T. Rowe Price Group (NASDAQ:TROW) Posts Earnings Results

T. Rowe Price Group (NASDAQ:TROW) issued its quarterly earnings data on Thursday. The asset manager reported $2.86 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.63 by $0.23, FiscalAI reports. T. Rowe Price Group had a return on equity of 20.91% and a net margin of 29.26%. The company had revenue of $2 billion during the quarter, compared to analysts’ expectations of $1.98 billion. During the same period last year, the business earned $2.81 earnings per share. The business’s revenue was up 5.9% on a year-over-year basis.

Here are the key takeaways from T. Rowe Price Group’s conference call:

• Net outflows remained elevated at $28.3 billion in Q3, driven by equity strategies, mutual funds, and a $7.6 billion multi-asset outflow that included a large target-date plan redemption. Management expects Q4 flows to improve sequentially, but still remain pressured by active equity and mutual fund trends.
• Investment performance improved across several areas, with more than 50% of fund assets outperforming peers over one-, three-, and 10-year periods. Fixed income remained particularly strong, with 74% to 85% of assets outperforming over the reported time horizons.
• The ETF franchise continued to gain momentum, generating $3.8 billion of Q3 inflows and reaching $33.8 billion in AUM, up from $6.9 billion two years ago. The planned acquisition of F/m Investments is expected to further strengthen T. Rowe Price’s fixed-income, ETF, and SMA capabilities.
• Earnings benefited from higher average AUM, with adjusted diluted EPS increasing to $2.86 from $2.57 in Q2 and $2.81 a year earlier. Adjusted net revenue rose 5.3% year over year to $2.0 billion, while carried interest increased substantially to $63.1 million.
• Management is investing in longer-term growth through SMAs, customized models, retirement solutions, strategic partnerships, and AI-enabled workflows. Executives expect AI to improve investment research and operational efficiency over the next 12–24 months, but acknowledged that measurable benefits will take time to emerge.

T. Rowe Price Group Stock Up 1.6%

NASDAQ:TROW traded up $1.68 during mid-day trading on Thursday, reaching $105.67. 1,312,679 shares of the company were exchanged, compared to its average volume of 2,068,086. T. Rowe Price Group has a 12 month low of $85.22 and a 12 month high of $122.00. The company has a fifty day moving average of $105.93 and a 200 day moving average of $103.72. The stock has a market cap of $22.54 billion, a PE ratio of 10.57, a PEG ratio of 3.05 and a beta of 1.45.

T. Rowe Price Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 29th. Investors of record on Tuesday, September 15th were given a dividend of $1.30 per share. The ex-dividend date was Tuesday, September 15th. This represents a $5.20 annualized dividend and a yield of 4.9%. T. Rowe Price Group’s dividend payout ratio is 52.16%.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the stock. Barclays cut their price target on shares of T. Rowe Price Group from $103.00 to $102.00 and set an “underweight” rating for the company in a report on Wednesday, October 14th. UBS Group initiated coverage on shares of T. Rowe Price Group in a research note on Wednesday, October 7th. They set a “neutral” rating and a $107.00 price objective on the stock. TD Cowen dropped their price objective on shares of T. Rowe Price Group from $110.00 to $109.00 and set a “hold” rating for the company in a report on Monday, October 12th. Weiss Ratings upgraded shares of T. Rowe Price Group from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, September 4th. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $109.00 target price on shares of T. Rowe Price Group in a report on Monday, August 3rd. One investment analyst has rated the stock with a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $104.23.

Insider Buying and Selling at T. Rowe Price Group

In other news, VP Joshua Nelson sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $111.82, for a total transaction of $1,118,200.00. Following the transaction, the vice president directly owned 71,328 shares in the company, valued at approximately $7,975,896.96. This represents a 12.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 1.60% of the company’s stock.

T. Rowe Price Group News Roundup

Here are the key news stories impacting T. Rowe Price Group this week:

• Positive Sentiment: Earnings and revenue beat estimates: Q3 2026 adjusted earnings were $2.86 per share, above the $2.63 consensus estimate and up from $2.81 a year earlier. Revenue reached approximately $2.0 billion, exceeding the $1.98 billion forecast and rising 5.9% year over year. T. Rowe Price Group Reports Third Quarter 2026 Results
• Positive Sentiment: Profitability remained strong: T. Rowe Price reported a 20.91% return on equity and a 29.26% net margin, supporting the investment case for the asset manager despite a challenging operating environment. T. Rowe Price Earnings Call
• Positive Sentiment: Wealth-management expansion: The company is adding more than 50 wealth-management positions, signaling continued investment in a distribution channel that could broaden future growth and diversify its business. T. Rowe Price Group Adds Over 50 Wealth Management Roles
• Neutral Sentiment: Valuation remains relatively low: TROW trades at approximately 10.6 times earnings, which may appeal to value-oriented investors, although the valuation reflects concerns about long-term asset-growth and flow trends.
• Negative Sentiment: Assets under management declined: The quarterly revenue and earnings beats occurred even as AUM dipped, highlighting continued sensitivity to market performance and client flows. Net outflows and rising costs remain key risks to earnings growth. T. Rowe Price Q3 Earnings, Revenue Beat Even as AUM Dips

T. Rowe Price Group Company Profile

T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland. Founded in 1937 by Thomas Rowe Price Jr., the company provides investment strategies and advisory services to individual investors, retirement plans, financial intermediaries, institutions and other clients.

The company offers a range of actively managed and multi-asset investment products, including mutual funds, exchange-traded funds, separately managed accounts and other portfolio solutions.