TROW earnings analysis
What we found in TROW's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
T. Rowe Price reported Q1 2026 earnings with revenue of $1.857 billion, a 5.3% increase year-over-year, slightly surpassing expectations. However, diluted EPS of $2.23 missed the consensus estimate of $2.35, although it showed a modest increase compared to Q1 2025. Management pointed to strong average assets under management as a core revenue driver, while expressing concerns over net cash outflows and increased market volatility impacting performance.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth
- Revenue increased to $1.857 billion, up 5.3% from $1.764 billion in Q1 2025.
- Diluted EPS Increase
- Reported diluted EPS rose to $2.23, a 3.7% increase from $2.15 in Q1 2025.
- Strong Net Operating Income
- Net operating income reached $680.5 million, up 14.1% year-over-year from $596.3 million.
- Increase in Average AUM
- Average assets under management expanded by 9.6%, from $1.620 trillion in Q1 2025 to $1.776 trillion.
- Rise in Capital Allocation Income
- Capital allocation-based income rose significantly to $28.1 million, from a loss of $1.2 million in Q1 2025.
- Improved Operating Margin
- Operating margin improved to 36.6% in Q1 2026, up from 33.8% in Q1 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Net Cash Outflows
- T. Rowe Price experienced net cash outflows of $13.7 billion, contributing to a decline in AUM.
- Market Depreciation Impact
- Market depreciation accounted for $52.2 billion of the $65.9 billion decrease in AUM since the end of 2025.
- Pressure on Effective Fee Rates
- Annualized effective fee rate declined by 4% from 40 bps in Q1 2025 to 38.4 bps in Q1 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.23
- Operating margin
- 36.6%
- Segment
- Equity: $974.7M
- Segment
- Fixed Income: $111.8M
- Segment
- Multi-asset: $509.1M
- Segment
- Alternatives: $87.4M
What they said about what is next.
No specific guidance provided.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 13, 2026
- T. Rowe Price’s 2025 10-K emphasizes multi-year strategic initiatives to grow retirement, alternatives, and select global markets while aligning expense growth with anticipated revenue. Assets under management rose to…
- 10-Q · August 1, 2025
- T. Rowe Price reported Q2 2025 net revenues of $1,723.3 million (down 0.6% year-over-year) and GAAP diluted EPS of $2.24 (up $0.13, or 6.2%, versus Q2 2024). Assets under management ended the quarter at $1,676.8…
- 10-Q · May 2, 2025
- T. Rowe Price reported net revenues of $1,763.9 million in Q1 2025, up 0.8% year-over-year, driven by a 4.0% increase in investment advisory fees as average AUM rose 9.2% to $1,620.3 billion. GAAP diluted EPS declined…
- 10-K · February 14, 2025
- T. Rowe Price’s 2024 Form 10-K shows material AUM expansion to $1,606.6 billion at December 31, 2024, driven by $205.3 billion of market appreciation and despite $43.2 billion of net cash outflows. Management emphasizes…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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