advisory fees were a relative bright spot, climbing 12.0% to $509.10 million. Looking ahead, management guided its full-year 2026 effective tax rate to a range of 23.0% to 26.0%.

Key Takeaways
  • Higher average AUM of $1.78 trillion (up 9.6% YoY) driving investment advisory fee growth
  • Multi-asset advisory fees grew 12.0% YoY, the fastest-growing segment
  • Effective fee rate declined 1.6 bps YoY to 38.4 bps due to mix shift toward lower-fee products
  • Headcount reduction of 7.1% YoY to 7,507 associates supporting expense discipline
  • Lower effective tax rate of 23.7% (adjusted) vs 24.7% in Q1 2025 from state tax settlements and valuation allowance reversals
  • Non-operating losses of $48.3 million vs $70.7 million income in Q1 2025 due to weaker market returns

“With the recent volatility and broadening of markets, our active management approach positions us to take advantage of the opportunities this climate brings. Our teams are advancing innovative strategies, new vehicles, and compelling solutions to meet the evolving needs of clients.”

T. Rowe Price CEO, on the earnings call

Forward Guidance & Outlook

T. Rowe Price 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%. The firm continues to execute a broad and ongoing expense management program to reduce expense growth and realign resources to support investment in existing and future capabilities.

TROW YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$600.0M$1.2B$1.8B$1.8B$1.9BRevenue$596.3M$680.5MOperating Income$490.5M$498.2MNet Income
$0$600.0M$1.2B$1.8BRevenueOperating IncomeNet Income

TROW Revenue by Segment

Equity Advisory$974.7M+1.6%
Equity
Multi-Asset Advisory$509.1M+12.0%
Multi-Asset
Fixed Income Advisory$111.8M+7.9%
Fixed Income
Fixed Income, Including Money Market Advisory
Alternatives Advisory$87.4M+8.0%

Figures from SEC filings and company reports. Not investment advice.