T. Rowe Price Group, Inc. Earnings Recaps
Q2 2026
Aug 4, 2026
T. Rowe Price shares fell 6.3% following the quarter as investors reacted to ongoing net outflows and a cautious outlook pointing to continued pressure on fundamental active equity, overshadowing modest positive inflows in select strategies.
Key takeaways
- Assets under management ended at $1.9 trillion with $6.5 billion of net outflows in Q2, reflecting persistent pressure in fundamental active equity.
- Positive inflows in May and June driven by a large defined contribution win and sub-advisory gains, partially offsetting early-quarter outflows.
- Growth areas include integrated equity and fixed income strategies combining fundamental and quantitative research, totaling $200 billion AUM and adding $16 billion net inflows year-to-date.
- Active ETFs and SMAs are expanding, with 34 ETFs managing $30 billion and 43 SMAs managing $20 billion.
- Management signaled ongoing challenges in fundamental equity but highlighted progress in AI integration and new product launches without providing encouraging guidance for near-term recovery.
Q1 2026
May 2, 2026
T. Rowe Price shares rose modestly by 2.9% following the Q1 print, reflecting a neutral market reaction to results that showed stable performance, persistent equity outflows, and incremental progress in new growth areas. The lack of a decisive move indicates investors saw little surprise either positively or negatively in the firm's update.
Key takeaways
- Adjusted EPS of $2.52 was up 3% sequentially and 13% year-on-year, aided by higher revenue from increased average AUM, lower expenses, a lower tax rate, and a smaller share count.
- AUM ended at $1.71 trillion with $13.7 billion in total net outflows; equity and mutual fund outflows continued, partially offset by positive flows into multi-asset, fixed income, alternatives, ETFs ($2.8B inflows), and SMAs ($962M inflows).
- Fund performance was mixed: while long-term performance (3-, 5-, 10-year) among equity and target date products was strong on an asset-weighted basis, the 1-year numbers remained challenged.
- The target date series and ETFs stood out, with the franchise posting $4.9 billion in net inflows and ETF AUM surpassing $25 billion, while eight ETFs crossed the $1 billion threshold.
- Revenue for Q1 topped $1.8 billion (up 5% y/y), but investment advisory fees fell quarter-over-quarter, reflecting a lower effective fee rate and two fewer days in the period.