T. Rowe Price Group (NASDAQ:TROW) Announces Quarterly Earnings Results, Beats Estimates By $0.05 EPS

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

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

T. Rowe Price Group stock traded down $7.53 during trading hours on Friday, hitting $111.75. 5,188,191 shares of the stock were exchanged, compared to its average volume of 2,237,771. The stock has a market capitalization of $23.94 billion, a P/E ratio of 11.98, a P/E/G ratio of 4.26 and a beta of 1.47. T. Rowe Price Group has a 12 month low of $85.22 and a 12 month high of $122.00. The business’s 50-day moving average is $111.60 and its two-hundred day moving average is $102.08.

T. Rowe Price Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 29th. Shareholders of record on Monday, June 15th were given 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 55.73%.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Keefe, Bruyette & Woods raised their price objective 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. Barclays upped their target price on shares of T. Rowe Price Group from $89.00 to $108.00 and gave the company an “underweight” rating in a research note on Tuesday, July 14th. Weiss Ratings upgraded shares of T. Rowe Price Group from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, July 2nd. TD Cowen lowered their price objective on T. Rowe Price Group from $108.00 to $107.00 and set a “hold” rating on the stock in a research note on Monday, July 20th. Finally, The Goldman Sachs Group increased their target price on T. Rowe Price Group from $90.00 to $92.00 and gave the stock a “sell” rating in a report on Tuesday, June 30th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, T. Rowe Price Group presently has an average rating of “Reduce” and an average price target of $105.08.

Insider Activity

In other news, VP Stephon A. Jackson sold 3,000 shares of T. Rowe Price Group stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $102.56, for a total value of $307,680.00. Following the completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 1.60% of the company’s stock.

Institutional Investors Weigh In On T. Rowe Price Group

Hedge funds and other institutional investors have recently bought and sold shares of the business. State Street Corp grew its holdings in shares of T. Rowe Price Group by 0.3% during the fourth quarter. State Street Corp now owns 14,159,797 shares of the asset manager’s stock worth $1,449,680,000 after purchasing an additional 45,530 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its position in T. Rowe Price Group by 1.8% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 8,073,846 shares of the asset manager’s stock worth $826,600,000 after buying an additional 143,109 shares in the last quarter. Invesco Ltd. lifted its position in T. Rowe Price Group by 3.9% during the 4th quarter. Invesco Ltd. now owns 3,520,858 shares of the asset manager’s stock worth $360,465,000 after buying an additional 131,438 shares in the last quarter. Morgan Stanley grew its holdings in T. Rowe Price Group by 16.0% during the 4th quarter. Morgan Stanley now owns 3,443,322 shares of the asset manager’s stock worth $352,528,000 after acquiring an additional 476,219 shares during the last quarter. Finally, First Trust Advisors LP grew its holdings in T. Rowe Price Group by 126.5% during the 4th quarter. First Trust Advisors LP now owns 3,280,854 shares of the asset manager’s stock worth $335,894,000 after acquiring an additional 1,832,231 shares during the last quarter. 73.39% of the stock is owned by institutional investors and hedge funds.

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

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.