Schroders (LON:SDR) Announces Quarterly Earnings Results

Schroders (LON:SDR) announced its quarterly earnings data on Thursday. The company reported GBX 36.60 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Schroders had a return on equity of 8.65% and a net margin of 12.81%.

Here are the key takeaways from Schroders’ conference call:

• Schroders’ board unanimously recommends Nuveen’s all-cash offer of GBP 6.12 per share (GBP 5.90 cash + up to GBP 0.22 dividends), implying ~17x 2025 adjusted EPS and a ~34% premium to yesterday’s close, giving shareholders immediate cash certainty.
• Management says the combination creates a globally scaled asset manager with combined AUM > $1.8 trillion, complementary capabilities (Nuveen fixed income, Schroders public markets), retained London non‑US HQ, and commitments to preserve the Schroders brand and teams, which they believe accelerates growth materially.
• Schroders delivered a strong 2025 operational performance — operating profit +25%, EPS +29%, record AUM GBP 824bn (+6%), GBP 11.2bn net inflows and >70% of assets outperforming over 1/3/5 years — supporting the board’s valuation view.
• Management highlighted execution risks: Schroders Capital fundraising and conversion of fee‑earning dry powder (GBP 4.9bn) need to accelerate, joint‑venture outflows (~GBP 5bn, mainly China) and wealth net new business (2.7% run rate) lag targets, which could constrain organic growth.
• The transformation program is progressing — GBP 75m in-year savings (≈GBP 100m annualized), ~10% headcount reduction, supplier base down 12%, and cost‑to‑income improved to 71% with a target below 70% by 2027 — bolstering operating leverage.

Schroders Trading Up 28.6%

Shares of Schroders stock traded up GBX 130.50 on Thursday, hitting GBX 587.50. The stock had a trading volume of 1,147,357,875 shares, compared to its average volume of 58,690,957. The stock has a 50 day moving average of GBX 424.25 and a 200 day moving average of GBX 398.47. The firm has a market capitalization of £9.11 billion, a P/E ratio of 26.35, a PEG ratio of 1.28 and a beta of 1.17. Schroders has a twelve month low of GBX 283.40 and a twelve month high of GBX 599.50. The company has a debt-to-equity ratio of 12.95, a quick ratio of 4.32 and a current ratio of 4.90.

Wall Street Analyst Weigh In

SDR has been the subject of a number of research reports. Jefferies Financial Group reissued a “hold” rating and set a GBX 420 price objective on shares of Schroders in a research report on Friday, January 9th. Citigroup lowered their price target on Schroders from GBX 435 to GBX 430 and set a “buy” rating on the stock in a research report on Friday, October 24th. Royal Bank Of Canada upped their price objective on Schroders from GBX 435 to GBX 440 and gave the stock a “buy” rating in a report on Thursday, October 30th. UBS Group reaffirmed a “buy” rating and set a GBX 455 price objective on shares of Schroders in a research note on Friday, October 17th. Finally, JPMorgan Chase & Co. restated an “overweight” rating on shares of Schroders in a research note on Friday, January 9th. Four research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Schroders presently has a consensus rating of “Moderate Buy” and an average price target of GBX 413.86.

Trending Headlines about Schroders

Here are the key news stories impacting Schroders this week:

• Positive Sentiment: Schroders agreed to be sold to Nuveen for about $13.5 billion and the Schroder family is reported to be exiting — this takeover/strategic-sale report is the primary catalyst for today’s strong rally because it implies a takeover premium and immediate value crystallisation for shareholders. Read More.
• Positive Sentiment: Heavy market attention from international press and live market coverage increased buy-side focus on overseas names, amplifying volume and momentum in SDR. Significant flows and headlines can accelerate price moves on a takeover story. Read More.
• Positive Sentiment: Insider purchases by senior staff (small lots bought at ~GBX 467) were reported this week — while transaction sizes are modest, insider buying during a takeover period can be read as a signal of confidence or alignment with shareholder value. Read More.
• Neutral Sentiment: Schroders published quarterly results showing GBX 36.60 EPS, ROE ~8.65% and net margin ~12.8% — the results appear solid but the takeover news is the dominant price driver today. Review the Q4 release for underlying operating trends. Read More.
• Neutral Sentiment: Analyst coverage prior to today showed a mix of Buy/Hold ratings and a consensus price target below today’s intraday level — analysts will likely re-rate the stock once deal terms are confirmed, which could produce upgrades or target resets. Read More.
• Negative Sentiment: Deal risks remain: regulatory approvals, shareholder votes, and integration/financing conditions could delay or alter terms; any negative developments on those fronts would reverse today’s move. Read More.

About Schroders

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe.