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

Key Points

• T. Rowe Price beat quarterly estimates: EPS was $2.57 versus the $2.52 consensus, while revenue reached $1.91 billion, up 10.7% year over year.
• Client flows remain a significant weakness: The asset manager reported $6.5 billion in net outflows and expects continued pressure from active-equity redemptions and portfolio shifts away from equities.
• Growth initiatives are gaining traction: ETF inflows reached $4.4 billion, while fixed income, alternatives, SMAs and lower-tracking-error strategies expanded; the company also maintains a $5.20 annual dividend, yielding about 4.6%.

T. Rowe Price Group (NASDAQ:TROW - Get Free Report) posted its quarterly earnings results on Friday. The asset manager reported $2.57 earnings per share for the quarter, beating the consensus estimate of $2.52 by $0.05, FiscalAI reports. T. Rowe Price Group had a net margin of 28.28% and a return on equity of 20.60%. The business had revenue of $1.91 billion during the quarter, compared to analysts' expectations of $1.89 billion. During the same quarter in the prior year, the company posted $2.24 EPS. The business's revenue for the quarter was up 10.7% on a year-over-year basis.

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

• Adjusted diluted EPS rose to $2.57 from $2.52 in Q1 and $2.24 a year ago, supported by higher average AUM and advisory revenue, though expenses increased.
• T. Rowe Price reported $6.5 billion of Q2 net outflows and expects flows to be more challenging in the second half due to continued active-equity redemptions, portfolio rebalancing away from equities, and a late-stage target-date pipeline gap.
• Growth areas continued to gain traction, including $4.4 billion of ETF inflows, expanding SMA offerings, positive fixed-income and alternatives flows, and approximately $200 billion in lower-tracking-error and integrated strategies that generated $16 billion of year-to-date inflows.
• The company expects full-year adjusted operating expenses, excluding carried interest, to increase 4% to 7% from 2025, reflecting market-driven costs and continued investment in ETFs, SMAs, alternatives, technology, and AI.
• Management highlighted strategic expansion through its Goldman Sachs private-markets alliance, late-stage venture capital, active ETFs including a new crypto product, and AI deployment across more than 130 solutions with over 70% associate adoption.

T. Rowe Price Group Stock Performance

Shares of NASDAQ TROW traded down $7.29 during trading on Friday, reaching $111.99. The stock had a trading volume of 2,972,119 shares, compared to its average volume of 2,219,976. The company has a market cap of $24.00 billion, a P/E ratio of 12.00, a PEG ratio of 4.26 and a beta of 1.47. T. Rowe Price Group has a fifty-two week low of $85.22 and a fifty-two week high of $122.00. The business's 50-day moving average price is $111.60 and its 200-day moving average price is $102.08.

T. Rowe Price Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 29th. Stockholders of record on Monday, June 15th were paid a $1.30 dividend. The ex-dividend date of this dividend was Monday, June 15th. This represents a $5.20 dividend on an annualized basis and a dividend yield of 4.6%. T. Rowe Price Group's payout ratio is presently 55.73%.

Insider Transactions at T. Rowe Price Group

In related news, VP Stephon A. Jackson sold 3,000 shares of the firm's stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $102.56, for a total transaction of $307,680.00. Following the completion of the transaction, the vice president directly owned 83,883 shares in the company, valued at $8,603,040.48. This trade represents a 3.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 1.60% of the company's stock.

Institutional Trading of T. Rowe Price Group

Institutional investors and hedge funds have recently bought and sold shares of the business. DV Equities LLC acquired a new position in shares of T. Rowe Price Group in the fourth quarter valued at approximately $32,000. Quarry LP acquired a new stake in T. Rowe Price Group during the 3rd quarter worth approximately $61,000. MUFG Securities EMEA plc purchased a new position in T. Rowe Price Group in the 2nd quarter valued at approximately $63,000. Quadrant Capital Group LLC purchased a new position in T. Rowe Price Group in the 3rd quarter valued at approximately $96,000. Finally, Geneos Wealth Management Inc. grew its stake in shares of T. Rowe Price Group by 22.5% in the second quarter. Geneos Wealth Management Inc. now owns 1,181 shares of the asset manager's stock worth $114,000 after acquiring an additional 217 shares in the last quarter. 73.39% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

TROW has been the topic of several analyst reports. Keefe, Bruyette & Woods lifted their price target on shares of T. Rowe Price Group from $107.00 to $120.00 and gave the company a "market perform" rating in a research report on Friday, July 10th. Barclays raised their target price on T. Rowe Price Group from $89.00 to $108.00 and gave the stock an "underweight" rating in a research note on Tuesday, July 14th. Evercore set a $121.00 target price on T. Rowe Price Group in a research report on Friday, July 10th. Zacks Research raised T. Rowe Price Group from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, July 15th. Finally, Jefferies Financial Group lowered their price target on T. Rowe Price Group from $107.00 to $91.00 and set a "hold" rating for the company in a report on Wednesday, April 8th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Reduce" and a consensus price target of $105.08.

Trending Headlines about T. Rowe Price Group

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

• Positive Sentiment: Second-quarter results exceeded expectations. T. Rowe Price reported adjusted earnings of $2.57 per share versus the $2.52 consensus estimate, while revenue reached $1.91 billion, above the expected $1.89 billion. Revenue increased 10.7% year over year, and EPS rose from $2.24 in the prior-year quarter. T. Rowe Price Q2 Earnings Top Estimates
• Positive Sentiment: Higher assets and shareholder returns supported the quarter. Ending assets under management were approximately $1.9 trillion, with average AUM up 15.7% year over year. The company returned $441 million to shareholders through dividends and stock repurchases, while net operating income increased 13.0%. T. Rowe Price Q2 Results
• Neutral Sentiment: Management is pursuing new growth avenues. The earnings discussion highlighted T. Rowe Price’s expansion into private markets and cryptocurrency-related opportunities. These initiatives could diversify long-term revenue but may also introduce execution, regulatory and market risks. T. Rowe Price Q2 2026 Earnings Call Transcript
• Negative Sentiment: Client flows remain a key concern. T. Rowe Price recorded $6.5 billion in net client outflows during the quarter. Continued withdrawals could pressure future fee revenue and offset the benefit of rising market values and AUM.
• Negative Sentiment: Options activity signals near-term caution. Traders purchased 3,137 put options, roughly 151% above average volume, indicating increased demand for downside protection or bearish exposure.
• Negative Sentiment: Brokerage sentiment is subdued. Analysts have assigned TROW a consensus “Reduce” recommendation, adding pressure after the earnings release. Consensus Reduce Recommendation

About T. Rowe Price Group

T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland, founded by Thomas Rowe Price Jr. in 1937. The company provides a broad range of investment products and services for individual investors, financial intermediaries, retirement plan sponsors and institutional clients. Its offerings are built around active investment management and in-house research across equity, fixed income and multi-asset strategies, reflecting a long history as a research-driven asset manager.

The firm's product lineup includes mutual funds, separate accounts, collective investment trusts, target-date and target-risk funds, and managed account solutions, as well as services for defined contribution and defined benefit retirement plans.

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