T. Rowe Price Group (NASDAQ:TROW) Posts Earnings Results, Beats Expectations By $0.05 EPS

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

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 Price Performance

TROW stock opened at $111.75 on Friday. The stock has a market capitalization of $23.94 billion, a P/E ratio of 11.98, a P/E/G ratio of 4.28 and a beta of 1.47. The business has a 50-day moving average of $111.77 and a 200-day moving average of $102.15. T. Rowe Price Group has a fifty-two week low of $85.22 and a fifty-two week high of $122.00.

T. Rowe Price Group Announces Dividend

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

Insider Transactions at T. Rowe Price Group

In other T. Rowe Price Group news, VP Stephon A. Jackson sold 3,000 shares of the business’s stock in a transaction that occurred 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 sale, the vice president owned 83,883 shares in the company, valued at approximately $8,603,040.48. The trade was a 3.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 1.60% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Woodline Partners LP boosted its stake in shares of T. Rowe Price Group by 41.0% during the 1st quarter. Woodline Partners LP now owns 18,809 shares of the asset manager’s stock worth $1,728,000 after buying an additional 5,467 shares during the last quarter. Focus Partners Wealth raised its holdings in T. Rowe Price Group by 10.6% during the first quarter. Focus Partners Wealth now owns 13,054 shares of the asset manager’s stock worth $1,199,000 after acquiring an additional 1,250 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position in T. Rowe Price Group by 44.8% during the second quarter. EverSource Wealth Advisors LLC now owns 1,546 shares of the asset manager’s stock valued at $149,000 after purchasing an additional 478 shares during the last quarter. Jump Financial LLC bought a new position in T. Rowe Price Group in the second quarter valued at approximately $931,000. Finally, Daiwa Securities Group Inc. grew its stake in T. Rowe Price Group by 5.4% in the second quarter. Daiwa Securities Group Inc. now owns 33,245 shares of the asset manager’s stock valued at $3,208,000 after purchasing an additional 1,703 shares in the last quarter. Institutional investors and hedge funds own 73.39% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on TROW. Jefferies Financial Group decreased their target price on T. Rowe Price Group from $107.00 to $91.00 and set a “hold” rating for the company in a research note on Wednesday, April 8th. Zacks Research raised T. Rowe Price Group from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, July 15th. Keefe, Bruyette & Woods lifted their price objective on T. Rowe Price Group from $107.00 to $120.00 and gave the company a “market perform” rating in a report on Friday, July 10th. TD Cowen decreased their price objective on T. Rowe Price Group from $108.00 to $107.00 and set a “hold” rating for the company in a research report on Monday, July 20th. Finally, Morgan Stanley set a $116.00 target price on T. Rowe Price Group in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus price target of $105.08.

T. Rowe Price Group News Summary

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

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.