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

T. Rowe Price Group (NASDAQ:TROW) released its quarterly earnings results on Friday. The asset manager reported $2.57 EPS for the quarter, topping analysts’ consensus estimates of $2.52 by $0.05, FiscalAI reports. T. Rowe Price Group had a return on equity of 20.60% and a net margin of 28.28%.The company had revenue of $1.91 billion for the quarter, compared to analysts’ expectations of $1.89 billion. During the same period in the prior year, the firm earned $2.24 earnings per share. The firm’s revenue was up 10.7% compared to the same quarter last year.

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 Down 6.3%

NASDAQ TROW opened at $111.75 on Friday. T. Rowe Price Group has a 52 week low of $85.22 and a 52 week high of $122.00. The firm has a 50 day moving average of $111.77 and a two-hundred day moving average of $102.15. The stock has a market capitalization of $23.94 billion, a PE ratio of 11.21, a price-to-earnings-growth ratio of 4.01 and a beta of 1.47.

T. Rowe Price Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 29th. Investors of record on Monday, June 15th were paid a $1.30 dividend. The ex-dividend date was Monday, June 15th. This represents a $5.20 dividend on an annualized basis and a yield of 4.7%. T. Rowe Price Group’s payout ratio is currently 55.73%.

Insider Activity at T. Rowe Price Group

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. DV Equities LLC acquired a new stake in shares of T. Rowe Price Group during the 4th quarter worth about $32,000. Quarry LP acquired a new position in T. Rowe Price Group in the third quarter valued at approximately $61,000. MUFG Securities EMEA plc purchased a new position in T. Rowe Price Group in the second quarter valued at approximately $63,000. Quadrant Capital Group LLC acquired a new stake in T. Rowe Price Group during the third quarter worth approximately $96,000. Finally, Geneos Wealth Management Inc. raised its holdings in T. Rowe Price Group by 22.5% during the second quarter. Geneos Wealth Management Inc. now owns 1,181 shares of the asset manager’s stock worth $114,000 after purchasing an additional 217 shares in the last quarter. 73.39% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting T. Rowe Price Group

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

• Positive Sentiment: Quarterly results exceeded expectations: T. Rowe Price reported second-quarter revenue of $1.91 billion, up 10.7% year over year, while adjusted EPS of $2.57 topped the $2.52 consensus estimate. T. Rowe Price Q2 Earnings Top Estimates on Higher Revenues and Record AUM
• Positive Sentiment: Assets under management reached a record: Ending AUM was approximately $1.893 trillion, and average AUM increased 15.7% from a year earlier, supporting higher advisory fees and revenue. The company also returned $441 million to shareholders through dividends and repurchases. T. Rowe Price Q2 Earnings and AUM Report
• Neutral Sentiment: Investor focus is on the earnings call and outlook: The quarterly earnings call provided additional context on flows, expenses and the firm’s growth initiatives, which may shape expectations for future asset gathering and profitability. T. Rowe Price Group Q2 2026 Earnings Call Transcript
• Negative Sentiment: Net client outflows remain a key concern: The company recorded approximately $6.5 billion in net outflows during the quarter, suggesting continued pressure on organic growth despite market-driven AUM gains.
• Negative Sentiment: Expenses increased substantially: Operating expenses rose 9.8% year over year to about $1.37 billion, limiting the benefit of stronger revenue and reinforcing concerns about cost control.
• Negative Sentiment: Options activity and broker sentiment were cautious: Put-option purchases were roughly 151% above average, while brokerages maintained a consensus “Reduce” recommendation, adding to near-term selling pressure. T. Rowe Price Consensus Reduce Recommendation

Analyst Ratings Changes

A number of brokerages recently commented on TROW. BMO Capital Markets raised their target price on T. Rowe Price Group from $98.00 to $110.00 and gave the company a “market perform” rating in a report on Monday, May 4th. The Goldman Sachs Group increased their price target on shares of T. Rowe Price Group from $90.00 to $92.00 and gave the stock a “sell” rating in a research report on Tuesday, June 30th. Morgan Stanley set a $116.00 price objective on shares of T. Rowe Price Group in a research note on Wednesday. Zacks Research raised shares of T. Rowe Price Group from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, July 15th. Finally, Keefe, Bruyette & Woods increased their target price on shares of T. Rowe Price Group from $107.00 to $120.00 and gave the stock a “market perform” rating in a report on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Reduce” and an average price target of $105.08.

T. Rowe Price Group Company Profile

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.