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…
Earnings analysis · 10-Q
TROW earnings analysis
Filed April 30, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.23
- Operating margin
- 36.6%
What stood out
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Revenue Growth
Revenue increased to $1.857 billion, up 5.3% from $1.764 billion in Q1 2025.
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Diluted EPS Increase
Reported diluted EPS rose to $2.23, a 3.7% increase from $2.15 in Q1 2025.
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Strong Net Operating Income
Net operating income reached $680.5 million, up 14.1% year-over-year from $596.3 million.
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Increase in Average AUM
Average assets under management expanded by 9.6%, from $1.620 trillion in Q1 2025 to $1.776 trillion.
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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.
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Improved Operating Margin
Operating margin improved to 36.6% in Q1 2026, up from 33.8% in Q1 2025.
What to watch
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Net Cash Outflows
T. Rowe Price experienced net cash outflows of $13.7 billion, contributing to a decline in AUM.
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Market Depreciation Impact
Market depreciation accounted for $52.2 billion of the $65.9 billion decrease in AUM since the end of 2025.
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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.
Management's outlook
No specific guidance provided.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.